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Energy Transition Minerals, Australia's Energy Transition Minerals, faces a likely refusal of a licence renewal for its Greenland project

The Australian'miner' Energy Transition Minerals said that Greenland has informed it of a potential rejection of the exploration licence renewal request for its 'Kvanefjeld Rare Earths Project.

Energy Transition Minerals shares fell 5.6%, to A$0.051, by 0152 GMT after trading resumed following a stoppage on Thursday. The benchmark S&P/ASX 200 index rose 1.5%.

Kvanefjeld, a large-scale project to produce?rare Earths in the west, has the potential of becoming a major producer of minerals critical for consumer electronics.

Energy Transition Minerals said it received a draft of a decision from the Greenland Government indicating the intention of the mineral resources ministry to recommend the denial of the application.

Greenland said that its exploration activities "nolonger serve a purpose", and that under the current legal framework, a licence cannot be granted.

The company stated that the decision was based on a law passed in December 2021 - "the 2021 Uranium Act" - which would ban uranium exploration, prospecting and exploitation.

Energy Transition Minerals filed a claim with an arbitral tribunal in Copenhagen to determine the legal rights of unit Greenland Minerals A/S to receive an exploitation license for 'the project' under this law.

Greenland had previously granted license renewals for the Project, including in the course of an active?legal Dispute and after the introduction of the 2021 Uranium Act, the company stated, calling the draft stance "inconsistent with the historical treatment" of the project. Sherin Sunny, Bengaluru. Sumana Nady and Subhranshu Sahu edited the article.

(source: Reuters)