28 Oct (NucNet): A “landmark decision” by Greenland’s parliament to remove a long-standing zero-tolerance policy on mining for radioactive materials such as uranium will place Greenland on the path to becoming a uranium producer of “global significance”, Greenland Minerals and Energy Limited (GMEL) has said.
Australian-owned GMEL, which is focused on developing rare earth elements, uranium and zinc projects in the environmentally sensitive area of Southern Greenland, hopes the decision will pave the way to develop its Kvanefjeld project.
“The company looks forward to continuing discussions on the Kvanefjeld project with Greenland stakeholders and regulators in order to finalise the development strategy of what is emerging as a world-class mining opportunity in Greenland,” managing director Roderick McIllree said in a statement.
Greenland’s parliament last week voted in favour of removing a long-standing zero-tolerance policy concerning uranium and other radioactive elements. The policy was imposed by Denmark in 1988. While Greenland has certain powers of self-government, it is still part of the Kingdom of Denmark. However, Denmark continues to exercise control of Greenland's foreign affairs, security, and financial policy in consultation with Greenland’s Home Rule Government.
GMEL said the decision represents “a significant moment” for Greenland, as it places Greenland on the path to uranium-producer status, and thereby opens up resources of rare earth elements to exploitation. The removal of the zero-tolerance policy is in line with Greenland’s broader intent to develop mining projects as a core to its future economic prosperity, the company said.
The company said a key underlying reason for Greenland to address and repeal the zero-tolerance policy is that abundant resources of uranium occur in Greenland’s south, resources which are also strongly enriched in rare earth elements. These resources form the basis of GMEL’s 100 percent-owned Kvanefjeld project.
The Kvanefjeld project is the subject of a definitive feasibility study to evaluate a possible mining operation that could produce uranium oxide, rare earth concentrates, and zinc. A preliminary feasibility study on Kvanefjeld, released by GMEL in 2012, outlined a “long-life, internationally cost-competitive operation” that would stand to make Greenland a major supplier of rare earth elements and a substantial long-term supplier of uranium oxide.
The Kvanefjeld mining project has a history going back to the 1950s when elevated uranium and thorium levels were identified in rocks of the Ilimaussaq Complex in the Kujalleq community in the southern tip of Greenland. This led to investigations by Danish research institutes through the 1960s, 70s and into the 1980s that aimed to evaluate uranium production from Kvanefjeld in order to fuel potential nuclear power stations.
In the early 1980s, the Danish government decided not to pursue the nuclear option, and after completing a positive preliminary feasibility study on Kvanefjeld, work ended in 1983. In 1988, the zero-tolerance policy concerning radioactive materials was introduced.
