PERTH (miningweekly.com) – ASX-listed Greenland Minerals on Wednesday said that it was seeking consultation with the new Greenland government following the national election in April.
The new coalition government, which consists of the Inuit Ataqatigiit and Naleraq parties, has publicly stated a political intention to cease the development of Greenland Minerals’ Kvanefjeld rare earths project, due to the presence of uranium as a by-product.
While Kvanefjeld’s development strategy is focused on the production of rare earths, it also incorporates the by-production of zinc, uranium and fluorspar, with the uranium occurring at relatively low grades compared to most primary uranium mines.
Greenland Minerals has previously noted that while the 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 told shareholders on Wednesday that the company has sought legal advice regarding its rights to continue the development of the Kvanefjeld rare earth project, and would continue its public consultation process for the project.
The consultation period is expected to last until June 1.