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 1.36 billion ADollars. Mine development, the plant, utilities, indirect costs and contingency add up to 1.12 billion ADollars.
Another 240 million ADollars will be spent on power, port and a village. Kvanefjeld has an after tax net present value of 1.4 billion U.S. Dollars (8 per cent discount) and an internal rate of return of 21.8 per cent. 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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