Greenland opens door to uranium exploration

Greenland Minerals and Energy can move ahead with its controversial rare earth and uranium mining project in Kvanefjeld near Narsaq following a Sept. 9 decision by the Greenland government to change its conditions for mineral exploration permits, reports Greenland’s Sermitsiaq newspaper.

The new rules give the Greenland government more scope to evaluate deposits, which contain radioactive substances— such as uranium, Sermitsiaq says.

“It is with great pleasure that Greenland Minerals and Energy A/S receives government’s decision to introduce new rules for exploration permits,” said a company statement.

Lars Emil Johansen, former premier Greenland who is chairman of Greenland Minerals and Energy, told Dow Jones Newswires that “it’s not permission to start mining, but it is permission to make studies for mines with uranium. It’s a very big step forward for the company.”

The company plans to carry out feasibility studies in 2011, which will look at the environmental, social, health and economic impacts of its mining project on Kvanefjeld.

When Greenland Minerals and Energy and its Australian-owned parent company, Greenland Minerals and Energy Ltd., start to look at the technical, environmental and social impacts of a mine at Kvanefjeld, these studies are expected to create about 30 jobs in Narsaq, Sermitsiaq says.

Preliminary studies show that Kvanefjeld probably contains one of the world’s largest deposits of the so-called rare earth metals, used in green technology, as well as zinc and uranium.

A prefeasibility study estimated the Kvanefjeld mine can produce 43,729 metric tonnes of rare earths and 3,895 tonnes of uranium a year during its 23-year lifespan and could meet 20 per cent of the world’s demand for rare earths, which are now mined mainly in China.

Earlier this year the municipal council of South Greenland voted in favour of supporting a change from Greenland’s zero‐tolerance uranium policy.

The council said that a final decision to mine in Kvaneflejd should be made based on the results of the definitive feasibility study and associated environmental and social impact assessments.