Greenland Minerals Limited (ASX: GGG) announced that its largest shareholder Shenghe Resources Holding Co Ltd had established a joint venture company in partnership with the subsidiaries of China National Nuclear Corporation (CNNC). Shenghe will reportedly hold a 45% interest in the newly formed joint venture company, China Nuclear Hua Sheng Mining Ltd (Hua Sheng).Â
The Joint Venture will see Hua Sheng acting as a designated agent to Shenghe for the import, export, and trading of rare earth materials and products that carry radionuclides, typical constituents of rare earth rich minerals and concentrates. The company informed that Hua Sheng would be authorized by the relevant ministries and commissions in China to undertake these activities.
Greenland Mineralsâ Managing Director Dr. John Mair stated that the rare earth sector continues to evolve rapidly and Shengheâs participation in Hua Sheng Mining along with CNNC creates a company that is authorized to import, and process rare earth minerals and products enriched in radioactive elements.
Shenghe Resources will now have an authorized channel for the receipt, processing, and separation of rare earth elements from radioactive materials imported into China from Shengheâs overseas rare earth resources. That means Shengheâs involvement in Joint Venture Hua Sheng will establish a formal pipeline for the import of rare earth concentrates containing uranium and thorium into China. It will allow for further processing, subject to the conclusion of appropriate international safeguards arrangements by the responsible authorities covering the uranium and thorium component of the rare earth concentrate.
Last Year in August, Greenland Minerals inked a non-binding Memorandum of Understanding (MoU) with shareholder Shenghe that encompasses the offtake of total output of rare earth elements from Kvanefjeld in either chemical or mineral concentrate. The company believes that co?investment by Shenghe in Hua Sheng strengthens the opportunity for GML and Shenghe to pursue the finalization of a Strategic Development Plan for the Kvanefjeld Project, as outlined in the MoU.
The Joint Venture partner China National Nuclear Corporation (CNNC) will reportedly bring in additional technical knowledge to the metallurgical separation of radionuclides from rare earth elements.Â Shengheâs association with CNNC provides further technical and regulatory support that will benefit the Kvanefjeld Project, said Dr. Mair.
Greenlandâs Kvanefjeld Project is positioned to play a significant role in the global supply of rare earth minerals. Located in southwest Greenland, Kvanefjeld is reported to be a low-cost, large-scale and long-term supplier of materials which are the cornerstone in bringing revolution in the efficient use of energy.
In todayâs trade, there has been no daily price movement in GGGâs stock price. However, 566,114 shares changed hands on ASX as on 23 January 2019. The stock price last traded at $0.064. Over the past 12 months, the stock price has fallen by 31.91% including a negative price change of 28.89%.
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