Greenland Mineral, NFC joint venture rare earth supply

Greenland Minerals, NFC JV for rare earth supply

11:58 AM, 25th March 2014
Greenland Mineral, NFC joint venture business

PERTH, AUSTRALIA: Greenland Minerals and Energy Limited (GMEL) has made a significant step toward the establishment of an integrated global rare earth supply business with the signing of a non-binding Memorandum of Understanding (MoU) with China Non-Ferrous Metal Industry's Foreign Engineering and Construction Co Ltd (NFC). The MoU sets out a framework for both parties to cooperate in aligning the rare earth concentrates from GMEL’s Kvanefjeld Project, with NFC’s substantial rare earth separation experience and capacity, to create a powerful force in global rare earth supply.

Over recent years GMEL has looked to identify and engage groups that have the capability to work with the Company in establishing a vertically-integrated rare earth supply business, in parallel to advancing technical aspects of the Kvanefjeld Project. On the basis of numerous meetings and technical due-diligence conducted over the previous three years, a clear alignment of interests has emerged between GMEL and NFC.

Upon completion, this will represent one of the world’s newest, largest-capacity and most technologically advanced rare earth separation facilities. Of significance, the planned facility is designed to process concentrates of a similar composition to the ‘critical rare earth’ mix aimed to be produced from Kvanefjeld, and the capacity closely matches the volume of Kvanefjeld’s stage 1 projected output.

Under the terms set out in the MoU, both parties intend to increase the technical cooperation to assist in the completion of feasibility studies on Kvanefjeld, and finalise a mining license application. The timing is important as the technical exchange is designed to ensure that Kvanefjeld and NFC’s new separation facility are optimally aligned. Both parties are aiming to establish a strategic cooperation agreement, and map out the structure of a business partnership and associated commercial considerations. The creation of a full value chain will have GMEL well-positioned to commence marketing rare earths, and to secure offtake agreements.

 

© Dow Jones News

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