Shares of Northern Dynasty Minerals Ltd (NAK) get a good start on Thursday before ring of the bell. The stock surged about 18% in premarket trading. NAK saw its stock price falling 25% on Tuesday when suspicion raised about one of its projects. But it recovered next day by closing the day with the gain of almost 44%.
Political leadership in Alaska called its Pebble Mine project in the state threat to salmon fishing industry. That raised many questions around possibility of the company to get a go ahead from regulators for the project.
Northern Dynasty gets a deadline on Monday by the U.S. Army Corps of Engineers. The military authorities have given the company a time period of three month to satisfy them on the project. The Army Corps required the company to explain them measures to avoid any adverse impacts. There is a wetland measuring more than 3,200 acres to be developed as mine.
Two Republican Senators from Alaska were not in favor of the mine project. Senators Lisa Murkowski and Dan Sullivan late on Monday called the project potentially harmful. They were in view that it could damage the Bristol Bay. Alaska’s that region is well known for activities like hunting and fishing.
Murkowski is a powerful politician who currently chairs Senate Energy and Natural Resources Committee. And her opposition would not be ignorable by the U.S. federal agencies.
Other influential Republican who opposes the project is U.S. President’s son Donald Trump Jr. As an important speaker at Republican National Convention on Monday, he raised voice against the project. He described the project destructive for an area where people do hunting and fishing.
Responding to the Army Corps demand, Northern Dynasty shared plan to preserve land. And that would be multiple of the land so impacted by the project.
Northern Dynasty might get the go ahead in due course of time. But at the moment its share is swinging up and down. On Monday it lost nearly 30% and further lost 40% next day but recovered almost 40% on Wednesday. At last check on Thursday it was up 6% after hitting a 20% gain mark in premarket session.