GREENLAND – Greenland Minerals and Energy, an Australian company, has released the feasibility study for its Kvanefjeld rare earth-uranium-zinc project. The resource is greater than 1.0 billion tonnes, giving the project an initial mine life of 37 years. Potential exists to extend the timeline.
The feasibility study outlines a project that will produce rare earth produces, uranium oxide, zinc concentrate, and fluorspar. The pre-production cost will be A$1.36 billion. Mine development, the plant, utilities, indirect costs and contingency add up to A$1.12 billion. Another A$240 million will be spent on power, port and a village. Kvanefjeld has an after tax net present value of US$1.4 billion (8% discount) and an internal rate of return of 21.8%.
Greenland Minerals said the primary product will be a critical rare earth concentrate that can be produced for US$8.56/kg after by-product credits. The cost of producing uranium is expected to be less than US$6/lb.
The company plans to complete the environmental and social impact assessments in Q3 2015, and then to apply for a mining licence.
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