Home' Australian Resources and Investment : June 2014 Contents 118 • Australian Resources and Investment • VOLUME 8 NUMBER 2
The Kvanefjeld project is unique.
Ideally located among the
fjords of southern Greenland,
the project area offers direct year-
round shipping access, and has an
international airport nearby. The
mineral resources are world-class.
Drilling to date has established a 956
million tonne, JORC-code compliant
resource base that contains the world's
largest resource of both rare earth
elements and uranium in near-surface,
bulk ore bodies. Clear scope remains to
expand this resource base several fold.
Feasibility studies on Kvanefjeld are
well-advanced, with an advantageous
and highly effective metallurgical
ow sheet developed by a respected
technical team. A pre-feasibility study
on Kvanefjeld (2012) highlighted that
the project could be developed as a
long-life, cost-competitive specialty
metals project, with strong growth
potential. Subsequent studies have
reinforced the Company's con dence
in Kvanefjeld, with multiple revenue
streams standing to deliver a robust
economic mining operation.
Put simply, Kvanefjeld offers long-life,
highly scalable output of rare earths
and uranium at the low end of the
production cost curve. Market analysts
are increasingly acknowledging the
likelihood of a signi cant recovery in
uranium prices in the coming years.
Strong uranium prices would see a large
component of Kvanefjeld's operating
costs covered by uranium revenues,
making the project an extremely
competitive producer of critical rare
earths products, for which the demand
and pricing outlook is strong.
This aspect has been a signi cant
driver in generating a strong show of
interest from one of the world's most
established and respected groups in
rare earths re ning: China Non-Ferrous
Metal Industry's Foreign Engineering
and Construction Co. Ltd (NFC). NFC
represents an optimal development
partner for the Kvanefjeld project. Not
only is NFC's rare earths division a leader
in separation technology; it also has top-
tier EPC capacity, and is a subsidiary of
resource conglomerate CNMC, which is a
Fortune 500 company.
Together, GMEL and NFC are looking
to combine their strengths at the
respective ends of the rare earths value
chain to create a strong, fully integrated
supply business that markets to end
Kvanefjeld is now a priority project
for the Greenland Government, and
will be entering the permitting pipeline
at the start of 2015. In 2013, the
Greenland Government repealed a
longstanding uranium ban in order
to see Kvanefjeld progress into the
permitting phase. Since this decisive
move, Greenland and Denmark have
been working to establish a cooperation
agreement to manage and regulate the
production of uranium from Greenland.
This is slated for completion in 2014,
with Greenland's government being
positioned to commence processing
a mining licence application for the
Kvanefjeld project as of early 2015.
Greenland is aiming to be able to issue a
mining licence for the Kvanefjeld project
in early 2016. Importantly, this aligns
the schedule to complete outstanding
aspects of the feasibility program with
the permitting and regulatory process,
leaving a clear path forward to project
New growth in Greenland
Greenland Minerals and Energy Ltd (GMEL, or 'the Company') is positioned
at the forefront of Greenland's emerging minerals industry. The Company
has been operating in southern Greenland since 2007, with a primary focus
on the 100 per cent owned Kvanefjeld rare earths--uranium project.
Since 2007, drill programs conducted by GMEL have de ned the world's largest resource of rare earths
and uranium, ideally located with direct shipping access in southern Greenland. Kvanefjeld's vast resource
base, favourable metallurgy, and strong economic metrics have caught the attention of NFC; a world leader
in rare earth separation.
Ore dumps from the historic Kvanefjeld adit, which extends for almost one kilometre through the resource.
Kvanefjeld is a quality specialty metals project, 60 years in the making. Historic expenditure of greater than
US$50 million (today's dollars) by the Danish Government provided an excellent foundation for GMEL to
advance the project ef ciently through the feasibility program.
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