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Greenland Minerals And Energy: New Coalition Government To Support Resources

Greenland Minerals and Energy (ASX:GGG) has received an indication that Greenland's new coalition government will continue supporting resource investment.

The Siumut Party, which received the most votes in November's election, has formed a coalition with the Demokraatic and Atassut Parties after several days of negotiations.

Siumut had led the previous coalition government, which voted in 2013 to repeal its zero-tolerance uranium policy.

Following the election, Siumut Party leader Kim Kielsen emphasised his commitment to resource extraction and creating a stable investment environment.

Siumut has formed every single government in Greenland but one since 1979.

Kvanefjeld continues to progress

The company remains focussed on completing the feasibility study on the Kvanefjeld uranium and rare earth project.

It is also working to finalise an exploitation (mining) licence application.

An update on the project timeline is expected in the coming weeks once the incoming government has settled into office.

The feasibility study is evaluating a mine, concentrator and hydrometallurgical refinery in Greenland treating 3 million tonnes of ore per annum.

The concentrator will produce 230,000 tonnes per annum of a rare earth mineral concentrate which contains 14% REO and 0.25% U3O8.

Refining of this mineral concentrate is expected to produce 7,000 tonnes per annum of critical rare earths, 16,000 tonnes per annum of light rare earths and 1.1 million pounds of U3O8.

Kvanefjeld has Resources of 956 million tonnes, containing 575 million pounds uranium and 10.33Mt total rare earth oxide.

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