26 Jul Greenland Minerals pledges to fight Greenland government ban on rare earths mine
ASX-listed Greenland Minerals is determined to challenge a decision by the Greenland government to reject a mining permit for the company’s Kvanefjeld rare earths project.
In November 2021, Greenland announced a nationwide ban on the exploitation and exploration of uranium, which would be produced as a by-product from mining rare earths at the vast Kvanefjeld project.
Greenland Minerals launched arbitration proceedings against the governments of Greenland and Denmark in March for the legislation, which limits uranium percentages in total rare earth oxide mining to 100 parts per million.
The company argues the ban hampers exploration and production of key critical metals, including rare earths, which will be needed in much greater quantities to meet global carbon emission reduction targets.
Managing director Daniel Mamadou said the draft mining permit rejection was at odds with Greenland’s stated policy to be a significant player in the energy transition.
“We are also frustrated by the approach taken by the government regarding our dispute: although, the parties had agreed to solve their disagreements through arbitration, it is now clear that the government wants to implement a different approach,” Mamadou said.
The government will make a final decision after a consultation process on the draft resolution, according to the company.