Globally Significant Greenland Minerals Fostering Rare Earths Realm

Raw material diplomacy has commenced, and rare earths (RE) truly represent the clean energy future with increasing demand across electric vehicles, aerospace, health care, chemicals, glass and electronics industry. Rightly referred to as critical minerals, they are vital for society’s development especially in the contemporary times when technological advances are making headlines across the globe.

Tapping this lucrative opportunity is Australia-based Greenland Minerals Limited (ASX:GGG), which is operating in Greenland since 2007. The Company is developing the Kvanefjeld RE Project in south west Greenland, which is positioned to be a future cornerstone to global RE supply.

GGG’s primary focus, the Kvanefjeld Project is a specialty metal project of global significance. Capable of becoming the most significant western world producer of RE, the Project is likely to be a large-scale, low-cost, long term supplier of products once developed. These products are expected to be at the centre of the unfolding revolution in the efficient use of energy.

GOOD READ- Greenland Minerals Ends December 2019 Quarter Positively, Kvanefjeld Rare Earth Project Advances Towards Development

The Project has several unique attributes, summarised below-

Recent Developments at Kvanefjeld

Since 2007, GGG has been licensed to mine the RE domain in Kvanefjeld. Let us look at a few developments at the Project that demonstrate that the Company is on the right the path of delivering a world-class RE Project-

• The test work programmes have resulted in a significant 40% reduction in both the capital and operating cost estimates of the Project
• Unit costs of less than US$4 per kg of REO marks the lowest of undeveloped REE projects in ASX listed players.
• The Project’s Environmental Impact Assessment was reviewed by the Government of Greenland’s (GoG) Environmental Agency for Mineral Resource Activities, and GGG is on a verge to roll it out for public consultation. An updated version including supplemental studies is due to be lodged with the GoG in late Q12020.
• GGG made good technical progress at the Project, with successful test work to remove uranium, thorium and other radionuclides from the RE intermediate product to purify it. The results are due in Q120.
• With the EU approving a classification system (unified) for a climate neutral economy and promoting private investment in sustainable growth, Kvanefjeld Project has solid economic metrics, minimal capital intensity and operating costs.
• The role of Shenghe Resources has been instrumental in the Project’s development in terms of supporting the management, maximising the potential and doubling the value of the Project.
• Strong stakeholder engagement with local community adds to the company’s growth story.

GOOD READ- Greenland Minerals Advancing Well at the Emerging World-Class Kvanefjeld RE Project

Shenghe Resources- A Winning Strategy

Chinese company Shenghe is the world’s second-largest producer of RE, GGG’s largest shareholder and strategic partner since 2016. It has a strong bent towards global markets with international customer network across Europe, North America, Japan, the Middle East and China.

Advancing its international strategy, while aiming to secure access to RE resources outside of China and facilitate long term growth opportunities, Shenghe surveyed over 60 RE projects in the world and chose Kvanefjeld for its unique, special and advantageous metallurgy.

Shenghe represents a very solid development partner for the Project as it offers a global customer network, leading processing technology, and a strong balance sheet.

Recently, Shenghe’s Chairman, Mr Hu Zesong presented in Copenhagen, at the Confederation of Danish Industry’s Greenland conference to intimate about the Shenghe’s global growth strategy and discussed the RE sector outlook along with Kvanefjeld’s strategic role.

GOOD READ- Greenland Minerals Presents Kvanefjeld Project Significance At PDAC Mining Conference, Stock Up ~10%

Team Driving GGG’s Growth

The Company is driven by experience and skills from its Directors and Management-

GOOD READ- Greenland Minerals: Meet The Team Driving Kvanefjeld Rare Earth Project Development

Catalysed by a lucrative Project location, increasing demand of RE, robust support from a well-established partner and community, lowest quartile production costs and a driven team, GGG appears to be on the right growth trajectory to meet RE demand surge. With updates on EIA and technical results awaited in the future, market participants are closely eyeing developments at GGG.

The stock traded at $ 0.070 on 13 March 2020 (1:53 PM AEDT).

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