Greenland Minerals and Energy has taken a solid step towards development at its Kvanefjeld rare earths project in Greenland, signing an agreement with a Chinese state-owned group to cooperate in feasibility studies and apply for a mining licence.
Greenland Minerals said the memorandum of understanding, signed with China Non-Ferrous Metal Industry’s Foreign Engineering and Construction Co (NFC), would set a framework to develop the Kvanefjeld project, which is considered one of the world’s largest resources of both rare earths and uranium.
NFC is planning a 7,000 tonne per annum rare earth separation facility, through its subsidiary Guangdong Zhujiang Rare Earths Company.
The facility is designed to process concentrates of a similar composition to what will be produced at the Kvanefjeld mine.
The parties will work together to complete a feasibility study for Kvanefjeld and finalise a mining licence application.
Kvanefjeld is currently scheduled to enter the permitting phase later this year.
Greenland Minerals said the companies were also aiming to establish a strategic cooperation agreement and map out the structure of a business partnership.
“The creation of a full value chain will have Greenland Minerals well–positioned to commence marketing rare earths to end-users globally, and to secure offtake agreements,” Greenland managing director Roderick McIllree said in a statement.
“Greenland Minerals' vision for the Kvanefjeld project has included the establishment of an effective rare earth business, through combining the cost-competitive production of critical rare earth concentrates from Kvanefjeld with expertise and capacity in downstream rare earth separation.”
Mr McIllree said the company would increase its focus on the uranium aspect of the development with the rare earths business unit taking shape.
Greenland Minerals shares jumped 28 per cent following the news on the ASX today, closing trade at 18.5 cents.
