Greenland Minerals looks forward to working with new Greenland government as it progresses its Kvanefjeld Rare Earth Project development

Greenland Minerals Ltd (ASX:GGG) (OTCMKTS:GDLNF) (FRA:G7P) is looking forward to working with the new Greenland government, which is to be formed following a national election on 6 April. 

The company has operated its 100%‐owned Kvanefjeld Rare Earth Project effectively under all successive Greenland Governments since commencing operations in 2007. 

New coalition government

The Inuit Ataqatigiit (IA) Party received the largest number of votes, giving it the right to negotiate with other parties to form a coalition government.

The Siumut Party that led the previous coalition government received the second largest number of votes.

Statutory public consultation

As a cornerstone in the exploitation (mining) license application process, the Environmental Impact Assessment (EIA) and the Social Impact Assessment (SIA) reports were formally accepted by the Greenland government as meeting the requirements for public consultation on 17 December 2020, after a multi‐year review‐revision process.

Kvanefjeld is currently in a statutory public consultation period that is scheduled to conclude on 1 June 2021.

The Greenland Government initiated the public consultation on 18 December 2020.

In progressing Kvanefjeld, the company has at all times operated in strict accordance with Greenland’s Minerals Act.

Its EIA for Kvanefjeld was formally accepted as meeting the Greenland Guidelines in September 2020.

The EIA and the SIA, draw on the work of a cross‐section of leading independent, highly accredited consultants.

Kvanefjeld development strategy

GGG’s application for an exploitation licence for Kvanefjeld follows a development strategy that was shaped by extensive Greenland stakeholder engagement at a community and government level, captured in the project’s Terms of Reference, which went through a public consultation process in 2014‐2015.

A follow-up whitepaper was approved by the Greenland Government in late 2015, which shaped the impact assessments that are now in public consultation.

Uranium

The development strategy for Kvanefjeld is focused on the production of rare earth elements but also incorporates the by‐production of zinc, uranium and fluorspar.

Uranium at Kvanefjeld occurs at relatively low grades compared to most primary uranium mines, however, it can be recovered at low incremental cost during rare earth production.

It is not of great economic significance to the Kvanefjeld Project, however, revenues along with those from other by‐products would serve to reduce rare earth production costs.

IA Party’s position

In the lead up to the election, the IA Party leadership expressed an anti‐uranium position and has reaffirmed this position since the election win.  

The company, which looks forward to engaging with the new government once it has been established,  will update the market as further information relating to the status of the Kvanefjeld Project is available, and the forward strategy.

Story by ProactiveInvestors