December 18, 2020 — This week, a group of shareholders filed a class action lawsuit against Northern Dynasty, claiming the company and its directors misled shareholders about the viability of the proposed Pebble Mine and that its stock prices were artificially inflated between Dec. 21, 2017, and Nov. 25, 2020.
Northern Dynasty is the parent company of the Pebble Limited Partnership, which owns the mineral rights to the Pebble deposit and has been promoting the mine to investors and engaging in the permitting process with Alaska’s U.S. Army Corps of Engineers.
On Nov. 25, the Corps denied the permit application, stating the proposal did not “comply with Clean Water Act guidelines.” The stock took a nosedive of more than 50 percent immediately following the announcement. The permit process had been considered all but dead before the 2016 election of President Donald J. Trump, whose administration allegedly negotiated with Pebble officials to allow the permitting process to run its course.
On Dec. 17, 2020, two days after the class action filing, Northern Dynasty published a press release detailing its plans to file an appeal of the Corps’ decision, citing the quality of its mitigation plan to compensate for the degradation of habitat in the process of mining the deposit’s heavy metals.