Greenland Minerals and Energy (ASX:GGG) requested a trading halt in its shares on the ASX on Friday morning 28th November 2008 when it became aware that newspaper articles in the Greenlandic press reported on the uranium debate in the Greenland parliament - before the company was able to seek official confirmation of the outcome due to time differentials.
The company is pleased to announce, after confirmation by its lawyers in Greenland that the parliamentary debate regarding uranium indicated in principle support towards easing the current zero-tolerance regulations with particular reference made to by-product production at the Kvanefjeld specialty metals project.
This comes just days after more than 75% of Greenlanders voted in favour ofSelf Governing. The company wishes to congratulate the citizens of Greenland on their new identity within the global community and is encouraged by the positive outcome of the debate process and sentiment towards our project.
In line with this, the Greenlands parliament has given strong in principle support for uranium production as a by-product of rare earths.
Kim Kielsen, Greenland's minister of infrastructure who has voiced strong support for uranium mining as a by-product, indicated that a public information program would seek to allay any local concerns for residents.
Proactive Investor's analysis of the Kvanefjeld project is that Greenland stands to benefit significantly from mining at Greenland Mineral's Kvanefjeld project. Greenland's economy is now almost entirely dependent on fishing, whaling and seal hunting, and heavily reliant on Danish subsidies. Unemployment is high and projects such as Kvanefjeld will assist to reduce unemployment of Greenlands residents.
The melting of the Arctic ice is making mining and drilling operations possible where they were not possible in the past. Greenland has large deposits of coal, diamonds, iron, zinc, uranium, rare earths and oil and gas. Revenues from which will allow Greenland to take control of large revenues from potential oil, gas and mineral finds which could reduce Greenland's economic dependence on Denmark. Greenlands Minerals is handily placed to assist and benefit from uranium production and given the large deposits of uranium involved at Kvanefjeld, upside is qantifiable and significant for all parties.
Greenland Minerals will now continue with its pre-feasibility study including resource definition and environmental assessment at Kvanefjeld.