Energy Transition Minerals (ASX: ETM) has accused Greenland of effectively seizing one of the world’s largest rare earth deposits outside China by blocking development of the Kvanefjeld project and refusing to renew its exploration licence.
The Australian-listed company has invested approximately $150 million in the project since 2013, advancing it through resource definition, environmental studies, and public consultation before submitting a mining licence application in late 2020. However, Greenland’s coalition government subsequently enacted Act 20, legislation banning projects with uranium concentrations exceeding 100 parts per million, effectively halting Kvanefjeld’s application. Managing director Daniel Mamadou contends the legislation was specifically designed to stop the project after the government campaigned against its development. The dispute has escalated into a legal battle spanning more than three years of arbitration and court proceedings, with the central question being whether Act 20 applies retroactively to Kvanefjeld and whether such application constitutes expropriation. ETM argues that exploration results from 2025 identify rare earth mineralization with uranium levels well below the legal limit in unexplored areas, and proposes separating uranium from rare earth concentrate and permanently returning it underground. Kvanefjeld hosts critical rare earth elements including neodymium, praseodymium, dysprosium, and terbium, essential for permanent magnets used in electric vehicles, wind turbines, and defence technologies.
ETM previously estimated the project could supply up to 15% of global rare earth production, potentially providing Europe with a significant non-Chinese source of critical minerals. While pursuing Kvanefjeld through legal channels, ETM has diversified by acquiring the Penouta brownfield project in Spain, aiming to restart Europe’s only producing tantalum mine.
