Greenland’s new coalition government has hinted that it is ready to continue investing in Greenland Minerals and Energy (ASX:GGG).
The Siumut Party received the most votes in last month’s snap election and have since formed a coalition with the Demokraatic and Atassut parties. The Siumuts also fronted the previous coalition government, which voted last year to abolish its zero-tolerance uranium policy.
Party leader Kim Kielsen said after the election that their commitment to resource extraction and developing a stable environment remained unchanged.
Meanwhile, ASX:GGG remains focused on its study of how feasible it would be to extract uranium from Kvanefjeld. It also wants to complete its licence application for exploitation, or mining, in the region. The company is set to publish an update on its work in the coming weeks.
The feasibility study is looking at a mine, hydrometallurgical refinery and concentrator in Greenland that would handle three million tonnes of ore per year. It would produce 230,000 of rare earth mineral concentrate per year, which would contain 25 per cent U3O8 and 14 per cent REO.
If this mineral concentrate is refined, it is expected to produce around 7,000 tonnes of critical rare earths per year as well as 1.1 million pounds of U3O8 and 16,000 tonnes of light rare earths per year.
There are an estimated 956 million tonnes of resources in Kvanefjeld, with 575 million pounds of uranium and a further 10.33Mt total rare earth oxide.