Greenland Mines has announced the receipt of formal approval from the Government of Greenland regarding the indirect transfer of Mineral Exploration License (MEL) 2020-32, which covers the Sarfartoq Carbonatite Complex, from Neo Performance Materials.

The Ministry of Business and Mineral Resources approved the transfer under Section 69(1) of the Greenland Mineral Activities Act.

This approval advances Greenland Mines’ planned acquisition of the Sarfartoq Neodymium-Praseodymium Rare Earths Project from Neo Performance Materials.

Securing this regulatory consent satisfies a key condition for finalising the deal.

The Sarfartoq project, situated within a carbonatite-hosted deposit, is noted for its high concentration of neodymium and praseodymium, which together represent between 25% and 40% of total rare earth oxides in the core ST1 zone.

These elements are integral to the production of permanent magnets used in electric vehicles, wind turbines, robotics and defence technologies.

Recent global shifts in export policy have heightened concerns over the security of supply chains for magnet-grade neodymium-praseodymium, especially for Western countries seeking to diversify away from existing dominant sources.

Sarfartoq’s location and geological features, combined with access to tidewater and nearby hydroelectric potential, have been highlighted by Greenland Mines as supporting its future development.

The project is said to benefit from significant prior exploration activity including a historical NI 43-101 mineral resource estimate, a preliminary economic assessment, more than 23,000m of drilling, extensive metallurgical testing and ongoing environmental studies.

Infrastructure at the site includes a 20-person camp and two ready-to-deploy drill rigs.

Greenland Mines also owns the Skaergaard project in south-east Greenland, which targets palladium, gold and platinum group metals.

The two projects are intended to support what the company calls its North Atlantic Critical Metals Corridor.

This strategy aims to connect mineral resources in Greenland with processing, logistics and offtake networks across the North Atlantic, making use of Greenland Mines’ presence in Iceland.

Greenland Mines president Bo Møller Stensgaard said: “This approval from the Government of Greenland is a fundamental milestone for our company and for the future of Sarfartoq.

“It reflects the strength of our relationships in Greenland and the confidence the government places in our team to advance this project responsibly.”