Name and Location
Kvanefjeld multi-element project, Greenland.

Client
Greenland Minerals & Energy Limited (GMEL).

Project Description
The project comprises several large multi-element deposits rich in rare-earth elements, uranium and zinc. Collectively, these deposits represent one of the world’s largest identified mineral resources of rare earths and uranium.

The feasibility study schedule completed on the project in 2015 outlined a 37-year mine life, including three years of production ramp-up.

Kvanefjeld has a total resource base of 1.01-billion tonnes, containing 593-million pounds of uranium and 11.14-million tonnes of total rare-earth oxides. Measured resources are estimated at 143-million tonnes.

The feasibility study completed on the project evaluated the development of a mine, a concentrator, a uranium and rare earths refinery, a rare earths separation plant for lanthanum and cerium, sulphuric and hydrochloric acid plants, a power plant, new port facilities, and accommodation village, roads and logistics, as well as water supply and utilities, treating three-million tonnes of ore a year.

The operation will produce critical rare earths and by-products of uranium oxide, lanthanum and cerium, as well as zinc concentrate.

Mining operations will be opencast, using standard drill-and-blast and truck-and-shovel methods.

This has been selected as the lowest- operating-risk mining method in terms of cost, productivity, mining zinc concentrate and fluorspar.

At the end of 37 years, the pit remains in ore and there is considerable potential to increase the mine life.

Two open satellite deposits also remain for development, and present the opportunity to target specific elements – uranium, dysprosium, neodymium – based on market conditions.

Meanwhile, GMEL has made some material technical improvements to the project in the updated feasibility study released in April this year, which have allowed it to update Kvanefjeld’s economic metrics.

Net Present Value/Internal Rate of Return
The project’s net present value has increased from $1.4-billion, at an 8% discount rate, in the 2015 feasibility study to $1.59-billion, at a 10% discount rate, in the updated feasibility study.
The internal rate of return has increased from 21.8% to 43.4%, while the payback period has decreased from six to five years.

Value
The 2015 feasibility study estimated a capital requirement for the project of $1.36-billion. This has decreased to $831.9-million in the updated feasibility study.

Duration
Not stated.

Latest Developments
The Kvanefjeld feasibility study update has demonstrated a robust, high-value rare earths and uranium project, with extensive upside owing to the substantial mineral resource inventory.

With pilot plant operations completed on the concentrator and refining circuits, Kvanefjeld is one of the world’s most advanced rare earths and uranium projects.

Conservative pricing assumptions demonstrate the viability of the project, even in a low-price environment.

GMEL has indicated that the project stands to be a stable, long-term, low-cost supplier of materials essential to clean energy generation and energy efficient technologies.

Few other rare earths projects allow for simple processing using flotation, followed by an atmospheric acid leach, and can also allow for the additional production of all four rare earths critical to the permanent-magnet industry – neodymium, praseodymium, dysprosium, terbium – in market-relevant proportions. The uranium output stands to provide a stable revenue stream to significantly strengthen project economics.

Meanwhile, the Greenland government has made substantial efforts in establishing a regulatory framework in which a project that includes uranium production can be permitted and operated in accordance with international best practice. This has included negotiating and reaching formal agreements with Denmark on uranium regulation.

These developments have allowed the permitting process to progress and clears the path for advancing commercial discussions with strategic partners and offtake agreements.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
GMEL, tel +61 8 9382 or fax +61 8 9382 2788.