Northern Dynasty shares surge following Trump’s executive order on critical minerals

Shares of Northern Dynasty Minerals Ltd. (TSX: NDM, NYSE: NAK) jumped more than 30% on Monday after President Donald Trump invoked emergency powers last week to strengthen US critical mineral production.

Trump’s executive order, signed Thursday, leverages the Defense Production Act to provide financing, loans, and other investment support for domestic processing of critical minerals and rare earth elements.

The order also underscores the historical significance of US mining and the need for a stable, predictable supply of essential minerals, including copper and gold, for defense, technology and infrastructure. It also directs federal agencies to expedite approvals for domestic mineral production projects.

By 12:39 p.m. ET, Northern Dynasty’s shares had climbed 32% to C$1.73, pushing the company’s market capitalization to C$908 million ($634 million), with investors expecting that the order could fast-track its flagship Pebble project in Alaska.

Controversial copper project

Northern Dynasty’s Pebble project is considered the world’s largest undeveloped copper deposit. Alongside significant amounts of gold, molybdenum and silver, the deposit contains a notable rhenium resource, a mineral critical for military applications.

However, the project has faced strong opposition for nearly two decades due to its potential environmental impact. The proposed mine site lies in the Bristol Bay region, home to the world’s largest sockeye salmon fisheries.

In January 2023, the US Environmental Protection Agency blocked the project by prohibiting Northern Dynasty’s US subsidiary from storing mine waste in the Bristol Bay watershed. The company has since filed a complaint, arguing that the EPA’s decision violates federal statutes, including Alaska’s statehood rights and a land exchange approved by Congress.

Over an estimated 20-year mine life, Pebble is expected to churn out 6.4 billion lb. of copper; 7.4 million oz. of gold and 300 million lb. of molybdenum, plus 37 million oz. of silver and 200,000 kg of rhenium.