Greenland Minerals to Object to Government's Rare Earth License Draft

Greenland Minerals Ltd said it will oppose the Greenland government's draft decision not to grant it a rare earth license for the Kvanefjeld rare earth project on the grounds that a piece of legislation prohibits uranium exploration.

(Photo source: REUTERS)

Greenland holds the world's largest untapped deposits of the metal needed for electric car batteries, according to the U.S. Geological Survey. The Australian-listed miner said it will challenge the draft decision because it relies on a rule - which prohibits mining ore bodies with uranium content of 100 parts per million (ppm) or more - that is being challenged separately in court.

Daniel Mamadou, managing director of Greenland Mining, said, "The draft decision to reject the mining license application is contrary to Greenland's stated policy of being a key player in the energy transition."

In March, Greenland Mining took the Greenland and Danish governments to court over legislation passed last year that banned uranium exploration and put the development of the miner's Kvanefjeld project at risk.

So far, more than one billion tons of mineral resources and an estimated 108 million tons of ore have been listed in three different areas of the Kvanefjeld project area. The project also contains radioactive uranium, which some residents fear will harm the environment.

(Photo source: REUTERS)

The final decision of the Government of Greenland will be made after consultations on the draft decision. However, it expects to obtain relief from the arbitration process in order to obtain a rare earth license.

Kvanefjeld project is located in southern Greenland in an area with year-round direct shipping access. To date, over 1 billion tonnes of mineral resources (JORC-compliant) have been delineated in the project area, across three different zones – Kvanefjeld, Sørensen, and Zone 3.

Greenland Minerals is a major Australian mineral exploration and development company that has been operating in Greenland since 2007. The company's primary focus is on the development of mineral resources critical to renewable energy technologies, including the Kvanefjeld rare earth project.

(Source: REUTERS)

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