With its flagship Kvanefjeld rare earth project positioned to be a future cornerstone to global rare earth supply, Greenland Minerals Limited (ASX: GGG) is an Australian explorer with its focus on acquisition, exploration, and development of its license area in Greenland.
GGG has been one of the most discussed stocks amidst ASX-listed mining groups, catalysed by the globally significant technology metal project with key focus on mineral exploration and project evaluation during 2019.
The GGG stock is currently trading at $0.105, up 5% with a market cap of $119.1 million and approximately 1.19 billion shares outstanding (as at 3:41 PM, 21 October 2019). In the last 6 months, the stock has delivered a decent return of 40.85% with a YTD return of 47.06%.
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In this article, we would dive deeper into Greenland Mineral’s Community, which constitutes of 3 elements: Greenland, Narsaq and Stakeholders.
Primarily famous for icebergs, glaciers and ice sheets, Greenland has been receiving ample attention as a prospective global mining frontier. With main industry being fishing, Greenland is the world’s largest island where mining activities have been taking place since the 1800s.
Industry experts believe that this prospective under-explored emerging mining destination is rich in rare-earth minerals.
The climate and environmental alterations have made it easier to access the land area for exploration. Moreover, with increased demand for rare-earth minerals especially for electric vehicles, military technology and gadgets, interested industries have been willing to take advantage of Greenland’s strategic geopolitical location.
The island is home to Greenlandic people who have a strong mix of early European migrants. Over one-tenth of locals are Danish and speak Greenlandic with Danish and English as second languages.
Besides, the Greenlandic government offers lucrative opportunities to attract mining investment including lower corporate tax as well as dividends tax, convenience in foreign ownership, as well as an efficient exploration licencing process.
The town of Narsaq, located in southern Greenland, is around 8km south west of the Kvanefjeld Project. It is part of the Kujalleq municipality and has a population of around 1,550.
The location of the town is lucrative, with access to year-round shipping and the Narsarsuaq International Airport.
In the early 1900’s, geological mapping specified that extremely rare rocks and minerals were present in the area, and the foremost key expansion of industrial/economic activity occurred shortly post the World War II concluded, when people assembled to work at the cod processing plant and slaughterhouse from across Greenland.
Adding on flavour to the town’s mineral development, in 1955, the Danish Atomic Energy Commission identified uranium enrichment, which is the current day’s Kvanefjeld deposit, where technical studies were conducted for years. An 860m adit drove through the middle of the resource with the intent to source bulk sample material for trial mining purposes.
However, in 1983, the work at this deposit was put on a halt on grounds of non-exploitation of the uranium resources at Kvanefjeld.
Between 2007 and 2011, in 5 seasons at the Kvanefjeld deposit, the Company completed 60,000m of drilling and inter-related activities and collected vast environmental data. Furthermore, social, economic and environmental studies concerning the project were also completed.
GGG believes that a strong relationship with the community is critical. Obtaining and maintaining a license to operate is central to the Company’s business strategy, and is consistent with the expectations of its stakeholders, the third element of GGG’s Community.
GGG has developed a relationship with its stakeholders based on a partnership model of engagement which involves consultation, transparency, participation, support and respect.
The economic, environmental and social considerations are integrated, thereby aiding GGG in managing its business, while the objective to deliver long-term benefits to all stakeholders remains firm.
The Company is an engaged member of the local community and aims to support the development of a resilient local community through infrastructure development and career and business opportunities.
Community open days, stakeholder workshops, public meetings/forums, individual stakeholder meetings, presentations to the Mining School at Sisimuit and skills training with drill crews during drilling campaigns constitute few engagement forms of GGG.
On the environmental front, GGG aims to operate in accordance to the best principles of sustainable development, while minimising waste and maximising recycling.
Greenland Minerals is optimistic of its potential to successfully develop the project as a multi element rare earth and uranium project. The Company is working with Greenland’s Government and stakeholders to advance the mining license application and push towards development.
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