Greenland Minerals Ltd (ASX:GGG) has delivered a 44% reduction in estimated civil construction costs for its Kvanefjeld Rare Earth Project in Greenland to US$175 million from US$313 million in its 2016 feasibility study.
The estimated cost reduction is part of an optimisation program that has involved inputs from leading industry specialist groups.
The group of specialist engineering firms was tasked to review civil design optimisation and utilisation of local site aspects.
The information gained from a multi‐disciplinary field trip in August 2018 provided inputs into optimisation design studies and cost estimation.
Project development specialist Nuna Logistics provided the updated civil cost information for the Kvanefjeld Project based on the site survey.
Cost reductions were primarily achieved through substantial reductions in civil earthworks for site preparation, updated port design by specialist groups and greater use of local materials.
Process plant optimisation
Process plant optimisation addressed both the concentrator circuit and refinery circuit. This was a technical collaboration with Shenghe Resources Holding Co Ltd and leading Chinese technical institutes.
The work is nearing completion with validation of the new concentrator performance being made in current metallurgical test work.
Major improvements to the performance of both the concentrator (flotation) and refinery circuits have already been achieved.
Greenland Minerals has completed an updated process engineering design of the concentrator which includes the production of a high‐grade concentrate.
Improvements to the refinery flowsheet are also being incorporated into an optimised process design.
Notably, the increase in concentrate grade will reduce the size of processing equipment required in the refinery.
Optimised cost estimation
Greenland Minerals will provide further updates on the capital and operating costs in Q2, which will be an optimised version of its 2016 feasibility study.
The optimised update will incorporate outputs from the technical collaboration with Shenghe Resources.