Greenland Minerals and Energy Limited (ASX:GGG) is eyeing the use of hydro‐electric power for the large Kvanefjeld rare earth and uranium project, signing an agreement with a European multi‐national conglomerate to develop a "power concept" based on renewable energy to power Kvanefjeld.
The agreement comes after an ongoing dialogue driven by the provider with the Government of Greenland and the company.
Apart from reducing the carbon footprint, third party infrastructure concepts could reduce capital costs and enhance the projects economic metrics. The agreement to advance third party power solution is a significant step in that direction.
The power solution will investigate the potential to link in to the existing public network, providing broader benefits for South Greenland. The set‐up for the power solution would consider a Private Public Partnership (NYSE:PPP) model, in which GMEL would be an end‐user.
The provider will map out the entire concept and aim to bring in a partner for the main EPC contractor, civil work and financing.
Managing director of Greenland Minerals, Dr John Mair said: "GMEL has actively been investigating third‐party infrastructure concepts that would benefit the Kvanefjeld Project.
"Greenland has excellent potential to increase the hydro‐electric power capacity, which would provide major benefit for new industry, as well as nearby communities.
"Utilising hydroelectricity to power operations will reduce the carbon footprint and strengthen the brand of raw materials produced in Greenland, which is of increasing importance to end users."
The power solution will investigate the potential to link in to the existing public network, providing broader benefits for South Greenland.
The set‐up for the power solution would consider a Private Public Partnership model, in which Greenland Minerals would be an end‐user. The provider will map out the entire concept and aim to bring in a partner for the main EPC contractor, civil work and financing.
The use of hydropower to produce raw materials that are critical to clean energy generation and new energy efficient technologies would provide an optimal outcome for the Kvanefjeld project and would reduce the carbon footprint of the project and be advantageous to end product branding.
Kvanefjeld is one of the world's largest resources of rare earth elements, as well as containing substantial resources of uranium and zinc.
Upcoming Work Programs
The provider has mapped out a three stage work program.
- The first stage is the delivery of a 'power concept' which will be completed within a couple of months and will be incorporated into the mining license application before the public hearing period. The power concept will draw off the information in the Kvanefjeld Feasibility Study, and the provider's in‐depth experience and expertise in power provision solutions.
- The second phase would commence upon receipt of mining permits, and aim to take the power concept to bankable status.
- The third stage will involve the supply of electromechanical equipment for the hydro‐power plant and the substation and grid control for the network.
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