Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
The area where Pebble mine would be built, according to its proponents.
A U.S. federal judge has temporarily blocked the Environmental Protection Agency (EPA) from taking action against a massive copper-gold mine project in Alaska proposed by the Pebble Limited Partnership, parent company Northern Dynasty Minerals (TSX:NDM) (NYSE:MKT) said Tuesday.
“Although the decision is a procedural victory and does not resolve our claims that EPA pursued a biased and predetermined 404c veto initiative against Pebble by not complying with the requirements of the Federal Advisory Committee Act (“FACA”), the decision is important for several reasons,” Tom Collier, CEO of the Pebble Partnership said in the statement.
The EPA initiated the 404(c) process to stop the mine at the end of February, alleging the Pebble Mine would have significant and irreversible negative impacts on the Bristol Bay watershed. The unusual action received global attention because Pebble has not filed a permit application.
The mine proponents complained EPA used “de facto advisory committees that worked behind the scenes, and out of the public eye,” which resulted in “biased, junk science.”
The agency has said it is waiting to see the court’s written order on the preliminary injunction and hopes the litigation is resolved quickly so it can move forward with its regulatory decision-making.
The Pebble Partnership insists that if built, the mine would create thousands of jobs and provide an economic base for an economically depressed region that would last for decades.
Estimates are the project would also generate $165 million to $213 million in annual tax and royalty revenue to the state as well as taxes to the Lake and Peninsula Borough, the regional municipality.
Anglo American (LON:AAL) left the project last year, handing its 50% stake in the project back to Northern Dynasty and taking a $300 million write down in the process. Rio Tinto (LON, ASX:RIO) followed Anglo’s steps in April, announcing it was donating its 19.1% stake in Northern Dynasty to two Alaskan charities.
Court proceedings are expected to resume early next year.
The proposed Pebble Mine, 320 km southwest of Anchorage, is within the Bristol Bay watershed.
Image courtesy of HDI Mining.
4 Comments
disqussted999
Amazing!! You mean there is actually some rule of law left in the USSA?
Mike Failla
My thoughts exactly 999!
rayban
I have a question …. The title paragraph says stopped EPA from PROTECTING Bristol Bay (essemtially) . You sound rather biased for someone who has no more info than we do . Or are you not reporting ALL the truth . If there is an issue it shall be found eventually anyway . EPA may have simply saved us some time and money . As an investor I create jobs and sometimes I lose money trying to create jobs .
USSA , I could write a book , half government and half private citizens that simply are not very cognizant of rights , laws and being a good citizen . Oh no they groan , the very issue of citizenship is not important . Thus 50/50 guvmont and shetizan is the problem . The entire world gets lower if anyone does not maintain intelligent view to citizenship . Not just government . Thus I can complain little , there is enough blame to go around to near all people , include me .
The WORLD must embrace civilized progress and law abiding behavior or we shall all be our bunker some day some way . Need I mention riots worldwide and stupidity supreme so common . It is not just the governments .
Honheree
Temporarily, some sense of sanity from the judicial system.
One more point. Finally, Cecilia you have an accurate photo of Pebble, and it is not any thing special, mundane scenery, like most of Alaska. just as I stated in previous posts.
Not the unusual, spectacular scenery that the head of the EPA stated when she first visited Pebble in pouring rain and fog in 2011. Clearly individuals and biased interests had made up her mind for her, without any science, prior to even then.