Home / Business and Economy / Greenland Eyes Rare Earths Project Rejection
Greenland Eyes Rare Earths Project Rejection
7 Apr
Summary
- Greenland signaled potential rejection of ETM's Kvanefjeld rare earths license.
- The government cited a 2021 law effectively banning uranium prospecting.
- ETM is pursuing arbitration over its legal rights for the project.
Greenland has officially informed Energy Transition Minerals (ETM) about a potential rejection of its exploration license renewal for the Kvanefjeld rare earths project. The Australian miner's shares saw a decline following this announcement. The Greenlandic mineral resources ministry intends to recommend that the application be declined, stating that ETM's activities are no longer deemed purposeful under the existing legislative framework.
This development is linked to a December 2021 Uranium Act, which effectively prohibits uranium prospecting, exploration, and exploitation. ETM has contested this, filing a statement of claims with an arbitration tribunal in Copenhagen to determine its legal rights. The company highlighted that Greenland had previously granted renewals for the project, even after the introduction of the 2021 Uranium Act, viewing the current draft position as inconsistent.
