- Greenland Minerals (GGG) requests arbitration in the dispute with the governments of Greenland and Denmark
- Last month, the Greenland Government rejected Greenland’s exploration licence for its Kvanefjeld project, following a ban on uranium mining
- GGG said its main aim in the arbitration is to protect its investment in the project and to obtain the exploration licence needed for the project to proceed
- If the new ban on uranium mining does apply to Kvanefjeld, the company will look for compensation and damages for expropriation
- GGG shares are up 5.08 per cent trading at 6.2 cents
Greenland Minerals (GGG) has requested arbitration in the dispute with the governments of Greenland and Denmark to protect its investment in a rare earths project in Greenland.
Last month, the Greenland Government rejected Greenland’s exploration licence for its Kvanefjeld project, following the ban on uranium mining.
The company said it has taken the legal proceedings after its discussions with the
Greenland Government “failed to deliver any viable solution”.
GGG said its main aim in the arbitration is to protect its investment in the project and to obtain the exploration licence needed for the project to proceed.
If the ban on uranium mining does apply to Kvanefjeld, the company will look for compensation and damages for expropriation.
GGG wants the dispute to be resolved before a tribunal of three arbitrators seated in the Danish capital Copenhagen.
Denmark is listed as a respondent in the legal action on the basis of the Danish Government’s involvement in the exploration licence and the wider project.
“We tried to find a constructive solution through dialogue with the Government of Greenland, but they made it clear that they would not move from their position that Act No. 20 applies to us and our exploitation licence will not be granted,” GGG Managing Director Daniel Mamadou said.
“In these discussions, the government also made it clear that they do not consider themselves to be under any obligation to compensate us.”
GGG has spent 10 years and more than $130 million in the Kvanefjeld project and according to Mr Mamadou the company has followed every “government regulation and request throughout the process”.
“The project has been through a rigorous environmental assessment and it remains one of the largest undeveloped rare earth assets in the world and a key future source of the technology metals that will be required for the clean energy transition,” he said.
GGG shares are up 5.08 per cent on the market trading at 6.2 cents at 12:12pm AEDT.