Sponsored

Here’s what may lead to Greenland Minerals’ (ASX:GGG) progress in 2021

Summary

  • Greenland Minerals Limited (ASX:GGG) is developing the Kvanefjeld rare earth project, a world-class mine development opportunity for Greenland.
  • Owing to accelerated progress, the Company is edging towards bagging a mining license.
  • Key circumstances of 2021 may propel Kvanefjeld to become a globally significant producer of rare earth materials.

Rare earth demand is ready to undertake a key upturn. There is strong demand for rare earth magnets from electric vehicles, wind turbines, and energy-efficient technologies. Besides, reducing carbon emissions via electrification of transport systems, and renewable energy, are important global agendas.

Well aware with these facts, Greenland Minerals Limited (ASX:GGG) is developing the Kvanefjeld rare earth project.

It is one of the most significant and advanced emerging rare earth projects globally. Kvanefjeld is distinctive and leverages from favourable metallurgy. Besides, the forecast production profile throughout the commercially valuable rare earths is another add-on.

GOOD READ: Greenland Minerals (ASX:GGG) Building An Integrated Global Rare Earth  Supply Business

So much so, Kvanefjeld could be a globally major producer of each commercially vital rare earth elements, consisting of praseodymium, terbium, neodymium, and dysprosium, over initial 37-year mine life.

Kvanefjeld traits (Source: CLSA Rare Earths Deep Dive Presentation, Nov 2020)

In this backdrop, let us walk through a few possible occurrences expected in 2021, which can further boost the ongoing development of Kvanefjeld-

Unprecedented rare earths demand growth

Greenland Minerals believes that the demand for rare earths is set for major growth, estimated at ~9% CAGR over the next decade. According to Adamas Intelligence, by 2030, the demand for magnet RE’s (Nd, Pr, Tb, Dy) may soar by over 150%, necessitating a 2x surge in global production.

With the rare earths sector heating up, demand is surging, and prices are likely to rise in response to strong demand from downstream industry (for instance -- magnet producers).

A constrained supply system provides the Company with an optimal development window. Notably, Kvanefjeld has exposure to all the key magnet rare earths – Nd, Pr, Dy as well as Tb, making it a complete rare earths project.

RELATED READ: Greenland Minerals Advances Kvanefjeld Project Amidst Broader Rare Earths Outlook

European opportunity

Europe is evolving into a growing rare-earths demand centre. Rare earths are extremely critical to the region’s green industrial sector (EV’s, wind turbines).

Consequently, the European Commission launched the European Raw Materials Alliance in September 2020.

Other engagements of organisations and industry are also likely to add on to the rising European opportunity.

Greenland Minerals is supremely positioned to offer a safe and steady supply of all-critical magnet rare earths for the growing European industry.

ALSO READ: Unveiling The Strong Bond Between Greenland Minerals & Shenghe Resources

Project developments

The Company is making impressive progress to the extent that the issuance of an exploitation permit for the Kvanefjeld deposit can be expected in the coming few months.

Developments over the years (Source: CLSA Rare Earths Deep Dive Presentation, Nov 2020)

Most recently in December 2020, the Greenland Government approved the initiation of Kvanefjeld’s statutory public hearing. Prior to this, EIA technical reviews had been completed in September 2020. Follow-up white paper is likely to be completed in Q2 2021.

With the various precursors to the mining license looking good, commercial development, marketing and off-take can also be expected.

In 2021, Greenland Minerals looks forward to engaging end-user industries like collaborators and strategic partnerships, working around its downstream processing strategy, and conversion of optimised feasibility to DFS level.

ALSO READ: What’s In Store For Greenland Minerals (ASX:GGG) in 2021?

With the strong foundation set for development success, Kvanefjeld does seem well-positioned to become an integrated global rare earths supplier.

GGG traded up by 5% at $0.31 on 22 January 2021.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK