Saving Seafood

Shareholders file Pebble Mine class-action suit, parent company plans permit appeal

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.

Read the full story at National Fisherman

ALASKA: Pebble’s owner reports growing deficit and doubts about its future. Again.

December 6, 2019 — The company trying to develop the Pebble Mine is going to need a lot more money to keep up the pace.

Northern Dynasty, based in Vancouver, B.C., is the parent company of the Pebble Partnership. It reports losing about $40 million (CA$53 million) in the first nine months of the year.

Its deficit now exceeds $400 million. If the company can’t raise the money to pay its debts when they come due, it may have to “reduce or curtail” its operations “at some point,” the report says.

“As such, there is material uncertainty that raises substantial doubt about the Group’s (Pebble and its parent company’s) ability to continue as a going concern,” the report says.

Northern Dynasty has included nearly identical statements in previous quarterly reports.

Pebble spokesman Mike Heatwole said in an email that Pebble continues to look for a partner and is confident in its ability to continue advancing the project.

This and previous financial statements tell a story that’s much darker than the rosy image Pebble projects in its ad campaign, said Daniel Cheyette, a vice president of Bristol Bay Native Corporation.

Read the full story at Alaska Public Media