PolyMet Mining Corp. (PLM) stock prices were up by 1.34% as of the market closing on June 18^th 2021, bringing the price per share up to USD$3.77. After-hours trading saw the stock fall by 5.57%, bringing it down to USD$3.56.

Devastating EPA Decision

The company announced on June 4^th, 2021 that the Environmental Protection Agency (EPA) had reached the conclusion that PLM’s proposed project to mine copper, nickel, and other precious metals had the potential to affect its surrounding areas. The primary area of concern was the water network on the Fond du Lac reservation and in Wisconsin, both of which are more than 100 miles downstream of the mining sites.

Questioning the Decision

The EPA’s conclusion does not imply that the company’s mining activities will result in adverse effects on downstream water quality, just that such an effect is possible. This is a direct contradiction of the 2018 Minnesota Pollution Control Agency’s certification that the project would not affect in-state water quality, under section 401 of the Clean Water Act. The company plans to present evidence that the MCPA conveyed to the Army Corps of Engineers, likely resulting in the requirement of a hearing to make a final decision in regard the matter.

Basis for Doubt

During its operation, the project will collect and treat water, resulting in a net reduction of contaminants in the St. Louis River system. This includes water that hold mercury, among other contaminants, from previous mining of taconite in the area. The company has expressed grave concerns about the conclusion reached by the EPA, citing the disconnect between meeting standards of quality close to the source of the discharge while failing to do so for locals much further downstream. These concerns are compounded by the likelihood of the project resulting in reduced overall mercury loading to the river.

Challenging the EPA

Backed by science that supports the development of the project, the company is determined to work with both the EPA and Corps to rectify the issue so development can continue. Because the EPA needs to approve projects for downstream water quality for the issuance of a section 404 wetlands permit, PLM is keen to accelerate the process. The Corps has placed the permit on old during the review and is likely to stay in place until a resolution to the dilemma.

Future Outlook for PLM

Confident of the regulatory integrity of their project, PLM is determined to challenge the devastating EPA evaluation. The company is keen to continue its trajectory of success and usher in unprecedented growth with the advancement of its mining project. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.