Name of the Project
Kvanefjeld rare earths project.

Location
Kvanefjeld, southern Greenland.

Project Owner/s
ASX-listed Energy Transition Minerals (ETM). 

Project Description
The project is underpinned by the world’s biggest 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. It envisaged the production of 30 000 t/y of 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 three-million tonnes a year, adopted in the 2016 feasibility study.

The 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 earths 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 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
ETM has received a draft decision from the Greenland government indicating that the Ministry of Business, Mineral Resources, Justice and Gender Equality intends to recommend that the company’s application to renew exploration licence 2010/02 for Kvanefjeld be declined. ETM has stated that the draft decision states that continued exploration is no longer considered to serve a purpose because an exploitation licence could not be granted under the current legislative framework.

The company will respond to the draft decision and continue to pursue available legal avenues. The latest development follows the ongoing dispute over Greenland’s 2021 uranium mining legislation, which ETM has said prevented the project from progressing towards an exploitation licence. 
ETM’s website continues to note that arbitration proceedings are under way regarding its rights under the current exploration licence.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Energy Transition Minerals, tel +61 8 9382 2322 or email info@etransmin.com.