Northern Dynasty Minerals (TSX:NDM,NYSEAMERICAN:NAK) shares plunged on Wednesday (February 18) after the US Department of Justice (DOJ) filed a court brief backing the Environmental Protection Agency’s (EPA) January 2023 veto of the company’s long-contested Pebble project in Alaska.
The brief supports the EPA’s prior determination to restrict development of the proposed copper, gold and molybdenum project in the Bristol Bay watershed. Northern Dynasty and its wholly owned US subsidiary, Pebble Limited Partnership, are seeking summary judgment in their legal challenge to overturn the EPA’s veto.
The veto, issued under Section 404(c) of the Clean Water Act, blocks the disposal of mine waste in certain waters within the Bristol Bay area, effectively preventing the project from advancing through the federal permitting process.
In its determination, the EPA said the proposed mine would destroy more than 2,000 acres of wetlands.
The Pebble project has faced more than two decades of regulatory scrutiny and opposition, largely due to its location in the Bristol Bay watershed, home to some of the world’s largest sockeye salmon fisheries.
Supporters argue the project represents a strategic domestic source of copper and other critical minerals, while opponents contend it poses unacceptable environmental risks.
Northern Dynasty Minerals’ TSX performance, February 12 to 19, 2026.
Chart via Google Finance.
In a Wednesday statement, Northern Dynasty President and CEO Ron Thiessen criticized the government’s position:
“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 pushed back strongly against the DOJ’s filing in a follow-up comment on Thursday (February 19), claiming that the “veto was illegal, and a high level of confidence that the court will agree with us.”
The CEO added, “This DOJ brief makes many arguments that we have seen before and that directly contradict the findings of the Final Environmental Impact Statement. The flaws in this brief only increase that confidence.’
After Northern Dynasty filed its legal challenge in Alaska’s federal district court in 2024 and settlement discussions with the EPA failed, the parties agreed to seek resolution through summary judgment. Under the court’s timeline, the DOJ filing was due by Tuesday (February 17), with final reply briefs from the plaintiffs to follow.
If built, Pebble would be the largest copper, gold and molybdenum extraction site in North America. A 2023 economic study estimates the project could produce 6.4 billion pounds of copper, 7.4 million ounces of gold and 300 million pounds of molybdenum over 20 years, along with 37 million ounces of silver and 200,000 kilograms of rhenium.
Despite those projections, the project’s path forward remains tied to the outcome of the legal battle. Northern Dynasty said it is reviewing the DOJ’s filing with its legal advisors.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.