Greenland Minerals and Energy Ltd ("GMEL" or "the Company") is pleased to provide an update in regard to political developments in Greenland that relate to the Company's 100% owned Kvanefjeld multi-element project (rare earth elements, uranium, zinc).
On Wednesday 21st November the position of Greenland in regard to uranium policy was addressed in Greenland's parliament. A show of unanimous support was given from all political parties to fast-track an independent review to finalise the government driven, multi-year phase of information gathering on uranium production and associated issues. Importantly this review includes aspects that relate to Greenland's foreign policy, which is managed by Denmark.
The Danish foreign minister Villy Søvndal was present in Greenland and has indicated that Denmark will support Greenland in pursuing uranium production, but noted that it is Denmark's responsibility to ensure that international conventions, such as non-proliferation, are respected. Investigations are already underway in Denmark, led by the Ministry of Foreign Affairs, into foreign policy protocols that would be required to facilitate uranium production in Greenland.
This development is very significant in that uranium is slated to be a by-product of rare earth production from Kvanefjeld. By-product revenues are set to provide Kvanefjeld with a highly competitive cost structure and represent a major economic advantage over rare earth only operations. The development regarding uranium policy is therefore of major relevance to projected global rare earth supply, with Greenland positioning to play a key role.
The information campaign conducted by the Greenland Government has already generated a solid knowledge base to evaluate and effectively manage potential uranium production in Greenland. In addition to a compilation and dissemination of technical information, government and key stakeholder representatives have conducted visits to Canada to learn directly about the regulation and operation of uranium production, and the effective management of environmental and social impacts.
This latest political advancement follows a number of key licensing developments for the Kvanefjeld project over the last two years. In Greenland uranium is regulated at the license level, rather than under the Mining Act, and in late 2011 uranium was incorporated into GMEL's exploration license for Kvanefjeld. This effectively provides the Company with the right to apply for exploitation in accordance with Greenland's broader mining regulatory framework.
The show of support from all political parties highlights a coherent approach between GMEL and the Greenland Government in advancing Kvanefjeld toward mine development. In December, GMEL will be joining a Greenland Government delegation headed by Premier Kuupik Kleist on a visit to South Korea, organised through the Danish Embassy, as part of an ongoing engagement strategy with potential development partners.