Join our daily newsletter At The Bell to receive exclusive market insights
- Rare earth explorer Greenland Minerals (GGG) has surpassed another milestone on the pathway to mining the huge Kvanefjeld rare earth project
- In Greenland, prospective miners have to have a detailed mineral resource and feasibility reports prepared before they’re granted a licence to dig
- Greenland’s Ministry of Mineral Resources and Labour engaged Auralia Mining Consultants to conduct the evaluation, based on GGG’s mineral resource and feasibility reports
- The government tick of approval brings Greenland Minerals one step closer to first production at Kvanefjeld
- The company does still have a few weeks left to wait for the review of its environmental impact assessment but anticipates a positive outcome
- Greenland Minerals is up 9.5 per cent to 11.5 cents per share
Rare earth explorer Greenland Minerals (GGG) has surpassed another important milestone on the pathway to mining the huge Kvanefjeld rare earth project in Greenland.
Boxes ticked
Under Greenland’s Mineral Resources Act, one of the main hurdles in receiving a mining licence is having effective documentation of a deposit of exploitable minerals in the license area. Simply put, any wannabe miner has to have a detailed mineral resource and feasibility reports prepared before they’re granted a licence to dig.
When it comes to resource reporting, the estimates must be in at least the ‘indicated’ category as per the Australian JORC Code in order to be considered sufficient for the granting of a mining licence.
At Kvanefjeld, the estimates are in the ‘measured’ category – comfortably surpassing government requirements.
Greenland’s Ministry of Mineral Resources and Labour engaged Auralia Mining Consultants to conduct the evaluation, based on the mineral resource and feasibility reports mostly conducted by SRK Consulting.
With this approval, Greenland is now one step closer to turning the first soil on the project.
High hopes
If and when GGG is granted final approval to commence operations at Kvanefjeld, the company stands to be one of the biggest players in the global rare earth market.
The resource is huge, to say the least. Estimates give the mine a 37-year lifespan, with a 1 billion tonne mineral resource, and a 108 million tonne ore reserve.
The company projects Kvanefjeld will be a globally significant producer of all commercially important rare earth elements including neodymium, praseodymium, terbium and dysprosium. These are predominately used to make permanent magnets for electric vehicles, among other applications.
As the world progressively transitions toward electric cars, Greenland Minerals is hoping to be at the vanguard of the rare earth surge.
Having received the government tick of approval for its resource reporting material, GGG is now a step closer to getting its hands dirty at Kvanefjeld.
The company does still have a few weeks left to wait for the review of its environmental impact assessment, but if all goes well, GGG will be well on the way to first production.
Greenland Minerals is up 9.5 per cent to 11.5 cents per share as at 3:45 pm AEST.
