viewGreenland Minerals Ltd

Greenland Minerals shares rise on reducing capital cost estimate for rare earth project

The Kvanefjeld Project is underpinned by the largest JORC‐compliant rare earth resource globally.

Greenland Minerals managing director Dr John Mair
The company’s shares are trading about 7% higher intra-day at 15 cents

Greenland Minerals Ltd (ASX:GGG) has revealed an updated capital cost estimate for its Kvanefjeld rare earth project in Greenland.

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.”

READ: Greenland Minerals’ shares rise as China escalates trade war using rare earths

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

Quick facts: Greenland Minerals Ltd

Price: 0.14 AUD

Market: ASX
Market Cap: $166.74 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Greenland Minerals Ltd named herein, including the promotion by the Company of Greenland Minerals Ltd in any Content on the Site, the Company...


2 min read