- The Greenland Government said it will not grant Greenland Minerals (GGG) exploration license for its Kvanefjeld project, following the ban on uranium mining
- GGG met with senior members of the Greenland Department of Mineral Resources discussing the exploration licence that was applied for before the new law came into effect
- Greenland Minerals is now been encouraged to withdraw its pending application for the exploration licence
- However, Greenland Minerals is not giving up on the fight and has now lodged a letter of protest with the Minister of Mineral Resources of Greenland
- On the market today, GGG is down 15.6 per cent and trading at 5.4 cents per share
Greenland Minerals (GGG) has been told by the Greenland Government that it would not be granted an exploration licence for its Kvanefjeld project.
The company met with the Greenlands Minister for Finance, Minerals, Justice and Gender Equality to discuss the future of its rare earths project, following the recent ban on uranium mining.
The new law came into effect on December 2 but the company’s exploration licence El 2010/02 was issued before this date.
Greenland Minerals is now been encouraged to withdraw its pending application for the exploration licence.
“The government representatives confirmed that the act is not retroactive and its application would not result in an expropriation,” the company said.
However, Greenland Minerals is not giving up on the fight and believes that this order is “inconsistent with the terms of the exploration licence” and has firmly stated that the governments position “would not be accepted”.
The company has now lodged a letter of protest with the Minister of Mineral Resources of Greenland, protesting the Government’s actions.
Greenland Minerals is open to “constructive negotiations” and will not withdraw its application. It is expecting the government “to continue progressing its statutory requirement of completing the outstanding items in this process”.
“The company may have to test the application of the act through legal proceedings to obtain an objective determination of its existing entitlements. The company is working with its legal advisers to assess its options in this regard,” Greenland Minerals said in a statement to the market.
On the market today, GGG was down 15.6 per cent and is trading at 5.4 cents per share at 2:05 pm AEDT.