Status of Tanbreez Mining Greenland A/S' application for exploitation permit

TANBREEZ Mining Greenland A/S (TANBREEZ) has an exploration permit for a eudialyte deposit in Killavaat Alannguat between Narsaq and Qaqortoq. The eudialyte mineral has a high content of niobium, tantalum, zirconium, and rare earths. These elements can for example be used in alloys and as catalysts, as well as in mobile phones, wind turbines and rechargeable batteries. In addition to eudialyte, the deposit contains feldspar and amphibole minerals. The eudialyte is soluable in nature, and is closely related to feldspar and amphiboles in many other places in the world, e.g. occurring as sand in beaches.

Tanbreez's plan is to crush 500,000 tonnes of ore per year in a quarry. Once the rocks are crushed, the ore will be separated into red (eudialyte), white (feldspar) and black (amphibole) minerals through magnetic separation. Tanbreez wants to export the red eudialyte minerals to a process plant abroad. Using sulfuric acid (amongst others) during the processing, the eudialyte will be separated into individual elements, where the saleable elements will be sold.

Like many other mining projects, there is a risk that the project may fail. For this particular project, the current lack of eudialyte separation method provides a risk. To eliminate this risk, Tanbreez plans a relatively small production in the beginning to be able to develop the project as optimally as possible. Once the production is optimal, it then could be extended.

Tanbreez and the Ministry of Mineral Resources and Labor are currently in a direct and constructive dialogue regarding Tanbreez’s documentation, and delineation of a commercially viable deposit, which according to Mineral Resources Act, is a prerequisite for granting an exploitation license. Once the project starts, the construction, exploitation and decommissioning activities will comply with the world's best international standards concerning safety, health, environment, resource utilization and social sustainability.

Minister for Mineral Resources and Labor, Erik Jensen, states, “This is a clear-cut mining project that can have a lifetime of decades if everything goes well. There is a strong need to turn the stagnation in South Greenland into growth. We therefore must do our best to ensure that this project can benefit Greenland, the Kujalleq Municipality and Tanbreez. The Government’s goal is to create jobs, and to ensure that the society benefits as much as possible from the project.”

Mayor of the Kujalleq Municipality, Kiista P. Isaksen, says, "The Kujalleq Municipality is looking forward to the efforts to establish mining production for Tanbreez. Since 2014, the Municipality has had a clear goal of benefitting from the mining projects as much as possible. It is not just about jobs, but also about participating in servicing the mine as much as possible. The possibility that companies in the Municipality can secure service contracts is an element for a successful business development. Here is a chance to turn the negative spiral around in the Municipality."

Greg Barnes, Managing Director of Tanbreez Mining Greenland A/S states, “It is with great relief that we can now see the Tanbreez project is moving forward. We from the Tanbreez team would like to thank Minister Erik Jensen, and especially for the help from the Municipality Kujalleq and mayor Kiista P. Isaksen.”

 

For further information, please contact Deputy Minister Jørgen Hammeken-Holm at joeh@nanoq.gl, or by telephone +299 34 68 46.