Name of the Project
Kvanefjeld rare earths project.

Location
The project is located in Kvanefjeld, in southern Greenland.

Project Owner/s
Greenland Minerals. Shenghe Resources has acquired a 12.5% interest in GMEL.

Project Description
The Kvanefjeld project is underpinned by the world’s largest code-compliant rare earths resource.

The outcomes of a feasibility study in 2016 demonstrated the potential of the project to be developed as a large-scale, low-cost producer of rare earths. The feasibility study envisaged the production of 30 000 t/y rare-earth oxide (REO) at a processing rate of three-million tonnes a year.

An optimised feasibility study was completed in May 2019, showing recovery improvements across the light and heavy rare-earth elements.

The increased recoveries will result in the production of 32 000 t/y REO at the processing rate of three-million tonnes a year adopted in the 2016 feasibility study.

The improved rare-earth recoveries have increased the projected output of commercially important rare earths to 4 260 t/y for neodymium oxide, 1 420 t/y for praseodymium oxide and 270 t/y for dysprosium oxide.

Average by-product output includes 451 t/y of uranium oxide, 6 060 t/y of zinc concentrate and 12 417 t/y of fluorspar. The increase in rare-earth recoveries is primarily owing to the design of a single-leach stage, which results in fewer solid/liquid separation stages. Each separation stage results in minor rare-earth losses. Kvanefjeld is well positioned to be a significant contributor to global rare-earth supply for an initial 37-year period, based on a 108-million-tonne ore reserve.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2016 feasibility study estimated the project’s net present value at $1.59-billion, at a 10% discount rate. The internal rate of return is 43.4% with a payback of five years.

Capital Expenditure
The projected capital cost for the Kvanefjeld rare earths project has been reduced by an estimated 40%, from $832-million to $505-million. This reduction resulted from optimisation studies covering all elements of the project, from the flowsheet to civil construction.

Planned Start/End Date
Not stated.

Latest Developments
Greenland’s government has extended the public consultation period for the Kvanefjeld rare earths project until June 1.

The extension will result in a 23-week consultation period, instead of the originally determined 12 weeks.

The company has said that the logistical constraints caused by the Covid-19 pandemic have created increased logistical challenges in holding public meetings and information forums, while government has also closed its borders from February 1 to February 28, imposing further limitations for specialist advisers and independent experts to participate in the consultation.

Further, municipal elections are also planned for April, which will affect the consultation process.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
GMEL, tel +61 8 9382 or fax +61 8 9382 2788.