Name and Location
Kvanefjeld multi-element project, Greenland.
Client
Greenland Minerals and Energy Limited (GMEL).
Project Description
GMEL has completed a feasibility study on the Kvanefjeld project.
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.
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 base case study evaluates the development of a mine, mineral concentrator, a refinery and supporting infrastructure, located in Greenland, treating three-million tonnes a year of ore.
The project includes a mine, a concentrator, a uranium and rare earths refinery, a rare earths separation plant for lanthanum and cerium separation, sulphuric and hydrochloric acid plants, a power plant, new port facilities, and accommodation village, roads and logistics, as well as water supply and utilities.
The operation will produce critical rare earths and by-products of uranium oxide, lanthanum and cerium products, as well as zinc concentrate.
Mining operations will be opencast using standard drill/blast/truck/shovel methods. This has been selected as the lowest operating-risk mining method in terms of cost, productivity and mining zinc concentrate and fluorspar.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.4-billion and an internal rate of return of 21.8%.
Value
The project will cost an estimated $1.36-billion.
Duration
Not stated.
Latest Developments
GMEL is aiming to complete the environmental- and social-impact assessments in the third quarter of 2015, and will subsequently lodge an exploitation licence application with the Greenland government.
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.