In the global hunt for resources, the natural environment must be protected.
The post Here’s why the Ioneer (ASX:INR) share price is charging 11% higher appeared first on The Motley Fool Australia. –
The Ioneer Ltd (ASX: INR) share price is charging higher today, up 11% in late morning trade.
Below we take a look at the latest legal announcement from the emerging ASX lithium-boron producer.
What legal developments did Ioneer announce?
Ioneer’s share price is rocketing higher after the company reported on the findings issued by the United States Fish and Wildlife Service (FWS) over an endangered plant species at the company’s proposed Rhyolite Ridge lithium mine in the US state of Nevada.
The plant in question, Tiehm’s buckwheat, is a small, flowering plant growing on public land in the Nevada’s Silver Peak Range. It grows well in soils containing lithium and boron.
According to the release the findings were required under a recent court stipulation agreed upon by Ioneer, FWS and the Plaintiffs.
The FWS found that “due to severe drought conditions and a drought-induced herbivory (where animals are eating plants), an investigation into an Endangered Species Act (ESA) listing of Tiehm’s buckwheat is ‘warranted’.”
The agency will announce its decision on whether to propose an ESA listing for the plant in September.
Commenting on the development, Ioneer’s managing director Bernard Rowe said:
We fully support and share FWS’s commitment to protect and preserve Tiehm’s buckwheat. The latest finding was in line with our expectations, and we support the FWS’s deliberations on a final listing decision. This process will provide greater certainty around our schedule and diminishes the prospect of future litigation…
We have carried out significant work on propagation and transplantation of the species and remain confident the plant and the mine can successfully coexist. Ioneer remains committed to protection of Tiehm’s buckwheat irrespective of its listing status, and we will implement the highest standard of measures to ensure that the species is protected.
Rowe highlighted that the ongoing drought is specifically threatening Tiehm’s buckwheat, with small animals now eating the plant.
He added that, “FWS is authorized by the ESA to issue an incidental take permit for activities it finds will not jeopardize continued existence of an ESA-listed species. Our protection and conservation efforts have been designed to meet that standard to maximize protections.”
Ioneer share price snapshot
Ioneer shares have gained a whopping 135% over the past 12 months, well surpassing the 24% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the Ioneer share price is up 9%.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.