Northern Dynasty Minerals, Inc. (AMEX:NAK) crashed on Wednesday, plunging 37% to trade around $1.27, following a damaging legal development in the tug-of-war between the company and the U.S. government.
- NAK stock is crashing. See the chart and price action here.
The Background
In early 2023, the Environmental Protection Agency (EPA) used a rare power under Section 404(c) of the Clean Water Act to veto or effectively ban Northern Dynasty’s flagship Pebble Project in Alaska.
The EPA argued the proposed mine would cause irreparable harm to the Bristol Bay salmon fishery.
The DOJ’s Role
Northern Dynasty sued to overturn that veto, arguing it was illegal and politically motivated.
Many investors bought NAK stock recently betting that the Trump administration would settle the lawsuit or simply stop defending the veto, clearing the path for the mine.
Wednesday’s reality check: The Department of Justice (DOJ) filed a legal brief officially defending the EPA’s veto. Instead of walking away from the case, the government’s lawyers told the court that the veto should stand.
Why It Crushed NAK Stock
Investors were banking on a political pivot. They hoped that because the Trump administration has expressed support for domestic mining and critical minerals (like copper), it would let the Pebble Project proceed.
The Shock: Northern Dynasty’s CEO Ron Thiessen expressed shock that the administration is still defending the veto despite its pro-mining rhetoric.
“We find it surprising that despite the Executive Orders and the many statements made by the administration related to Alaskan development, pro-energy, pro-critical metals, pro-defense and military support, removing roadblocks to permitting, on the need for copper, etc., this EPA would choose to defend the unlawful Obama-Biden veto,” Thiessen said in a statement.
The Legal Deadlock: Since the DOJ is standing its ground, the case now moves to a long, drawn-out legal battle rather than a quick settlement.
NAK Price Action
Northern Dynasty’s sell-off has been intense, with the stock hitting a five-month low. At one point on Wednesday, the share price dropped as much as 45% in early trading before seeing a slight, volatile bounce.
Trading volume has been exceptionally high as investors react to the news—surpassing 44 million shares by midday, according to data from Benzinga Pro.
NAK was down 37.44% at $1.27 at the time of publication Wednesday.
Photo: Shutterstock
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