Lawsuit challenges permit for mine site construction on west side of Alaska’s Cook Inlet

By Yereth Rosen, Alaska Beacon May 23, 2025
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The permit allowing a new access road and an expanded airstrip fails to protect a quiet inlet site important to endangered Cook Inlet belugas, the lawsuit says
Photo of Cook Inlet beluga whale and calf is public domain and available for media use with appropriate credit. Please credit: Hollis Europe / Jacob Barbaro, NOAA Fisheries

Conservation groups and a Tribal government have sued to overturn a permit that allows a mining company to build a road and expand an airstrip at a site important to endangered whales.

At issue is the permit the U.S. Army Corps of Engineers granted in September to Contango ORE Inc. for construction work at the Johnson Tract mining prospect on the west side of Cook Inlet.

The site is along the Johnson River and near Tuxedni Bay, a place where Cook Inlet belugas gather in winter to feed.

The lawsuit alleges that the Corps failed to properly consider impacts of the development on the endangered belugas, including the impacts of aircraft and vessel noise. The complaint also says the Corps failed to properly analyze the anticipated acid rock drainage and other sources of water pollution. The lawsuit, filed Tuesday in U.S. District Court in Anchorage, alleges violations of the federal Endangered Species Act, Clean Water Act and National Environmental Policy Act.

The plaintiffs are Cook Inletkeeper, the Chickaloon Village Traditional Council, the Center for Biological Diversity and a Soldotna resident, Anna-Maria Mueller.

Satchel Pondolfino, clean water lead with Cook Inletkeeper, said in a statement that the Corps failed to assess the effect on the belugas in the inlet, which is named Tikahtnu in Dena’ina.

    “The Johnson River supports an ecosystem rich with salmon, herring, wolves, wolverines and iconic Alaskan brown bears, which are becoming scarcer as Tikahtnu becomes more industrialized,” Pondolfino said. “What’s at risk is one of the most ecologically rich corners of Tikahtnu and the Army Corps has a duty to carefully scrutinize all implications of this permit.”

    A spokesperson for the Corps’ Alaska district office declined to comment on the lawsuit, citing policies concerning pending litigation.

    Cook Inlet belugas are highly sensitive to noise and depend on calls and songs to communicate and navigate. Tuxedni Bay is a refuge for them because it currently lacks the industrial noise widespread in other parts of the inlet, according to scientists.

    Last year, Cook Inletkeeper and the Center for Biological Diversity petitioned the National Marine Fisheries Service to create a protective zone around Tuxedni Bay, limiting traffic and human activities there to keep noise levels low. That petition has not been granted.

    The Johnson Tract, comprising about 21,000 acres, is within the borders of Lake Clark National Park but owned by Cook Inlet Region Inc., an Alaska Native corporation. CIRI acquired the inholding through a trade enabled by a 1976 federal law, the Cook Inlet Land Exchange. For decades, the corporation has been considering options for mining development at the site.

    In 2019, CIRI leased the site to Vancouver-based HighGold Mining Inc., which conducted some exploration. Fairbanks-based Contango boughtHighGold last year, and with that acquisition, the company took over Johnson Tract exploration operations.

    Contango is also a part owner of the Manh Choh mine near Tetlin in eastern Interior Alaska, is developing the Lucky Shot mine in the Hatcher Pass area of the Matanuska-Susitna Borough and has other projects in early exploration stages.

    The Johnson Tract holds gold, silver, copper, zinc and lead. Contango estimates that the Johnson Tract property holds over 1 million gold equivalent ounces, an industry measurement that combines different types of precious metals. Initial capital costs to develop the mine are estimated at $214 million, and once built, the mine would operate for at least seven years, according to a technical report the company released earlier this month.

    An ore sample from the Johnson River area is seen on May 21, 2025, in a display case in the Alaska State Capitol. The Johnson Tract holds gold, silver, copper, zinc and lead. (Photo by Yereth Rosen/Alaska Beacon)

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