GGG boasts worlds largest rare earths mine
Greenland Minerals and Energy Limited (GGG) completed its pre-feasibility study, confirming the Kvanefjeld Project has the potential to become one of the world’s largest rare earth mines. The study forecast a Net Present Value of US$2.18 billion and free cash flow of US$8.9 billion over the life of the project.
The report said the project could support an economically robust, large-scale mining operation that would produce a rare earth concentrate and uranium oxide over a 20-plus year mine life.
The company said initial estimates indicate the proposed output at Kvanefjeld could rival that of Bayan Ebo in China, the world’s largest rare earth producing mine that accounts for approximately 40% of current world production.
Initial estimates indicate the proposed output at Kvanefjeld could rival that of Bayan Ebo in China, the world’s largest rare earth producing mine that accounts for around 40% of current world production.
“The People's Republic of China satisfies a total of 97% of global demand and in recent months indicated their desire to cease the export of certain rare earths, therefore creating a significant supply deficit in the market.”
GGG said its independent market research indicated that by 2015, prices for mixed rare earth carbonate will fall within the range US$7.50/kg to US$18.50/kg, tending towards the upper end of this range.
“The company is of the view that the apparent relative equilibrium in the market over the next few years masks pressures that are likely to build in the medium to long term and the long term,” the company added.
On the Uranium front, the company said independent research indicated that the price for uranium would range between US$70 to US$90/lb in the medium to long-term.
Just after the open, Greenland Minerals and Energy shares were up 2.5c to 68.5c.
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