Environmental Protection Agency study of 'hypothetical mine' continues under shroud of secrecy
April 26, 2013
Northern Dynasty Minerals Ltd. ("Northern Dynasty" or the "Company") (TSX: NDM; NYSE MKT: NAK) responded today to the U.S. Environmental Protection Agency's (EPA) release of a revised draft of the Bristol Bay Watershed Assessment (BBWA) report originally released last spring, reaffirming that the new report fails to correct the central flaw that critics roundly agree invalidates the original and revised study.
You simply cannot assess the effects of a mining project that has not been proposed, and for which key engineering solutions, environmental safeguards and site-specific mitigation factors have not been provided
, President & CEO of Northern Dynasty, a 50% owner of the Pebble Limited Partnership (the "Pebble Partnership" or "PLP") with
The EPA has clearly made some effort to address the myriad errors of fact, methodology and design that professional Peer Reviewers and other commentators catalogued with respect to the original BBWA draft last year, and we will take some time to assess those efforts
"But let's be clear - the Bristol Bay Watershed Assessment process is fatally flawed, and should have no bearing on the future development of one of America's most important strategic mineral resources
The EPA initiated the BBWA in
to assess the potential effects of future development, including mining, on the land, people and resources of 40,000 square miles in southwest
. After narrowing the scope of its exercise on several occasions to focus primarily on the hypothetical development of the Pebble copper-gold-molybdenum deposit, the EPA received widespread criticism from a panel of independent Peer Reviewers - who called EPA's efforts to evaluate the effects of a 'hypothetical mining scenario' on the water, fish, wildlife and cultural resources of Bristol Bay "
" and "
Thiessen noted that concerns previously expressed by stakeholders in
and elsewhere about the federal agency rushing the process and providing inadequate opportunities for public scrutiny and involvement only seem to be getting worse. The
State of Alaska
federal delegation and a majority of Alaska Native Regional Corporations criticized the EPA last year for providing inadequate opportunities for public involvement.
Last year, EPA was criticized for providing a short 60-day public review period right in the middle of Alaska's fishing season, for holding its initial public hearings about an Alaska issue in Seattle, and for providing inadequate opportunities for Peer Reviewers to consider public input
," Thiessen said. "
This time around, the public comment period has been cut in half, there will be no public meetings and there will be zero opportunities for stakeholders to engage with the independent Peer Review panel. If the lack of transparency and opportunity for public involvement in this process was a problem before, it's an even bigger problem today
Thiessen added that EPA has been criticized for refusing to fully comply with information requests from three different Congressional committees in
, and has not answered basic questions about how much money was spent on the assessment. EPA also reportedly funded as many as six secret 'peer review' studies of third-party reports related to mineral development in southwest
to validate the misleading conclusions reached in the initial draft of the ill-advised BBWA.
For the BBWA or any other study undertaken in the public interest to be credible, it must not only apply the best available science and scientific methodologies, it must also be seen to be fair, open and balanced
," Thiessen said. "
I think the Bristol Bay Watershed Assessment has failed on all counts. As a result, the only appropriate path going forward is for EPA to shelve this flawed study and allow Pebble to be assessed under the well-established NEPA permitting process
Under previous EPA Administrator
, agency officials had expressed the view that EPA held legal authority under section 404c of the
Clean Water Act
to pre-emptively veto development projects it solely deemed to have unacceptable effects. A vast majority of legal commentators have dismissed that view, and Thiessen said he is confident that future decisions about Pebble will be made by federal and state regulators working within the well-established and understood National Environmental Policy Act (NEPA) permitting process.
"Whether EPA chooses to spend valuable manpower and taxpayer dollars completing the BBWA report or not, we are confident that a comprehensive mine development proposal presented by the Pebble Partnership - including state-of-the-art strategies to protect important water, fish, wildlife and cultural resources - will ultimately be judged by federal and state regulators against the rigorous environmental standards of Alaska and the United States,"
he said, adding that PLP's goal is to trigger permitting under NEPA later this year.
"Pebble is among the most important mineral development projects in the world today, with the potential to create thousands of US jobs, billions of dollars in annual economic activity, and the strategic minerals necessary to supply American manufacturing over decades of production. It is too important a project to have its future dictated by a fatally flawed and clandestine study, and I'm confident that the incoming EPA Administrator will share that view."
About the Pebble Project
The Pebble Project is an initiative of the Pebble Partnership to responsibly develop a globally significant copper, gold and molybdenum deposit in southwest
into a modern, long-life mine, which will benefit not only the proponent, its partners and the people and culture of the
State of Alaska
, but also industries, suppliers and consultants locally and in the Lower 48 United States of America. The project is located 200 miles southwest of Anchorage on state land designated for mineral exploration and development. It is situated in a region of rolling tundra approximately 1,000 feet above sea-level, 65 miles from tidewater on Cook Inlet and presents favourable conditions for successful mine site and infrastructure development.
The Pebble Project consists of the Pebble deposit, surrounding mineral claims and a stream of financing provided by Northern Dynasty's project partner Anglo American US (Pebble) LLC. The Pebble Partnership was established in
as a 50:50 partnership between a wholly-owned affiliate of Northern Dynasty and a wholly-owned subsidiary of
plc. Both Northern Dynasty and
have equal ownership and direction of the Pebble Partnership.
Under the terms of the Pebble Limited Partnership Agreement,
is required to elect to commit
in staged investments in order to retain its 50% interest in the Pebble Project. Funds provided by
are currently being invested in comprehensive exploration, engineering, environmental and socioeconomic programs toward the future development of the Pebble Project.
About Northern Dynasty Minerals Ltd.
Northern Dynasty is a mineral exploration and development company based in
, which holds indirect interests in over 600 sq. miles of mineral claims in southwest
. Northern Dynasty's principal asset is a 50% interest in the Pebble Partnership, owner of the Pebble Project. The Pebble Project is an advanced-stage initiative to develop one of the world's most important mineral resources.
For further details on Northern Dynasty please visit the Company's website at
or contact Investor services at (604) 684-6365 or within
at 1-800-667-2114. Review Canadian public filings at
and US public filings at
Ronald W. Thiessen
President & CEO