The Australian company Energy Transition Mineralswhich has a license for Kuannersuit, received notice from the Greenlandic authorities on Friday 26 June that Naalakkersuisut has rejected their application to extend the company’s exploration license at Kuannersuit.
The authorities have indicated, however, that the license area will not be offered to other companies as long as there are cases that are unresolved.
The Australian company Energy Transition Mineralswhich has a license for Kuannersuit, received notice from the Greenlandic authorities on Friday 26 June that Naalakkersuisut has rejected their application to extend the company’s exploration license at Kuannersuit.
The authorities have indicated, however, that the license area will not be offered to other companies as long as there are cases that are unresolved.
According to the company, it is happening on an illegitimate basis, where authorities and politicians actually disregard legislation and good administrative practice.
A gradual expropriation
To Sermitsiaq, the company’s director Daniel Mamadou says that he will now consider their legal options to protect the shareholders’ rights, and that they believe that Naalakkersuisut’s decision is part of a gradual expropriation.
– This is what happens when ideology is prioritized over science and economic pragmatism, says Daniel Mamadou, who is surprised by the authorities’ lack of understanding of the consequences of their steps.
– It’s not just us, it goes beyond. It goes beyond the entire raw materials industry and the investors. It sends a harmful signal about the predictability of the legislative framework in Greenland. Investors and partners must be able to rely on a clear and consistent approach from the government. When a company is given 48 hours to respond to technical assessments, and significant new exploration data is not sufficiently included in the assessment, it has far-reaching consequences for the entire exploration sector in Greenland, and significantly weakens Greenland’s position as a predictable place to invest, says Daniel Mamadou.
Creative authorities
The company had planned a major exploration effort over the summer in Kuannersuit, where they were, among other things, to take a closer look at some special areas where the content of uranium in the rare earth metals appears to be below the permitted 100 ppm. In addition, it is actually a requirement from the authorities that companies carry out ongoing investigative work in their license areas and not only rely on existing data.
– I think that we try in every possible way to comply with the requirements and guidelines that the authorities set for us. But I don’t think we are met with the same level of professionalism from the authorities. As a company, we have some basic rights that we were given when we were invited to invest and work in Greenland. We find that the authorities are very creative in terms of changing conditions, and in that way they force us to take the case to court, says Daniel Mamadou, who maintains that the company still wants to negotiate.
– Our goal and our mission is not to make money by suing the Greenlandic government and obtaining compensation. We are looking to find the right way to optimize the project for the benefit of everyone, says Daniel Mamadou.
