With the Greenland government preparing to outlaw uranium mining once again, Hudson Resources (TSXV: HUD) is confident that the proposed legislative changes would not impact its exploration licenses on the world’s largest island.
The Government of Greenland recently drafted a bill to ban uranium prospecting, exploration and exploitation, seeking a zero-tolerance policy on the mining and sale of uranium.
While the ban does not cover other radioactive elements such as thorium, the proposed bill does give the government option to extend this to other radioactive elements. The draft bill provides that it is at the government’s discretion as to whether they approve a project based on how uranium waste is handled.
However, Section 3.4 of the draft bill specifically states that the new Act would only apply to licenses granted after it is promulgated. As Hudson’s exploration license for the Sarfartoq rare earth element (REE) and Nukittooq niobium-tantalum projects was granted in 2020, it would not be affected by the new legislation.
The company’s license also does not provide any rights to radioactive elements, and work to date has shown that the Sarfartoq project does not contain elevated levels of uranium.
The Nukittooq project does have uranium values above background levels, and the company said it will investigate how the uranium will be handled within government guidelines.
The Greenland government has also initiated a consultation process that closes on August 2, in which Hudson will participate.
As such, the Canadian-based miner said it will continue to advance what it considers to be vital projects in supporting the green economy in Europe and North America.
The Sarfartoq REE project currently has an NI 43-101 resource outlining 35 million kilograms of neodymium oxide and praseodymium oxide, the two key components in permanent magnets driving the green revolution.
The Nukittooq project has some of the highest reported niobium assays in the industry.
Shares of Hudson Resources were down 21.4% by midday Thursday, sending the company’s market capitalization to C$19.6 million.