Name of the Project
Kvanefjeld rare earths project.

Location
Kvanefjeld, southern Greenland.

Project Owner/s
ASX-listed Energy Transition Minerals (ETM). 

Project Description
The project is underpinned by the world’s biggest code-compliant rare earths resource.

The outcomes of a feasibility study in 2016 demonstrated the potential of the project to be developed as a large-scale, low-cost producer of rare earths. It envisaged the production of 30 000 t/y of rare-earth oxide (REO) at a processing rate of three-million tonnes a year.

An optimised feasibility study was completed in May 2019, showing recovery improvements across the light and heavy rare-earth elements.

The increased recoveries will result in the production of 32 000 t/y REO at three-million tonnes a year, adopted in the 2016 feasibility study.

The rare-earth recoveries have increased the projected output of commercially important rare earths to 4 260 t/y for neodymium oxide, 1 420 t/y for praseodymium oxide and 270 t/y for dysprosium oxide.

Average by-product output includes 451 t/y of uranium oxide, 6 060 t/y of zinc concentrate and 12 417 t/y of fluorspar. The increase in rare-earth recoveries is primarily owing to the design of a single-leach stage, which results in fewer solid/liquid separation stages. Each separation stage results in minor rare-earth losses. 

Kvanefjeld is well positioned to be a significant contributor to global rare earths supply for an initial 37-year period, based on a 108-million-tonne ore reserve.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2016 feasibility study estimated the project’s net present value at $1.59-billion, at a 10% discount rate. The internal rate of return is 43.4% with a payback of five years.

Capital Expenditure
The projected capital cost has been reduced by an estimated 40%, from $832-million to $505-million. This reduction resulted from optimisation studies covering all elements of the project, from the flowsheet to civil construction.

Planned Start/End Date
Not stated.

Latest Developments
ETM reported on October 29 that an arbitration tribunal had clarified its jurisdiction in the company’s dispute with the governments of Greenland and Denmark with regard to Kvanefjeld, 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 had passed legislation in 2021 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 pertaining to the breach of contract and damages could still be subject to arbitration, which would remain stayed pending the outcome of the court proceedings.

ETM MD Daniel 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 has said it remains committed to dialogue with local communities and authorities in Greenland and Denmark to find a path forward.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Energy Transition Minerals, tel +61 8 9382 2322 or email info@etransmin.com.