Greenland intends to deny the exploration licence renewal for Energy Transition Minerals‘ (ASX: ETM) Kvanefjeld rare earth project, threatening one of the world’s largest undeveloped critical mineral deposits.
The Ministry of Business, Mineral Resources, Energy, Justice and Gender Equality issued a draft decision to decline the application, citing the 2021 Uranium Act — which bans uranium prospecting, exploration and exploitation — and arguing that continued exploration no longer serves a purpose under the existing legal framework.
Shares in the Australian-listed company fell 5.6% to A$0.051 when trading resumed after a halt.
Kvanefjeld sits in southern Greenland with year-round direct shipping access and contains rare earth elements alongside uranium — placing it in direct conflict with the uranium ban. ETM submitted its licence renewal in September 2025, ahead of the formal expiry on December 31, 2025.
ETM rejected the reasoning, calling the draft inconsistent with past regulatory practice. Greenland had previously renewed the licence multiple times after the Uranium Act took effect, and had denied ETM permission to pause exploration spending during ongoing legal proceedings — only to now declare that further exploration lacks purpose.
“This draft position appears inconsistent with the historical treatment of the project,” the company said.
Managing Director Daniel Mamadou said the rationale raises serious legal questions. “ETM has invested in this project over many years, has met all its obligations, and has previously been granted licence renewals, including during the course of the active legal dispute,” he said.
ETM’s subsidiary Greenland Minerals A/S initiated arbitration against the governments of Greenland and Denmark in March 2022, challenging the Uranium Act’s application to its existing licence. Those proceedings remain unresolved. ETM said it will formally respond to the draft decision and pursue all available legal options.
Kvanefjeld ranks among the largest undeveloped rare earth deposits in the Western world. The US and Europe have eyed the project as a key route to diversifying supply chains away from China.
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