The project’s capital cost estimate has been reduced by 40% from US$832 million to US$505 million.
Capital cost estimate
The reduction in the capital cost estimate is the result of optimisation studies covering all elements of the project from the flowsheet to civil construction.
The results of individual optimisation studies have been the subject of progressive updates to the market since 2016.
READ: Greenland Minerals’ optimised Kvanefjeld feasibility study confirms increased recoveries, reduced costs
Greenland Minerals managing director Dr John Mair said: “With the completion of an outstanding optimisation program, we have a project with a smaller footprint producing more rare earths at lower operating costs, which requires significantly less capital for development.
“The 40% reduction in the capital cost estimate together with the increased projected output over an initial 37‐year mine life results in the lowest capital intensity amongst our peers.
“The optimised capital costs, when considered with operating costs after credits of below US$4/kg of rare earth oxide, creates a highly robust project and compelling development opportunity; a strong result for both company shareholders and project stakeholders.”
Greenland Minerals’ recent optimisation programs in the process plant have increased rare earth production by about 8% to about 32,000 tonnes per annum of rare earth oxides (REO).
The project is expected to be a major producer of rare earths, particularly the magnet metals ‐ neodymium, praseodymium, terbium, and dysprosium – which are critical to clean energy generation and efficient energy use.
Of the increased production about 6,000 tonnes will be magnet metals