Northern Dynasty Minerals Ltd (NYSEMKT:NAK) may be on the verge of a settlement with the Environmental Protection Agency (EPA) to bring an end to the legal battle between the two parties.
Northern Dynasty’s Pebble Partnership unit together with the EPA teamed up to file a motion in federal court seeking to extend their negotiations by another week. This was after they failed to come to a conclusion within the limited window of time that was issued. The filing has opened doors to speculation that the two are on the verge of a settlement that will put an end to the dispute.
EPA received the counter attack from Northern Dynasty after the regulatory action it took on the firm during President Obama’s administration. The regulatory action got in the way of Pebble Project’s permit application.
Investors optimistic about the outcome of the dispute proceedings
Investors are clearly hopeful about Northern Dynasty settling its legal dispute with EPA. This is evident from the fact that the mining company’s shares surged by 9.5% after news broke about the joint filing for an extended duration for the negotiations. The extended duration is thus expected to be enough for the two parties to strike a settlement deal.
“A great deal of common ground has been established between the parties,” stated Tom Collier, the CEO of Pebble.
The good performance of Northern Dynasty stock may be attributed to traders anticipating successful permissions for the company. It can also be attributed to the Trump administration cutting regulations. The ongoing negotiations have already shown a lot of promise. One of the subjects of discussion that Northern Dynasty and EPA have been engaging in is the importance of respecting the rule of law. This is very important when dealing with statutory mandated processes especially in the Clean Water Act.
Northern Dynasty expects to resolve various matters this week regarding federal statutes including the National Environmental Policy Act and the Clean Water Act. The two parties are expected to reveal the outcome of their negotiations within the coming week.
Northern Dynasty stock closed the latest trading session on Wednesday at $2.04 after dropping by 1.45 percent from the value of the stock during the previous close.