Can you detail developments in the legal battle over Northern Dynasty’s Pebble project?

We achieved a major victory through an administrative appeal that contested the US Army Corps of Engineers' permit denial for the Pebble project. The appeal led to a remand order, requiring the Corps to reconsider its decision, which lacked alignment with scientific findings in the Final Environmental Impact Statement (FEIS). The remand also challenges previous mitigation requirements imposed by the Corps, which were flagged as noncompliant with federal guidelines. The Environmental Protection Agency (EPA) invoked a rare preemptive veto to prevent mining activities in Alaska’s Bristol Bay watershed. Northern Dynasty, the State of Alaska, and local Native Corporations filed lawsuits arguing that the EPA’s veto overreaches legal authority, lacks a scientific basis, and contradicts the findings of the FEIS. Legal proceedings are ongoing, and Northern Dynasty expects a hearing in Alaska’s federal court in 2025. This appeal could clear a path for permitting, overturning both the veto and previous denial based on what the company describes as unsupported claims.

How will the emergence of data centers further strain copper supply?

AI and data centers consume vast amounts of electricity and copper. Each one requires 27 t of copper per MW of power usage. The largest data center hub in the world draws 2,800 MW, translating to approximately 75,600 t of copper. Microsoft’s new data center in Chicago faces a shortage of available power, leading to discussions with local utilities and the US government about potentially restarting the Three Mile Island nuclear plant. This data center will require at least 1,000 MW. Without a sustainable domestic supply of critical metals, we will increasingly rely on offshore sources to meet these demands.

In the Western world, capital for mine development is scarce, especially compared to China's substantial investment in mining. To keep pace, the Western world must advance mining technologies, secure capital and streamline permitting. Not bringing a large-scale mine like Pebble into production is a delay the US cannot afford. There is a growing realization that boosting critical metal production is essential to remain competitive in the global market.

What is the potential of the Pebble Creek resource?

The Pebble resource is vast and shallow, with the eastern end reaching 1,500 feet. Permitting efforts focus on the initial 1.3 billion t over a 20-year mining span at the west end, where the waste-to-ore ratio is just 0.1:1. This reduces mining costs to US$2/t—far below the industry average of US$6/t. Our ore is well-suited for flotation, with recovery rates around 88% for copper and 70% for gold. Our recent economic analysis, based on conservative prices (US$3.50 copper, US$1,600 gold), estimated an NSR over US$40/t against a US$14/t operating cost. After the initial 20 years, mining shifts eastward to higher-grade zones, with some areas holding copper grades nearly three times higher than our starting grades.

How will the approach to tailings ensure environmental sustainability?

Tailings start as a downstream embankment for the first decade, followed by a centerline design with additional downstream embankments. Unlike conventional tailings facilities, this design allows controlled weeping and seepage, with seepage captured in settlement ponds at the embankment’s base. Pebble’s tailings lack significant acid-generating (ARD) rock, allowing us to safely drain the tailings. Water treatment plants will process the captured water and release it seasonally into nearby creeks to create spawning habitats for salmon. In the summer, most streams around Pebble dry up, so this release will enhance an otherwise limited habitat. This approach to water management addresses concerns about tailings failures. With no standing water in the Tailings Storage Facility (TSF), catastrophic failures due to liquefaction are effectively eliminated, as confirmed in the project’s FEIS.

What is the firm’s value proposition and goals?

We are trading at 0.19 cents/lb of contained copper— most exploration-phase projects trade at 0.32 cents/lb. If we traded in line with peers, our stock would be closer to US$6. Established producers typically trade at 20.5 cents per pound, which would put us at about US$34 a share. The market discount largely stems from a perception that Pebble cannot secure a permit. Litigation has been necessary for the top US copper projects, including Resolution, Rosemont, NorthMet and Twin Metals. My goal is to secure a development partner to advance the project.