Name of the Project
Kvanefjeld rare earths project.

Location
Kvanefjeld, in southern Greenland.

Project Owner/s
ASX-listed Greenland Minerals, a subsidiary of Energy Transition Minerals. Shenghe Resources has acquired a 12.5% interest in the company.

Project Description
The Kvanefjeld project is underpinned by the world’s biggest 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 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. This reduction resulted from optimisation studies covering all elements of the project, from the flowsheet to civil construction.

Planned Start/End Date
Not stated.

Latest Developments
Energy Transition Minerals has been granted a three-year renewal of the exploration licence covering its Kvanefjeld rare-earth element project.

Greenland’s Mineral License and Safety Authority has confirmed that the Act banning uranium prospecting, exploration and exploitation does not apply to the renewal of the Kvanefjedld exploration licence.

Energy Transition Minerals was placed in a difficult situation in 2021 with the passing of the Act, which made the development of its Kvanefjeld project more costly. The company had previously said that while uranium was not of great economic significance to the Kvanefjeld project, the revenues generated by the uranium and other by-products would serve to reduce the rare earth production costs.

The company was told that it would need to apply for an exploitation licence for the project, and that the Act would apply.

The company turned to an arbitration process through its subsidiary Greenland Minerals to determine whether the Act should apply to the project.  

Energy Transition Minerals has said the company’s preparation for a statement of claim to the Arbitration Panel is well advanced, with a meeting set for July 19.

The company’s preparation includes detailed legal arguments, witness statements and other evidence supporting the claims, as well as independent expert reports. The independent expert reports are being prepared specifically for the purpose of forming part of the company’s Statement of Claim.

Key Contracts, Suppliers and Consultants
None stated.

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