Canadian developer Hudson Resources said on Monday that new anti-uranium legislation in Greenland would not impact on its rare earth element (REE) project, which contained only low levels of uranium.
The new legislation, passed on November 8, bans the development of mineral projects with a uranium content greater than 100 parts per million (ppm). The ban does not apply to prospecting, exploration and exploitation directed at non-uranium resources if the average uranium content is less than 100 ppm.
The passing of the legislation has left Australia-listed Greenland Minerals’ Kvanefjeld REE project in limbo, as it contains levels of uranium that exceed the threshold.
Hudson said its advanced ST1 Sarfartoq REE project contained low levels of uranium (10 ppm) and high levels of REEs neodymium oxide and praseodymium oxide, which were key elements needed for permanent magnets used in wind turbines and the motors in electric and hybrid vehicles.
“We are very excited about the future of the Sarfartoq REE project and the ability to be part of the critical metal supply chain into Europe and the Americas,” said Hudson president Jim Cambon.
A preliminary economic assessment for the Sarfartoq project, completed in 2011, highlighted a 31.2% internal rate of return; a 2.7-year payback on $343-million initial capital; $616-million pretax net present value, at a 10% discount rate; and a 21-year mine life.