Greenland Minerals Limited (ASX:GGG) has achieved advanced permitting status at its 100%-owned Kvanefjeld Rare Earths Project and, with the support of major shareholder Shenghe Resources Holding Co Ltd (SHA:600392), is well on the way towards commercial development.
The company expects its environmental impact assessment (EIA) to be finalised shortly, with additional scoping studies on track for completion in March.
Additionally, the social impact assessment has been reviewed, updated and accepted for public consultation.
One-billion-tonne multi‐element resource
The project is a major new rare earth supply, consisting of a one-billion-tonne multi-element JORC resource including a 108 million tonnes ore reserve with an initial mine life of 37 years and the scope for expansion.
The company believes it will be a globally significant supplier of neodymium, praseodymium, dysprosium and terbium with uranium and zinc by‐product credits with competitive economic metrics with a long-life at the lowest cost quartile production.
Greenland Minerals has been working closely with Shenghe for the last three years to establish fully integrated supply chains to global end-users.
Part of this work has included project optimisation via Shenghe’s leading rare earth processing technology with test work conducted both in China and Australia.
Major improvements have been developed to both the flotation and refinery circuits.
The flotation circuit is now able to generate a higher grade, low-volume rare earths mineral concentrate and the use of a single-stage atmospheric leach refinery circuit has resulted in improved recoveries and a 40% reduction in annual operating costs.
The processing also resulted in unit costs of greater than US$4/kilogram rare earth oxides, net of by-product credits, which is the lowest of the undeveloped rare earth element projects in ASX listed companies.
Path to market
The Kvanefjeld project is well-positioned in Greenland, close to existing infrastructure and with year-round direct shipping access.
Now that processing has been optimised and permitting is underway, the company and Shenghe are developing a downstream processing, offtake and marketing strategy to take advantage of the looming rare earths demand surge.