Uranium ban repeal in Greenland could revive massive rare earth project, licence holder says

Reuters

11-02-2025

NUUK, Greenland, Feb 11 (Reuters) - The mining company that owns the licence to Greenland's Kvanefjeld deposit is hopeful that a new government will repeal a ban on uranium mining after next month's election, potentially rejuvenating one of the world's largest rare earth projects.
U.S President Donald Trump last month voiced renewed interest in acquiring the strategically important Arctic island.
In response to Trump's comments, CEO Daniel Mamadou of Kvanefjeld licence holder Energy Transition Minerals (ETM.AX), opens new tab, said: "I think it certainly puts everything related to minerals back on the map."
Kvanefjeld is among the world's top three rare earth deposits outside China, capable of supplying up to 15% of global production of the critical components used in manufacture of consumer electronics and weapons, according to Mamadou.
However, the project's development was halted four years ago following the election of the Inuit Ataqatigiit party, which had pledged to stop the Kvanefjeld project due to its uranium content and proximity to populated areas.
The government subsequently enacted a law banning extraction from deposits with uranium concentrations higher than 100 parts per minute (ppm).
The company had been on track to gain final approval for the mine under the previous government, but locals fear its development could harm the country's fragile environment. The site is located near a UNESCO World Heritage Site and just a few kilometres from Narsaq. Mamadou was met by local protesters from Narsaq when he visited the site last week.
Greenland's government is in a caretaker period because the election has been called and is no longer fully active. The ruling IA party says it is still opposed to the project and wants to keep the uranium ban in place.
Its government coalition partner Siumut, which did not vote for the passing of the uranium ban in 2021, has since the election was called not said if it wants to scrap the uranium law. However, Siumut says in its party constitution that it should be possible to develop mines with uranium as a biproduct.
The head of Greenland's biggest labour union SIK with 8,000 members supports the development of Kvanefjeld.
Before the halt, Energy Transition Minerals had invested over 1 billion Danish crowns ($138 million) in the project. The company has since launched an arbitration case seeking compensation from the Greenlandic and Danish state.
"The way this case is going to be solved - whether it's in our favour or not - is going to dictate the view and the attitude of foreign investments into Greenland going forward," Mamadou said.
The company's shares saw a significant boost following Trump's comments but remain far below levels seen before the enactment of the uranium law.
The timing of Mamadou's visit to Greenland during the election campaign was a coincidence, he said.
Energy Transition Minerals, with China's Shenghe Resources holding 7% as its largest shareholder, is prepared to supply a supply chain outside China within the next three to five years, Mamadou said.
Despite protests from locals in Narsaq near the Kvanefjeld site, Mamadou remains optimistic about the project's economic impact. He believes that the project could provide a much-needed boost to Greenland's fishing-dependent economy, potentially paving the way for the country's economic independence from Denmark.
($1 = 7.2366 Danish crowns)