Greenland May Reject The Application For The Kvanefjeld Rare Earth Project License.

HOUSTON, April 7 (Argus) - Australian exploration company Energy Transition Minerals (ETM) said that the government of Greenland may reject its application to renew the exploration license for the Kvanefjeld project. The Kvanefjeld project contains large deposits of neodymium and praseodymium, with estimated mineral resources of 1.14 million metric tons of rare earth oxides. According to ETM, the government's draft decision stated that the exploration activities "are no longer considered purposeful because the project cannot obtain a mining license under the current legislative framework." The company said its reasoning was based on Act No. 20 of the Greenland Parliament in December 2021, the 2021 Uranium Act, which limits mining projects with an average uranium content of more than 100 ppm in the total resources. ETM said that the uranium content of the Kvanefjeld ore body is 360 ppm. ETM is filing legal actions against the Greenland and Danish governments, accusing them of violating the contract and demanding compensation of $7.5 billion in losses, and seeking $4 billion in pre-interest rewards for the losses suffered and to be suffered by its subsidiary Greenland Minerals since 2007 in the development of the project. ETM stated that the company is in contact with the Greenland authorities and will respond to the draft decision at an appropriate time.