Shenghe will hold 45% of the JV company China Nuclear Sheng Mining Ltd which will be the designated agent for Shenghe for the import, export and trading of rare earth materials that carry radionuclides.
Participation in the joint venture provides an authorised means for the receipt and processing of rare earth elements from radioactive materials imported into China.
The joint venture company will be authorised by the relevant ministries and commissions in China to undertake these activities.
Greenland Minerals managing director John Mair said: “The rare earth sector continues to evolve rapidly and Shenghe’s participation in Hua Sheng Mining along with CNNC creates a company that is authorised to import and process rare earth minerals and products enriched in radioactive elements
“Shenghe’s association with CNNC provides further technical and regulatory support that will benefit the Kvanefjeld project.”
Greenland Minerals entered a non-binding memorandum of understanding (MoU) with Shenghe in August last year for the offtake of total rare earth element output from the Kvanefjeld project in either chemical or mineral concentrate.
The joint venture establishes a formal means for the import of rare earth concentrates containing uranium and thorium into China for further processing.
CNNC also brings additional technical knowledge to the metallurgical separation of radionuclides from rare earth elements.
Kvanefjeld’s site location in Greenland
Greenland Minerals is fosued on its flagship Kvanefjeld Rare Earths Project in Greenland, which has a resource of 1.01 billion tonnes grading 1.1% rare earth oxides with a substantial uranium resource of 593 million pounds, as well as zinc.
The company finalised Kvanefjeld’s pre-feasibility in 2012 and a comprehensive feasibility study was completed in 2015, which was updated after pilot plant operations in 2016.
The studies highlight the potential to develop Kvanefjeld as a long-life, low-cost and large-scale producer of rare earth elements, key enablers to the electrification of transport systems.
Greenland Minerals aims to become a supplier of the key magnet metals neodymium, praseodymium, dysprosium and terbium.