Greenland Minerals is appealing the government’s draft decision on the rare earths license

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July 26 (Reuters) – Greenland Minerals Ltd (GGG.AX) said on Tuesday it would appeal the Greenland government’s draft decision not to license it for the Kvanefjeld rare earth project, citing legislation that Effectively bans uranium exploration.

The Australia-listed miner said he will appeal the draft decision because it relies on a rule prohibiting the mining of orebodies grading uranium at 100 parts per million (ppm) or higher, which is being challenged separately in court. (https://bit.ly/3J3xMj9)

“The draft decision rejecting our application for a mining license is inconsistent with Greenland’s stated policy of being a major player in the energy transition,” said Daniel Mamadou, Managing Director of Greenland Minerals.

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In March, Greenland Minerals sued the governments of Greenland and Denmark over legislation passed last year that banned uranium exploration and jeopardized development of the miner’s Kvanefjeld project. (https://bit.ly/3oxXcMl)

To date, over 1 billion tonnes of mineral resources and ore estimates of 108 million tonnes have been delineated at the Kvanefjeld project area in three distinct zones. It also contains radioactive uranium, which some local residents fear is damaging the environment. (https://bit.ly/3J52HeG)

The development comes amid increasing interest in rare earth rights in Greenland, which has the world’s largest undeveloped deposits of metals needed in electric vehicle batteries, according to the US Geological Survey. Continue reading

The Greenland government will make a final decision after a consultation process on the draft decision, the miner said on Tuesday. However, it awaits relief from arbitration to obtain the exploration license.

“Despite the current situation, we hope that the court proceedings will allow for a fully informed assessment of the project,” said Mamadou.

Greenland Minerals shares ended about 7% lower, their worst session in two weeks.

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Reporting by Sameer Manekar in Bengaluru; Editing by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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