Greenland to Relax Uranium Laws
Greenland to relax uranium laws
PERTH-based Greenland Minerals and Energy has announced that by-product production of uranium has received in-principle support after a debate in Greenland's parliament.
There is currently a zero-tolerance view on uranium production in the island nation of Greenland, although this may soon be eased.
Greenland Minerals and Energy (GME) has been in a trading halt since Friday after the National Greenlandic newspaper published articles on the uranium debate in parliament before the company was able to seek official confirmation.
The parliamentary debate referenced GME's Kvanefjeld specialty metals project, which is near Greenland's southwest tip.
The Kvanefjeld project has an inferred resource of 334 million tonnes grading 0.03% uranium oxide for 101,000 tonnes of uranium oxide.
The deposit also contains sodium fluoride, rare earth oxide and yttrium oxide.
Last week more than 75% of Greenland's 57,000-strong population voted in a referendum for more independence from Denmark
Danish law currently applies in Greenland, and Denmark takes half the income from Greenland's natural resources.
GME said it will continue with a prefeasibility study on the Kvanefjeld project.
'With more than $16.5 million at hand we are well funded and plan to enter the 2009 exploration season with a definitive goal of increasing the resource at the project and advancing the various studies required to continue the project towards development,' GME managing director Rod McIllree said.
'Given the overwhelming support this project has received from the government and the citizens of Greenland, the work will be done within proper international environmental parameters with the wellbeing of the people always a priority.'
Shares in Greenland Minerals and Energy had jumped more than 7% or 2c to 28c.