Magnificient Greenlandic mining adventure underway

Dec. 5, 2010 - PRLog -- Media: Berlingske  Tidende   
 Greenland's underground has  everything from iron to lead, zinc, gold and uranium, but according to  geologists, it also holds large but yet undiscovered resources of REE − perhaps  the world's largest single deposit. REE is a broad category of elements of  importance to green technology and advanced electronics which will be in even  higher demand in the future than now.
 The prices of REE and  the stock share prices of companies involved with mining them have recently  soared after China announced a cut-back of over 70 % of the export of REE for  the rest of 2010 and a reduction of 30 % of exports in 2011. China virtually  has a monopoly on the world market, but within a few years, Greenland can  become an important competitor.a few years started with the extraction of rare  earths, Greenland can be a serious competitor to China and might be able cover  25 % of the world demand.
 After several years of  successful research drilling In southern Greenland, the company Greenland  Minerals and Energy Ltd. has plans to start extraction within the next five to  six years. The company is well underway of spending half a bil. DKK on an  aggressive exploration program. GME's drilling program now has 40 km of  research drilling and will during the next two years drill another 60 km. The licensed  areas are in an area of 100 sq.km. Energy for the mining will come from  waterpower − another of Greenland's riches.
 If the Government of  Greenland authorizes the mining and Greenland Minerals bold plans are being  implemented, it will involve investments probably amounting to two-digit bil.  DKK.
 Ole  Ramlau-Hansen, general manager of Greenland Minerals and Energy A/S:

 This is a  huge venture. We believe we are sitting on one of the world's largest deposits  of rare earth elements, perhaps the biggest. We have over the past three years  invested 200 mil. DKK in exploration and drilling. Over the next two to three  years, we plan to invest an additional 300 mil. DKK.
 A conservative  assessment shows a minimum of five mil. tons of REE in areas we hold licenses  for.
 GME  expects to employ some 600 employees and additional 800 employees will probably  be needed by subcontractors. Building one or more mines, roads and a port will probably  in total amount to investments of about 13-15 bil. DKK.
 Building  projects and infrastructure often ends up more expensive than expected. It  recently happened to the Femern Bridge project (in Denmark), and it could  happen to us.
 Greenland  might have enough REE for 75-100 years of mining.
 Production  is expected to begin around 2014-2016 if the authorities and politicians of  Greenland gives the go-ahead.

Facts
   Media: Berlingske Tidende   
 Globally, there are 17 different  REE. A mobile phone, for example, requires neodymium to work. The fully know  deposits of this element is only 7.000 tons.

 Windmills  require neodynium − other use includes microphones, loudspeakers, telephones,  hard discs.
 Hybrid  cars require lathan.
 Low energy  light bulbs require cerium − other use includes TV sets.
 Another  REE is yttrium which is used in TV sets, LED low energy light bulbs, lasers,  microwave technology and other electronic equipment.
 If REE are  extracted commercially in Greenland, uranium is an example of what might become  a bi-product or main product. The current legislation in Greenland prohibits  it.

Uranium haunts the stage
   Media: Berlingske Tidende   
 Mineral hunters of GME hope to  unveil the size of the deposit of REE within a few years. However, the company  can't avoid that uranium will be a part of what is extracted. This presents a  major problem to the company, because the government of Greenland has so far  unequivocally said no to authorizing extraction of REE where uranium is either  a bi-product of a main product. The reason is that uranium can cause problems  due to radio-active radiation.
Jørn Skov Nielsen, Director  of BMP:

 It's  possible to apply for a license to conduct environmental research, but the  Greenlandic government does not thereby allow mining REE. With the current  policy it is not possible.

Ole Ramlau-Hansen,  general manager of Greenland Minerals and Energy A/S:


 In 2013,  we will have the deposit uncovered.
 We will  hand in a report showing that we can extract REE in a environmentally safe and  responsible way. When we have documented this, we will apply for a extraction  permit.


# # #

Greenland Minerals and Energy Ltd, is a mineral exploration and development company, focused on unlocking the mineral riches of Greenland, one of the world’s last natural resource frontiers.