Energy Transition Minerals’ Application to Extend Kvanefjeld Licence Denied by Greenland Government

The government of Greenland has declined a request by Energy Transition Minerals (ASX: ETM) to extend exploration licence 2010/02, which covers the Kvanefjeld rare earth element project in the country’s south.

The decision follows a consultation process in which the company’s wholly owned subsidiary Greenland Minerals A/S was granted 48 hours to respond to technical geological assessments and subsequently declined a one-week extension.

Energy Transition believes the decision was reached without adequate consideration of Greenland Minerals’ exploration results from 2025.

This program identified 10 new mineralised target zones outside of the existing Kvanefjeld resource areas including a 1.8 kilometre mineralised trend where uranium concentrations are below the 100 parts per million threshold required under Greenland’s Uranium Act.

Contradictory Approach

Energy Transition said the government’s current position contradicted its earlier approach, with EL 2010/02 having already been extended once after the Act came into force, and intends to consider all available options, including a challenge under Greenland’s administrative law, after a full review of the decision with its legal advisers.

“The compressed timeframe imposed during the consultation process, the refusal of a reasonable extension, and the apparent failure to consider material exploration data raise significant questions regarding procedural fairness,” the company stated.

“These matters create the appearance that the outcome may have been predetermined, or at minimum that Greenland Minerals has not been afforded a genuine and meaningful opportunity to be heard.”

Challenging the government’s decision will not affect Energy Transition’s ongoing legal proceedings concerning the treatment of its interests in Greenland.

Furthermore, the company has been advised that the licence area will not be reallocated to other mining companies while the proceedings remain unresolved.

‘Shifting Policy Positions’

Managing director Daniel Mamadou said the company had been disappointed by the decision.

“It is the latest in a series of shifting policy positions on a project of clear strategic significance, and it sends a damaging signal about the predictability of the regulatory environment in Greenland,” he said.

“When a company is allowed 48 hours to respond to technical assessments and material new exploration data is not properly considered, there are far-reaching consequences for the entire minerals industry in the region.”

“This decision significantly undermines Greenland’s position as a predictable place to invest, at a time when stable jurisdictions are central to establishing Western critical mineral supply,” he added.

Energy Transition said it remains confident in the underlying value and strategic significance of the Kvanefjeld project, which hosts one of the world’s largest rare earth deposits, and would pursue every appropriate legal and commercial avenue to realise that value for shareholders.