Greenland Minerals to object govt's draft decision on rare earth license

(Reuters) - Greenland Minerals Ltd said on Tuesday it will object to the Greenland government's draft decision to not grant it a license for the Kvanefjeld rare-earths project citing a legislation that effectively bans uranium exploration.

The Australia-listed miner said it will lodge an objection against the draft decision as it relies on a rule — which bans mining of ore bodies with uranium content of 100 parts per million (ppm) or greater — that is being contested separately in the court. https://bit.ly/3J3xMj9

"The draft decision rejecting our application for a mining licence is at odds with Greenland's stated policy to be a significant player in the energy transition," Greenland Minerals' Managing Director Daniel Mamadou said.

In March, Greenland Minerals took the governments of Greenland and Denmark to court for the legislation passed last year that banned uranium exploration and risked the development of the miner's Kvanefjeld project. https://bit.ly/3oxXcMl

So far, more than 1 billion tonnes of mineral resources and ore estimates of 108 million tonnes have been outlined in the Kvanefjeld project area across three different zones. It also contains radioactive uranium, which some residents fear will harm the environment. https://bit.ly/3J52HeG

The development comes amid rising interest for rights to exploit rare earth deposits in Greenland, which as per the U.S. Geological Survey has the world's biggest undeveloped deposits of the metals needed in electric-vehicle batteries.

The Greenland government will make a final decision after a consultation process on the draft decision, the miner said on Tuesday. However, it expects relief from the arbitration process to obtain the exploration license.

"Despite the current situation, we hope the legal process will allow for a fully informed assessment of the project," Mamadou said.

Shares of Greenland Minerals finished about 7% lower, their worst session in two weeks.

(Reporting by Sameer Manekar in Bengaluru; editing by Uttaresh.V)