Shares in Perth-based minerals explorer Greenland Minerals and Energy have spiked after Greenland's parliament voted to remove a 25-year-old ban on uranium mining.
Greenland Minerals shares closed up 3 cents, or 9 per cent, to 35 cents after surging 37 per cent in early trade.
On Friday Greenland's parliament narrowly backed the centre-left governing coalition's desire to remove the uranium ban which was imposed by Denmark in 1988.
Greenland Minerals and Energy, which is focused on developing rare earth elements, uranium and zinc projects in the environmentally sensitive area of Southern Greenland, hopes the decision will pave the way to develop its Kvanefjeld project.
"The company looks forward to continuing discussions on the Kvanefjeld project with Greenland stakeholders and regulators in order to finalise the development strategy of what is emerging as a world-class mining opportunity in Greenland," managing director Roderick McIllree said in a statement.
The Australian-listed explorer has conducted a pre-feasibility study on Kvanefjeld which it says demonstrates the potential for a "large-scale, cost-competitive, multi-element mining operation" on Greenland's southern tip.
Mr McIllree added that the company would push ahead with the Kvanefjeld project in agreement with both Greenlandic government and local community expectations.
The Kvanefjeld project contains around 575 million pounds of uranium and 10.3 million tonnes of rare earth oxide, with some experts estimating the mine could contain the largest rare-earth metals deposit outside China, which accounts for around 90 per cent of global production.
Rare earth elements are key ingredients in modern technologies such as smartphones and weapons systems. Many Greenlanders want to use the island's mineral resources as a way to reduce dependency on a subsidy from Denmark which accounts for about two-thirds of the island's economy.
However, Denmark's foreign trade minister, Nick Haekkerup, said on Friday that the sparsely populated Arctic island alone cannot decide on uranium exports because Denmark still handles Greenland's security and foreign policy.
Greenland is a semi-autonomous part of Denmark.
Environmental activists have criticised the lifting of the uranium ban.
In 2009, Greenland moved towards greater autonomy from Denmark with a transition to self rule, taking over authority for mining and oil and gas which had formerly been shared with Denmark.