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Greenland Minerals and Energy welcomes new pro-mining government in Greenland

The company’s Kvanefjeld Project is envisaged to be a globally significant producer of rare earth materials
exploration team in Greenland
Rare earth elements are used in electric vehicle motors

Greenland Minerals and Energy Ltd (ASX:GGG) is expected to benefit from the policies of the new coalition government in Greenland, following the national election on April 24, 2018.

The Siumut Party, which led the incumbent government, won the most votes and has formed a coalition with three minority parties - Partii Naleraq, Atassut, and Nunatta Qitornai.

Kim Kielsen, head of the Siumut Party, will continue as Greenland premier.

Clear support for rare earth production

The coalition agreement articulates a clear position of support for the mining industry and a desire for Greenland to be an attractive destination for foreign investment.

Importantly, the coalition agreement outlines a clear position of support for rare earth production and associated uranium by-production.

Greenland Minerals’ Kvanefjeld Project is envisaged to be a globally significant producer of rare earth materials, in addition to by-production of uranium, zinc and fluorspar.

READ: Greenland Minerals and Energy progressing US$1.59 billion clean energy project

Kvanefjeld is one of the world's largest rare earth and uranium projects with a resource of over 1 billion tonnes containing 11.1 million tonnes of rare earth oxide and 593 million pounds of uranium.

Through 2017 a main point of focus has been on project permitting and finalising the environmental and social impact assessments.

These key documents will be finalised in June and lodged with the government prior to a public consultation period.

A supportive pro-mining government sets the scene to effectively move through the next steps in the permitting process, and gain project approvals.

Essential rare earth elements for electric motors

The Kvanefjeld project is forecast to be the largest producer of key rare earth elements for electric vehicles.

These include neodymium, praseodymium and dysprosium which are essential to high-powered permanent magnets used in electric drive motors.

Prices of neodymium and praseodymium have been rising on the back of strong demand and tightening supply.

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