Feasibility Program

Feasibility studies to establish the best possible development scenario for a multi-element mining operation to exploit Kvanefjeld’s resources are now well-advanced. In early 2010, a first snap shot at a viable development scenario was released as an Interim Pre-feasibility report (link to pdf). This highlighted that a mining operation could be developed that would have one of the largest rare earth production capacities of any operation globally. The Interim report also demonstrated the strength of a multi-commodity production profile, which ensures highly competitive unit costs for specific products.

Importantly, the process flow sheet and economic metrics of the Kvanefjeld project that were outlined in the 2010 Interim report will soon be superseded owing to key technical developments that will inevitably lead to a far more efficient development scenario. These developments are based on an ability to now effectively concentrate the economic minerals into a small mass fraction for highly efficient downstream processing.

The feasibility program is managed by a first class in-house technical team that covers all the key disciplines that are required to deliver the project. This includes expertise in:

•   large-scale project management,
•   geology, resources and mineralogy,
•   mineral beneficiation and geometallurgy,
•   hydrometallurgy,
•   process engineering,
•   social and environmental sustainability,
•   commercial development and marketing.

The company also utilises internationally-recognised consultants as need be.

The company is evaluating two main development options for the Kvanefjeld project. The first option considers a scenario where a processing plant and related infrastructure would be located in the Narsaq valley, almost adjacent to the Kvanefjeld resource. This would result in much of the infrastructure being located close to the existing town of Narsaq. The second option considers a scenario where a processing plant and related infrastructure would be located to the east of the Ilimaussaq Complex, and closer to Narsarsuaq where the international airport is located. In this scenario, mining would likely commence at Zone 3. Extensive environmental studies and stakeholder engagement programs are underway to establish the preferred option.

Figure 1: Sites currently under evaluation for key infrastructure items including processing plant, and port facilities. All elements of the project are located on a single broad peninsula. Roadway access is anticipated to link resource hubs, processing plant, port and accommodation village.