ASX-listed Energy Transition Minerals (ETM) said on Wednesday that an arbitration tribunal had clarified its jurisdiction in the company’s dispute with the governments of Greenland and Denmark over the Kvanefjeld rare earths project, paving the way for the next stage of the long-running case.

The company’s subsidiary, Greenland Minerals (GM), launched arbitration in March 2022 after the Greenland government in 2021 passed legislation regulating uranium mining, which effectively blocked GM’s path to an exploitation licence for Kvanefjeld, owing to uranium content.

Following a June 2025 hearing in Copenhagen, the tribunal ruled that the government of Denmark should not be a party to the case and that claims concerning GM’s right to an exploitation licence should be determined by the courts. However, claims relating to contract breach and damages could still be subject to arbitration, which would remain stayed pending the outcome of the court proceedings.

“The Tribunal has decided that the government of Denmark should not be a party to the case,” said MD Daniel Mamadou. “Regarding the government of Greenland, the Tribunal has referred GM's claims concerning confirmation of the right to an exploitation licence for determination by the courts instead of the arbitration, while GM's claims concerning contract breach and damages may still be subject to arbitration.”

He added that the tribunal’s reasoning acknowledged it was “unsurprising that the parties have disagreed on the proper understanding and scope of the arbitration agreement”, noting that the agreement had been drafted solely by the governments and imposed on GM as part of its exploration licence.

Mamadou said the tribunal’s decision aligned with a solution ETM had proposed in November 2024 to avoid further time and costs in the arbitration, which the governments rejected. “We are confident that we will eventually achieve a positive outcome in the appropriate forum. We are therefore pleased that a decision has now been made, allowing us to move forward with the case,” he said.

He also reiterated that it was regrettable the Kvanefjeld project had not yet started, saying it held significant potential “both for Greenland, which stands to benefit from substantial long-term revenues and new jobs, and for the global transition to renewable energy, which depends on critical minerals like rare earths".

ETM said it remained committed to dialogue with local communities and authorities in Greenland and Denmark to find a path forward.

The Kvanefjeld project is one of the world’s largest undeveloped rare earth deposits, with existing infrastructure and port access supporting its potential as a competitive, large-scale source of critical minerals for wind turbines, electric vehicles and other clean energy technologies.