Greenland Minerals and Energy advances permitting
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12:00 21 Apr 2017
The company is finalising its environmental and social impact assessments.
Greenland Minerals and Energy advances permitting
Shares are up over 40% in 2017, currently priced at $0.10
Greenland Minerals and Energy (ASX:GGG) has made another step forward in progressing its mining licence application for its flagship Kvanefjeld Project in Greenland.
The services of consulting company Shared Resources, have been engaged to assist in finalising required environmental and social impact assessments.
Shared Resources has extensive experience with regulatory systems in developing countries, which will be of considerable benefit during the mining license application process.
The next step of this process involves the social impact assessment (SIA) and environmental impact assessment (EIA) being accepted by the Greenland government.
After this is complete, the next phase of the process will be a period of public consultation.
In parallel to project permitting, Greenland Minerals is working with strategic partner Shenghe Resources Holding Co Ltd (SHA:600392) to optimise Kvanefjeld and improve its cost‐structure.
Following meetings in China in February and the establishment of a joint technical committee, work programs have been planned and implemented.
Kvanefjeld Project
Greenland Minerals' vision is to develop a stable, long-term source of materials for clean energy generation and energy efficient technologies.
Kvanefjeld is one of the world's most advanced rare earth and uranium projects with defined JORC compliant resources of over 1 billion tonnes containing 11.1 million tonnes of rare earth oxide and 593 million pounds of uranium.
As per the updated feasibility study, the net present value of the project is US$1.59 billion and the internal rate of return is 43.4%.
Project financing costs are US$831.9 million and the project has a payback period of 5 years.
Shenghe partnership
Greenland Minerals recently commenced the technical cooperative program with its strategic partner and 12.5% shareholder, Shenghe.
This strategic relationship with Shenghe represents a major landmark for Greenland Minerals and the development of its flagship Kvanefjeld rare earths and uranium project.
The fundamental objective of both parties is to develop the Kvanefjeld rare earth and uranium project in Greenland as a cornerstone to new supply networks.
The relationship with A$2+ billion market cap Shenge is significant given its expertise in mining, beneficiation, metallurgy, separation and downstream processing and marketing.
This significance has been captured by a re-rating in the share price, now trading up over 40% year to date at $0.10.
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