Greenland signs MoU with Chinese firm for Kvanefjeld project

24 March 2014 (Last Updated March 24th, 2014 18:30)

Australian rare earth metals development firm Greenland Minerals and Energy has signed a non-binding memorandum of understanding (MoU) with China Non-Ferrous Metal Industry's foreign engineering and construction (CNF) over the Kvanefjeld multi-element deposit project.

Australian rare earth metals development firm Greenland Minerals and Energy has signed a non-binding memorandum of understanding (MoU) with China Non-Ferrous Metal Industry's foreign engineering and construction (NFC) over the Kvanefjeld multi-element deposit project.

Under the MoU, both companies will cooperate in aligning the rare earth concentrate from the Kvanefjeld project with NFC's rare earth separation experience and capacity.

The Kvanefjeld project is located in southern Greenland and holds one of the world's largest resources of both rare earth elements and uranium.

"Studies conducted to date indicate the potential to develop Kvanefjeld as a cost-competitive, long-life operation."

The project is currently in definitive feasibility study stage and is due to enter the permitting phase later this year.

Greenland said that studies conducted to date indicate the potential to develop Kvanefjeld as a cost-competitive, long-life operation that will produce rare earth concentrates, uranium oxide, zinc concentrate and fluorspar.

Both companies intend to increase the technical cooperation to assist in the completion of feasibility studies on Kvanefjeld and finalise a mining licence application.

Greenland and NFC are aiming to establish a strategic cooperation agreement and construct a strong business partnership and associated commercial considerations.

NFC has a new 7,000t a year capacity rare earth separation facility planned, with all approvals secured.

The planned facility is designed to process concentrates of a similar composition to the critical rare earth mix, aimed to be produced from Kvanefjeld. The capacity matches the volume of Kvanefjeld's stage one projected output.

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