ASX listed Greenland Minerals now has a formal means for the Chinese processing of its rare earth concentrates from the massive Kvanefjeld project in southern Greenland, that also contains the radioactive elements uranium and thorium.
This follows its largest shareholder Shenghe Resources Holding forming the China Nuclear Hua Sheng Mining joint venture with subsidiaries of China National Nuclear Corporation, or “CNNC”.
Hua Sheng will be the designated agent for Shenghe for the import, export and trading of rare earth materials and products that carry radionuclides, which are common constituents of rare earth rich minerals and concentrates. Hua Sheng will be authorised by the relevant Chinese ministries and commissions to undertake these activities.
Notably, Hua Sheng provides an authorised means for the receipt, processing, and separation of rare earth elements from radioactive materials imported into China from Shenghe’s overseas rare earth resources.
CNNC also brings additional technical knowledge relating to the complex metallurgical separation of radionuclides from rare earth elements into the joint venture arrangement.
Shenghe and CNNC will also co-invest in processing facilities for the treatment of imported rare earth minerals into China.
Greenland Minerals entered into a non-binding MoU with Shenghe in August last year for the offtake of all rare earth element production from the Kvanefjeld project in either chemical or mineral concentrate forms.
Managing Director Dr John Mair said: “The rare earth sector continues to evolve rapidly and Shenghe’s participation in Hua Sheng Mining along with CNNC creates a company that is authorised to import and process rare earth minerals and products enriched in radioactive elements.”
“Shenghe’s association with CNNC provides further technical and regulatory support that will benefit the Kvanefjeld project.”
Kvanefjeld has a mineral resource inventory of 1.01 billion tonnes containing 11.14 million tonnes total rare earth oxides, 593 million pounds of uranium and 2.25 million tonnes of zinc.
The project is expected to be one of the largest global producers of the sought-after key magnet rare earth metals, neodymium, praseodymium, dysprosium and terbium, once in operation
Earlier this month, flotation circuit test work completed by China’s BTMR Laboratories optimised the metallurgical flowsheet for the Kvanefjeld ore stream, leading to recoveries in excess of 80% and impressive concentrate grades exceeding 22% rare earth oxide content.
This is well above the 14% rare earth oxide concentrate grade used in Greenland’s Kvanefjeld feasibility study and bodes well for the operation’s future economic performance.
