THE BOURSE WHISPERER: Greenland Minerals and Energy (ASX: GGG) is celebrating the Greenland parliament’s decision to vote in favour of uranium mining.
Greenland has removed its long‐standing zero‐tolerance policy concerning uranium and other radioactive elements.
“This landmark decision represents a significant moment for Greenland, as it places Greenland on the path to uranium‐producer status, and thereby opens up coincident resources of rare earth elements to exploitation,” Greenland Minerals and Energy said in its announcement to the Australian Securities Exchange.
“The removal of the zero‐tolerance policy is in alignment with Greenland’s broader intent to develop mining projects as a core to its future economic prosperity.”
The company laid claim to providing the country with a good reason to lifts its ban as a fair whack of uranium and rare earth elements are hosted within the northern Ilimaussaq Complex, which forms the basis of the company’s 100 per cent-owned Kvanefjeld project.
The global resource base (JORC‐code compliant) established for Kvanefjeld contains 575 million pounds of uranium, and 10.3 million tonnes of rare earth oxide (REO).
Greenland Minerals and Energy is currently conducting a definitive feasibility study over the Kvanefjeld project in order to evaluate its potential as a poly‐metallic mining operation to produce uranium oxide, rare earth concentrates, and zinc.
The company released a Preliminary Feasibility Study on Kvanefjeld in 2012, which outlined a long‐life, internationally cost‐competitive operation it considers would make Greenland a major supplier of REEs and a substantial long‐term supplier of uranium oxide.
“For these reasons Kvanefjeld represents one of Greenland’s most significant, and strategically important mining opportunities,” the company said.
“The decision to abolish the zero‐tolerance policy comes after several years in which uranium has been the subject of political and community discussions in Greenland.”
Greenland Minerals and Energy explained the timing of the announcement came at a good time for the company and for the Kvanefjeld project as it has metallurgical process development well‐advanced, and several years of environmental baseline studies have been completed.
The company said it was now looking to work closely with regulatory bodies to lock in the configuration of the Kvanefjeld project, which then allows for the finalisation of environmental and social impact assessments and the lodging of an exploitation license application.
“Greenland is preparing to be appropriately equipped to process the application, in parallel to establishing a regulatory framework to effectively manage uranium production,” Greenland Minerals and Energy said.