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Greenland Minerals And Energy's Kvanefjeld Project Gains With Election Results

Greenland Minerals and Energy's (ASX:GGG) Kvanefjeld project in South Greenland has a new ally in Greenland's first female prime minister Aleqa Hammond.

With her election win, Ms Hammond has vowed to support the extraction of vast mineral resources, including uranium. She has said it will be a high priority of the new government in Greenland.

If the government gets the legislative process completed before the autumn session of the Parliament, the Minister of raw materials, Jens Erik Kirkegaard, Siumut, will submit a bill repealing zero tolerance towards uranium at the meeting.

This would pave the way for mining of ore with rare earths in particular Kvanefjeld at Narsaq in South Greenland and a handful of other places.

If so, Greenland would then permit mining companies to extract uranium as a by-product from rare earth deposits which are believed to be among the largest in the world outside of China, which currently accounts for 90% of global production.

Rare earth elements are key ingredients in smartphones, weapons systems and other modern technologies.

Hammond's centrist Siumut party won 42.8 per cent and 14 seats, while incumbent Premier Kuupik Kleist's left-leaning Inuit Ataqatigiit garnered 34.4 per cent.

Hammond's party now needs to cobble together a coalition that will control at least 15 seats in the Greenland Parliament.

Hammond has said her party was ready to accept uranium mining if the ore contains a maximum of 0.1 per cent uranium oxide.

Greenland would then look to permit mining companies to extract uranium as a by-product from rare earth deposits which are believed to be among the largest in the world outside of China, which currently accounts for 90% of global production.

Many Greenlanders want to use the island's mineral resources, including rare earth metals and uranium, as a way to reduce dependency on a subsidy from Denmark, which now accounts for about two-thirds of the island's economy.

Greenland Minerals recently demonstrated that a high grade flotation concentrate can be produced from its Kvanefjeld project in southern Greenland where a feasibility study is currently underway and scheduled for completion this year.

Greenland could become an exporter of especially rare earth metals from Kvanefjeld.

Ms Hammond argues that Kvanefjelds project is one of the projects that can both provide much needed revenue to Greenland and help to reduce the record-high unemployment Greenland.

"It is not the only mine, we would like to have started. But it is one of the mines, our priorities in our government's agenda. Greenland wants greater economic independence and flexibility. We need new revenues, as it is too vulnerable mainly to base its economy on fishing, "says Ms Hammond.

"Our government thinks it is important that Greenland can use options to ensure economic growth, based on our own resources. We will also send a clear signal to the mining companies...of the will to extract rare earths that we have here."

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