Join our daily newsletter At The Bell to receive exclusive market insights
- Greenland Minerals’ (GGG) Kvanefjeld Project has once again hit a speed bump on its path to approval
- The rare earth projects’ public consultation period, which began late last year, was initially intended to last just 12 weeks but has now been pushed back a further 11 weeks
- The Greenland Government decided to extend the period in the wake of new COVID-19 restrictions in the region, which will lock up the nation’s borders until the end of this month
- With no way for specialist advisors and independent experts to enter Greenland and participate in the consultation process during the lockdown, the company has agreed that the extension was needed
- Greenland Minerals is down 5.56 per cent and trading at 26 cents per share
Greenland Minerals’ (GGG) Kvanefjeld Project has once again hit a speed bump on its path to approval.
The rare earth projects’ public consultation period, which began late last year, was initially intended to last just 12 weeks but has now been extended by another 11 weeks, pushing the end date from March to sometime around June.
The Greenland Government decided to extend the period in the wake of new COVID-19 restrictions in the region, which will lock up the nation’s borders until the end of the month.
The country’s upcoming April elections also factored into the decision, with the government believing any newly elected local municipal council should have the opportunity to be involved in the consultation process.
Meanwhile, with no way for specialist advisors and independent experts to enter Greenland during this month’s lockdown, the company has agreed that an extension is needed.
Managing Director Dr John Mair said the company openly supports the extension to allow the project to be effectively communicated and discussed among community and government stakeholders.
“We appreciate that the government is undertaking the public consultation during a time of logistical challenge and are working cooperatively to support this. There is a substantial amount of information that relates to many aspects of the Project, and it is important that local stakeholders have ample time and opportunity to understand all aspects,” he added.
The 11-week extension hasn’t sat well with investors, with GGG shares opening more than 5.5 per cent down this morning.
This isn’t the first time an unexpected delay has driven Greenland Minerals’ share price into the red. After a key environmental impact assessment for the project failed to materialise on schedule back in August 2020, GGG shares fell more than 7 per cent.
Nevertheless, a pair of unexpected delays haven’t stopped investor interest in the project from doubling GGG’s share price over the last 12 months.
Greenland Minerals is down 5.56 per cent and trading at 26 cents per share at 12:52 pm AEDT.
