Northern Dynasty Minerals Ltd (NAK)

[Atinus]

Don't kill the messenger: Corps issues statement on Environmental Investigation Agency’s recorded conversations

https://www.poa.usace.army.mil/Media/News-Releases/Article/2358737/corps-issues-statement-on-environmental-investigation-agencys-recorded-conversa/

Sept. 23, 2020

JOINT BASE ELMENDORF-RICHARDSON -- We are aware of the Environmental Investigation Agency’s recorded conversations. We are committed to a fair and transparent process, which includes maintaining high standards of integrity through to the record of decision.

Upon review of the transcripts, we have identified inaccuracies and falsehoods relating to the permit process and the relationship between our regulatory leadership and the applicant’s executives.

“We have the highest level of trust and confidence in the integrity of our regulatory team,” said Col. Damon Delarosa, Alaska District commander. “As we continue to work through this process, we will continue to uphold and follow applicable laws and regulations.”

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I don't want to be the bearer of bad news, but I hadn't seen this posted yet and you should see it. I was long on the stock and would consider jumping in again but am not seeing any conciliatory statements, not from the Governor, the Senators, the Corps or the administration.

I saw a comment repeating the President's statement that there would be "no politics" involved in the final decision, and ideally, that would be true. Unfortunately, the tapes are the thing that now injects politics into the equation, with the executives vouching for relationships that put the named elected officials on the spot.

On one hand, you would hope that the company has a working relationship with leaders in the state, but on the other, those making the final decision have to avoid even the appearance of impropriety. The pushback across the board from the state and the Corps is not surprising.

A key item to consider is that after the Corps, the state still has a role to play in making a final decision with the pending "certificate of reasonable assurance". https://www.thecordovatimes.com/2020/09/12/harvesters-critical-of-dunleavys-pebble-agenda/

Reportedly, "The Department of Environmental Conservation recently held a 30-day comment period on the state’s decision on whether to provide a “certificate of reasonable assurance” for Pebble’s major federal permit, a document required as part of the federal Clean Water Act permit. The state has until Sept. 22 to make its decision on that certificate."

But nothing can be found on Alaska's DEC site (select "Certification under Corps 404 permit" under "Permit Type": https://dec.alaska.gov/Applications/Water/WaterPermitSearch/Search.aspx

So, I suppose given the timing, the tapes were designed to impact that decision, which appears up in the air. Again, this is all pertinent, publicly available information. I'm looking for a reason to be hopeful. If the state issues the certificate, that would be a positive sign.