Name of the Project
Kvanefjeld rare earths project.

Location
Greenland.

Project Owner/s
Greenland Minerals & Energy Limited (GMEL). Shenghe Resources has acquired a 12.5% interest in GMEL.

Project Description
The Kvanefjeld project is underpinned by the world’s largest code-compliant rare earths resource.

The outcomes of a feasibility study in 2016 demonstrated the potential of the project to be developed as a large-scale, low-cost producer of rare earths. The feasibility study envisaged the production of 30 000 t/y rare-earth oxide (REO), at a processing rate of three-million tonnes a year.

An optimised feasibility study was completed in May 2019, showing recovery improvements across the light and heavy rare-earth elements.

The increased recoveries will result in the production of 32 000 t/y REO at the processing rate of three-million tonnes a year adopted in the 2016 feasibility study.

The improved rare-earth recoveries have increased the projected output of commercially important rare earths to 4 260 t/y for neodymium oxide, 1 420 t/y for praseodymium oxide and 270 t/y for dysprosium oxide.

Average by-product output includes 451 t/y of uranium oxide, 6 060 t/y of zinc concentrate and 12 417 t/y of fluorspar. The increase in rare-earth recoveries is primarily owing to the design of a single-leach stage, which results in fewer solid/liquid separation stages. Each separation stage results in minor rare-earth losses. Kvanefjeld is well positioned to be a significant contributor to global rare-earth supply for an initial 37-year period, based on a 108-million-tonne ore reserve.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2016 feasibility study estimated the project’s net present value at $1.59-billion, at a 10% discount rate. The internal rate of return is 43.4%, with a payback of five years.

Capital Expenditure
The projected capital cost for the Kvanefjeld rare earths project has been reduced by an estimated 40%, from $832-million to $505-million.

The reduction in the capital costs estimates resulted from optimisation studies covering all elements of the project, from the flowsheet to civil construction.

Planned Start/End Date
Not stated.

Latest Developments
Not stated.

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.