The new amendment to the standard terms allows the Bureau of Minerals and Petroleum (BMP) to approve that comprehensive feasibility studies can be undertaken on mineral projects that include radioactive elements as exploitable minerals. Within this framework, projects are considered on a caseby‐case basis, at the government’s discretion. GMEL lodged an application at 4.00pm Greenland time onthe 9th September under these new regulations and, based on previous discussions, confidently expects its application to be approved in due course.
Path to an Exploitation License
Currently, under the Mineral Resources Act an application for an exploitation license is lodged following the completion of a definitive feasibility study. A licensee who has discovered and delimited a commercially exploitable deposit that does not contain radioactive elements above background concentrations, and who has otherwise met the terms of the license, is automatically entitled to be granted an exploitation license.
Following the introduction of the new amendment, the issuance of an exploitation license for a project that contains radioactive elements would depend primarily on the outcomes of comprehensive feasibility studies, with an emphasis on health, safety and the environment. In the case of Kvanefjeld, if the government is satisfied that all health, safety and environmental requirements can be met, then anexploitation license can be issued to develop an operation that will produce REEs, uranium and zinc.
Significantly, in addition to the new amendments that allow for project evaluation on a case‐by‐case basis, a comprehensive review into the exploration and exploitation of radioactive elements was announced on June 28th by the Minister for Industry and Raw Materials Mr Ove Karl Berthelsen. The review process involves the generation of comprehensive information by groups including the Geological Survey of Denmark and Greenland (GEUS), the National Environmental Institute of Denmark (NERI), the Risø National Laboratory, and the Ray Hygienic Institute.
This information will then to be distributed to the public through print, television and radio media in the coming months. In addition, a delegation from the Greenland government is scheduled to visit Ottawa to learn about the regulatory framework of uranium mining in Canada, as well as visiting a uranium mine in Saskatchewan, one of the world’s most sophisticated mining jurisdictions, to learn more about the exploration and mining of radioactive elements.
Background
Greenland Minerals and Energy Ltd is a mineral exploration and development company operating in southern Greenland. The Company is primarily focused on advancing the Kvanefjeld multi‐element project (rare earth elements, zinc, and uranium) toward development.
Kvanefjeld is located within the Company’s license over the northern Ilimaussaq Intrusive Complex; a unique geological entity that is highly prospective for specialty metals. A 457 million tonne JORCcompliant resource has already been defined at Kvanefjeld (see Appendix 1), which represents just a small percentage the broader Ilimaussaq ore field.
An Interim Report on the Kvanefjeld pre‐feasibility study was released in February 2010 that indicates the potential for the multi‐element resources to sustain a large‐scale mining operation for decades (for more information visit the Company’s website at http://www.ggg.gl ).