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Greenland Minerals poised to move on Kvanefjeld rare earths plan

GREENLAND Minerals and Energy soared more than 75 per cent today after the Greenland government made a key regulatory change.

The Perth-based company welcomed news that Greenland’s government had amended the standard terms for exploration licences, which will allow it to develop its flagship Kvanefjeld project for its rare earth elements, uranium and zinc.

Greenland Minerals said it can now commit to definitive feasibility studies in 2011, as planned, after the decades-old ban on uranium mining was essentially lifted.

The news saw Greenland soar 75.34 per cent to 64 cents by early afternoon - making it the biggest winner on the stock exchange.

Lars Emil Johansen, a former prime minister of Greenland and chairman of the company’s local subsidiary, said the government would now assess each licence on a case-by-case basis.

“It's not permission to start mining, but it is permission to make studies for mines with uranium. It's a very big step forward for the company,” he told Dow Jones Newswires.

Greenland Minerals said Kvanefjeld is the world's second-largest rare earths deposit and the sixth-largest uranium deposit.

A pre-feasibility study estimates the mine can produce 43,729 metric tonnes of rare earths oxides and 3895 metric tonnes of uranium a year during a 23-year lifespan.

With Dow Jones Newswires


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