PERTH (miningweekly.com) – Uranium explorer Greenland Minerals and Energy has resumed trading on the ASX following a lengthy suspension on speculation that a zero-tolerance policy towards uranium mining in Greenland would impact on its project in that country.

The company has since received a letter from the Minister of Industry and Mineral Resources which confirmed that Greenland’s exploration licence at the Kvanefjeld project was in good standing, and that the company could continue its exploration activities and feasibility studies.

However, the letter also confirmed that the existing zero-tolerance policy for uranium mining was still in place, and that no change to that policy had been decided.

The Minister added that further information regarding environmental, health and regulatory aspects of uranium mining were required before any changes to the policy would be considered, and that the government intended to investigate these areas further, before making any policy decisions.

Following the receipt of this letter, Greenland representatives met with the Bureau of Minerals and Petroleum (BMP) to further discuss the evaluation and assessment of the Kanefjeld project.

“The outcomes of the discussion between the company and BMP are now being reviewed by the government,” said Greenland MD Roderick McIllree on Tuesday.

“Given the short notice upon which the items have been presented for government discussion and the necessary considerations, the time table and outcome is yet to be determined.”

However, McIllree noted that the company anticipated further updates from the government in the coming weeks.

The Kvanefjeld multielement deposit is located near the south-west tip of Greenland. Prefeasibility studies indicate that the vast resources could sustain a large-scale, economically robust mining operation for decades.

The project could potentially supply 20% of global rare-earth element demand at low cost, owing to revenues from uranium and zinc.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.