Greenland Minerals and Energy Ltd (ASX:GGG) has participated in the Arctic Circle Greenland Forum at the invitation of the Premier of Greenland and the President of Iceland.
Government support for the company's development of the Kvanefjeld rare earth and uranium project in Greenland will be integral to its development.
Dr John Mair, managing director of Greenland Minerals, participated as both a presenter and panellist in the session that addressed natural resource development in the Arctic.
The Arctic Circle Forum aims to strengthen the international focus on the future of the Arctic.
Greenland has placed a major focus on moving toward a greater emphasis on natural resource development to diversify, grow, and strengthen its economy.
Kvanefjeld is amongst the higher profile mineral resource projects in the Arctic region.
In recent months, Greenland has made significant advances to its regulatory framework in order to effectively manage the production and export of uranium.
Uranium stands to be a by-product of specialty metal production from Kvanefjeld.
These important developments represent the culmination of work programs conducted by the Greenland and Danish governments over recent years.
Recent feasibility study upgrade
Greenland Minerals recently updated the feasibility study on Kvanefjeld.
The net present value of the project increased from US$1.40 billion to US$1.59 billion and the internal rate of return increased from 21.8% to 43.4%.
Project financing was lowered significantly to US$831.9 million, initially forecast at US$1.36 billion.
The payback period is now 5 years instead of 6.
A mining license application for Kvanefjeld was submitted in late 2015 and the major reviews of key components are now advanced.
The company will provide further updates on the permitting schedule.
Greenland Minerals continues to progress with the support infrastructure strategy for the
In early March, the company signed a letter of intent to develop a power concept for the Kvanefjeld Project, based on hydropower.
Other third party infrastructure concepts to reduce capital costs are being sought for a port, accommodation for employees, power supply and supplies of key reagents.
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