PERTH, WESTERN AUSTRALIA--(Marketwired - Jun 8, 2016) -
- Danish Parliament passes legislation to create legal framework for uranium exports from Greenland
- Greenland Parliament adopts laws in relation to non-proliferation commitments
- Key parliamentary developments conclude a comprehensive program by Governments of Greenland and Denmark to establish the regulatory framework required to manage uranium production and export from Greenland
- Sets a solid foundation for the permitting and development of the Kvanefjeld rare earth and uranium project
Greenland Minerals and Energy Limited (ASX:GGG) is pleased to advise that both the Greenland and Danish parliaments have now passed legislation which will regulate uranium export from Greenland. This is a very significant milestone for the Company as it confirms that a regulatory framework for the export uranium will be in place for the development of the Company's Kvanefjeld project.
In Greenland's parliament on May 25th, four bills were passed to ensure that uranium mining and export is done in a manner that meets the Kingdom of Denmark's international non-proliferation commitments. Greenland now has a regulatory and legislative framework in place which will permit the production and export of uranium.
On June 2nd and 3rd the Danish parliament passed legislation that creates the legal framework which will allow Greenland to export uranium. In enacting the two pieces of legislation, Denmark assumes responsibility for the application of international safeguards to ensure peaceful use of Greenland uranium. This clears the path for international sales of uranium from Greenland in accordance with the conditions established by the legislation which will come into force on 1 July, 2016.
These latest political developments were the final steps in an extensive program to create the framework and regulations which would allow exports of uranium from Greenland while ensuring compliance with international treaties and conventions concerning trade in uranium. This program has involved the formal agreement between Greenland and Denmark on managing uranium exports and associated responsibilities, Greenland ratifying its accession to a series of international safety conventions, and the adoption of new laws in Greenland and Denmark concerning non-proliferation.
GMEL's Kvanefjeld Project is the only advanced minerals project in Greenland that is projected to produce uranium. The Kvanefjeld Project area has defined JORC-code compliant resources of >1 billion tonnes containing 11.1Mtonnes rare earth oxide, and 593Mlb's U3O8.
The initial development strategy is projected to produce rare earth metals critical to energy efficient technologies, with uranium to be an important by-product. An exploitation (mining) license application for the Kvanefjeld Project is currently under assessment by the Greenland government.
Dr John Mair, GMEL Managing Director commented:
'The establishment of a regulatory framework within the Kingdom of Denmark to manage uranium exports from Greenland is an important prerequisite for Kvanefjeld's successful development. The parliamentary approvals that have completed this process represent a significant milestone, and set a solid foundation for Kvanefjeld's progress toward development. The developments provide a further demonstration of Greenland's efforts to support the resources industry and attract foreign investment.'
Company Presentation: http://www.ggg.gl/docs/ASX-announcements/GMEL_Company_Presentation_May_2016.pdf
For more information see the full company ASX announcement: http://www.ggg.gl/docs/ASX-announcements/Denmark-Passes-Export-Legislation.pdf