Greenland Minerals and Energy (ASX: GGG) is a mineral exploration and development company, focused on unlocking the mineral riches of Greenland, one of the world’s last natural resource frontiers.
The company strategy is to identify large mineral deposits with the potential to underpin long term, economically robust mining operations.
Greenland Mineral's flagship project is Kvanefjeld, a multi-element deposit located near the southwest tip of Greenland. Through focused exploration, Kvanefjeld is rapidly growing to become one to the world’s largest undeveloped deposits of rare earth elements, uranium and naturally occurring sodium fluoride.
Greenland Minerals and Energy seeks JV partners in rare-earths project
Greenland Minerals and Energy Ltd (ASX: GGG) is fielding advances from parties seeking to partner in its $2.31 billion Kvanefjeld rare earths and uranium project in Greenland.
The Perth-based junior explorer Greenland Minerals said the project had the potential to be one of the world's largest rare earth mines, with a resource estimate of 4.9 million tonnes.
Managing director Roderick McIllree told AAP the capital cost estimate could fall to $1.4 billion, given that hefty contingencies had been incorporated in the $2.31 billion figure.
Mr McIllree said the company had about $9 million cash, which was sufficient to complete a feasibility study, followed by a definitive feasibility study (DFS).
It would then consider funding the project via a mix of 70 per cent debt and 30 per cent equity, he said.
The company may divest up to a 50 per cent stake in the project.
Mr McIllree said Greenland Minerals had held preliminary talks with four major potential partners from Europe and Japan and discussions would advance after the DFS was completed.
He said the company would favour parties that shared the junior explorer's aim of breaking China's stranglehold on the rare earth market.
China produces virtually all of the world's rare earths, which are in demand due to their use in electric cars, mobile phones and glass manufacturing.
Mr McIllree said Greenland Minerals aimed to ameliorate a supply shortage that would be exacerbated if China carried out its plan to ban exports of certain rare earths.
It had previously discouraged exports by imposing high taxes on exporting producers.
Mr McIllree said Greenland Minerals would seek a listing on the London Stock Exchange in late 2010 or early 2011.
