Greenland Minerals Ltd (GML) (ASX:GGG) has signed a tripartite MOU with the aim of finalising a Participation Agreement to advance the Kvanefjeld Rare Earth Project in southern Greenland towards development.
The MOU with Kommune Kujalleq and the Kujalleq Business Council establishes the intention of the parties to conclude the agreement, which would support and supplement an Impact Benefit Agreement (IBA).
Mining licence process
The IBA will form part of a mining licence application for GML’s flagship project which contains rare earth elements, uranium and zinc.
GML’s chief executive officer John Mair said the MOU was evidence of community support for the project and the company was pleased that another important step along the development path had been taken.
Kommune Kujalleq is the municipal authority for the region of southern Greenland which includes Narsaq and the Kvanefjeld project areas.
Kujalleq Business Council is the local organisation representing the local workforce and businesses.
In the MOU, which was signed at the PDAC convention in Toronto this week, the three parties have agreed to a timeframe and a process for negotiating a Participation Agreement.
This would cover community capacity development in terms of needs identification and skills development for the local workforce and businesses.
The parties have also agreed on the importance of sharing knowledge about local culture and land use practices with the projected influx of project workers.
Kvanefjeld has the potential to become a long-life, low-cost and large-scale producer of rare earth elements.
GML is working closely with major shareholder and strategic partner Shenghe Resources Holding Co Ltd to develop the project.
Comments from mayor
Kommune Kujalleq Mayor Kiista P Isaksen said: “The Kommune has observed the work of GML at Kvanefjeld for many years.
“We do not just want to sit with our hands in our lap while others from outside secure contracts with Greenland Minerals.
“We would like to participate as soon as possible once Greenland Minerals obtains an exploitation permit.”
Potential for local business
Kujalleq Business Council chairman RC Rasmussen said: “The local business community and workforce has significant potential to participate in supplying labour, services, and supplies to Kvanefjeld.
“The Participation Agreement will provide a planning framework to ensure all reasonable opportunities are identified and exploited for the benefit of all parties.”