Greenland Minerals Ltd (ASX:GGG, OTC:GDLNF) has met with Greenland’s Department of Mineral Resources and Justice to discuss the effect of the northern nation’s latest mining bill.
The recently passed legislation effectively banned uranium mining on mineral resources with more than 100 parts per million uranium in Greenland, where the ASX lister is currently developing its Kvanefjeld rare earths project.
Going forward, the department has provided two options for Kvanefjeld’s future development.
Now, GGG is seeking a meeting with Greenland’s Minister for Finance, Minerals, Justice and Gender Equality, Naaja H Nathanielsen, to discuss the options and remedy mechanisms.
It has appointed global law firm Clifford Chance as its legal adviser.
Simultaneously, GGG has commenced a strategic review under new managing director Daniel Mamadou and may consider new opportunities in technology metals and minerals.
It considers itself well funded to pursue new projects, with $31.6 million in the coffers as of September 30, 2021.
The call
Both parties met via video conference on December 15 to discuss the legislation’s implications.
Department representatives, delegates from Greenland’s Minerals Licence and Safety Authority and their legal advisers, GGG managing director Daniel Mamadou, senior Perth staff and the company’s legal advisors attended the meeting.
During the conference, the Greenland Government department delivered a presentation on its recently passed act to ban uranium prospecting, exploration and exploitation, and its impact on GGG’s exploitation licence application for the Kvanefjeld project.
According to the terms of the act, the legislation will apply to licences issued after its effective date — December 2, 2021.
GGG’s current exploration licence was issued before this date and is the basis of its application for an exploitation licence at Kvanefjeld.
However, the department said granting an exploitation licence would be considered a separate, new licence, and therefore subject to the new act.
Based on this interpretation, the company's exploitation licence application would not be granted, based on its current development proposal for Kvanefjeld.
The company was advised of two options for Kvanefjeld, which are:
- To maintain the present exploitation licence application, to which it should expect a refusal, or;
- To recall the application and potentially hand in a revised application, in which the company would need to demonstrate that it can comply with the act’s 100part-per-million uranium threshold limit.
Next steps
As it considers its options, GGG has appointed a legal advisor and requested a meeting with a prominent Greenland Government minister.
It will keep the market updated on its next steps.