Greenland Minerals & Energy - at site in Greenland
"Greenland Minerals & Energy - at site in Greenland"

Shares in Greenland Minerals and Energy were up sharply after it signed a non-binding memorandum of understanding with China Non-Ferrous Metal Industry's Foreign Engineering and Construction Company.

The agreement sets out the framework for technical assistance between the two groups as Greenland looks to develop its Kvanefjeld rare earths project in Greenland and find buyers for its product.

"Under the terms of the agreement, both parties intend to increase the technical co-operation to assist in the completion of feasibility studies on Kvanefjeld and finalise a mining license application," Greenland said in a statement.

"Both parties are aiming to establish a strategic co-operation agreement and map out the structure of a business partnership and associated commercial considerations.

"The creation of a full value chain will have Greenland well positioned to commence marketing rare earths to end users globally and secure offtake agreements."

Greenland said Kvanefjeld was in definitive feasibility study phase, with mining approvals set for later in the year.

"Studies conducted to date indicate the potential to develop Kvanefjeld as a cost-competitive, long-life operation that will produce rare earth concentrates, uranium oxide, zinc concentrate and fluorspar," the company said.

Greenland said China Non-Ferrous Metals was a recognised global leader in rare earths separation technology.

Shares in Greenland were up 3.7 cents, or 25.52 per cent, to 18.2 cents at 9.40am.

The West Australian

Popular videos

Compare & Save

Our Picks

Compare & Save

Follow Us

More from The West