A decision rooted in the 2021 Uranium Act
According to the company, Greenland’s mineral resources ministry issued a draft ruling stating that the company’s exploration activities were “no longer considered to serve a purpose” and that a licence could not be granted under the current legislative framework. The position stems from a law enacted in December 2021 — the 2021 Uranium Act — which effectively bans uranium prospecting, exploration and exploitation. ETM describes Kvanefjeld as a large-scale project with the potential to become a significant western world producer of critical minerals used in the manufacture of consumer electronics.
The presence of uranium within the Kvanefjeld deposit is central to the legal dispute. Extracting rare earths from the site involves processing associated radioactive materials, bringing the project within the scope of Greenland’s uranium legislation.
An ongoing arbitration case since 2023
ETM notes that Greenland had previously granted licence renewals for the project, including during the course of an active legal dispute and after the introduction of the 2021 Uranium Act. The company describes the preliminary position as “inconsistent” with the historical treatment of the project. In 2023, ETM filed a statement of claims with an arbitration tribunal in Copenhagen to determine the legal right of its subsidiary Greenland Minerals A/S to be granted an exploitation licence.
The outcome of the arbitration proceedings could determine the project’s future. The Greenland government has yet to issue a final decision, with ETM retaining the opportunity to respond to the preliminary ruling.