The giant Kvanefjeld specialty metals project, Greenland: A future uranium supplier

Full text: The Kvanefjeld Project is located near the southern tip of Greenland, and is now recognised as one of the largest undeveloped deposits of rare earth elements (REEs) and uranium in the world. The project was originally investigated as a potential uranium resource by the Danish Government through the 1970s and early 1980s before work on the project ceased owing to the negative sentiment that emerged toward nuclear energy globally. The Kvanefjeld project lay dormant for over twenty years until it was acquired in 2007 by Greenland Minerals and Energy; an Australian-based exploration and development company that set out to evaluate Kvanefjeld as a polymetallic resource, rather than as a single commodity operation. This approach was fuelled by: 1) the steady increase in demand for rare earth elements, owing to their essential requirement in many new technologies that will soon be common consumer items; 2) recognition through academic studies that Kvanefjeld could contain vast quantities of specialty metals; and 3) a nuclear renaissance owing to growing concerns over the environmental impact of carbon-based energy sources. Collectively, rare earth elements and uranium can be considered as strategic commodities, with long term forecasts highlighting increasing demand with looming supply shortfalls. Following the first drill program undertaken by Greenland Minerals and Energy, the company released a first multi-element resource estimate that complies with the Australian Joint Ore Reserves Committee (JORC) requirements. This initial resource statement includes 223 million pounds of uranium (at 302 ppm uranium oxide), and 2.6 million tonnes of rare earth oxide. The resource is expected to grow significantly following a 20 000 m drill program in 2008. It is now clear from recent exploration that Kvanefjeld is rapidly emerging as a world class specialty metals project that could be the largest supplier of rare earth elements outside China, and a globally significant uranium producer. The path to development for the Kvanefjeld project is closely tied to political developments in Greenland. In a referendum in late 2007, Greenland voted strongly in favour of independence from Denmark. With independence comes recognition that expanding its mining industry is essential to developing a robust economy, which is currently dependant on Danish subsidies. Following the referendum, a parliamentary debate was held on Greenland's stance on uranium exploitation, which is one of zero tolerance. The debate concluded that by-product uranium production from polymetallic ores should be considered, to allow projects such as Kvanefjeld to advance to development. (author)