PERTH (miningweekly.com) – The projected capital cost for the Kvanefjeld rare earths project, in Greenland, has been reduced by some 40%, from $832-million to $505-million, ASX-listed Greenland Minerals reported on Tuesday.
The reduction in the capital costs estimates resulted from optimisation studies covering all elements of the project, from the flowsheet to civil construction.
The studies also resulted in a projected 8% increase in rare earths production, which is now estimated at 32 000 t/y of rare-earth oxides, with Kvanefjeld estimated to have an initial 37-year mine life, based on a 108-million-tonne ore reserve.
“With the completion of an outstanding optimisation programme, we have a project with a smaller footprint producing more rare earths at lower operating costs, which requires significantly less capital for development,” said Greenland MD John Mair.
He noted that the 40% reduction in the capital cost estimates, along with the increased projected output over the initial mine life, resulted in the lowest capital cost intensity among Greenland’s peers.
“The optimised capital costs, when considered with operating costs after credits of below $4/kg of rare-earth oxide, creates a highly robust project and compelling development opportunity - a strong result for both company shareholders and project stakeholders.”