Name and Location
Kvanefjeld multi-element project, Greenland.

Client
Greenland Minerals and Energy Limited (GMEL).

Project Description
The Kvanefjeld project contains one of the world’s largest undeveloped resources of rare-earth metals and uranium. It has an estimated resource of 6.6-million tons of total rare-earth oxides, including 250 000 t of heavy rare-earth oxides and 500 000 t of yttrium oxide, 350-million pounds of uranium oxide and three-billion pounds of zinc.

Studies conducted on the project have demonstrated its potential to be developed as a source of long-term, low-cost uranium supply and a large low-cost supplier of heavy and light rare-earth oxides.

GMEL is currently focused on a staged development strategy, with an initial mine throughput of three-million tons a year, expanding to six-million tons a year.

Processing will consist of a concentrator stage and a refining stage.

Value
The cost of the project has been reduced from $1.53-billion to $810-million. The mine and concentrator will cost $450-million and the refinery $360-million.

Duration
In the current project schedule, construction is expected to start in 2015, with first production in 2017.

Latest Developments
GMEL has signed a memorandum of understanding (MoU) with China Non-Ferrous Metal Industry’s Foreign Engineering and Construction (NFC) for the Kvanefjeld multi-element project.

The MoU sets out a framework of cooperation for both parties in aligning the rare-earth concentrate from the Kvanefjeld project with NFC’s rare earth separation experience and capacity.

The Chinese firm has a new 7 000 t/y capacity rare earth separation facility planned, with all approvals in place. Once completed, the facility will represent one of the world’s newest, largest-capacity and most advanced rare earth separation facilities.

Under the terms of the MoU, both parties will increase their technical contributions to assist in completing the feasibility studies on Kvanefjeld, and finalise a mining licence application.

The timing is important, as the technical exchange is designed to ensure that Kvanefjeld and NFC’s new separation facility are optimally aligned.

Both parties are aiming to establish a strategic cooperation agreement and map out the structure of a business partnership and commercial considerations.

Greenland notes that the creation of a full value chain will have Greenland well-positioned to start marketing rare earths to end-users worldwide and secure offtake agreements.

Key Contracts and Suppliers
SRK Consulting and Coffey Mining (resource definition and mine plans); Amec Minproc, Ansto, SGS Lakefield Oretest, CSIRO, ALS Ammtec and Mintek (metallurgy and process development); Coffey Environments, Orbicon and Grontmij (environmental- and social-impact assessment); and Amec Minproc and Niras (plant engineering design, infrastructure and capital development).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Greenland Minerals and Energy, tel +61 8 9382 2322 or fax +61 8 9382 2788.
SRK Consulting, tel +1 604 681 4196, fax +1 604 687 5532 or email info@srk.com.
Coffey Mining and Coffey Environments, tel +61 2 9287 2100, fax +61 2 9287 2188 or email investor_relations@coffey.com.
Amec Minproc media relations manager Frank Stokes, tel +44 1452 872121 or email frank.stokes@amec.com.
Ansto, tel + 61 2 9717 3111 or fax + 61 2 9717 9210.
SGS Lakefield Oretest, tel +61 8 9209 8700.
CSIRO, tel +61 3 9545 2176 or fax +61 3 9545 2175.
ALS Ammtec, tel +61 8 9344 2416 or fax +61 8 9345 4688.
Mintek, tel +27 11 709 4111 or fax +27 11 793 2413.
Orbicon, tel + 45 44 85 86 87 or email Info@orbicon.com.
Grontmij, tel +44 113 262 0000/+44 845 074 2852 or email enquiries.uk@grontmij.co.uk.
Niras, tel +45 4810 4200, fax +45 4810 4300 or niras@niras.dk.