It appears the GoG will/may make a final decision before the end of June 2023 on whether ETM can proceed with the mine at Kuannersuit. If the decision is negative for ETM, how will this effect the arbitration proceedings?
Article from Sermitsiaq - Friday 19th May 2023 (See translation below).Kuannersuit:
Uncertainty about compensation amountNaalakkersuisut is expected to stop the case processing of theKuannersuit project in June following a recommendation from the department.The company behind the project is seeking billions incompensation, but will not guarantee legal costs if they lose.
Naalakkersuisut is expected to make a final decision on ‘Transition EnergyMinerals' exploitation permit at Kuannersuit before the end of June.
The recommendation from the ministry is that the project must be stoppedbecause it does not comply with the law on the exploration and exploitation ofuranium, which was adopted in December 2021. Trine Juncher Jørgensen.
Transition Energy Minerals (formerly Greenland Minerals) continues to tryto get the arbitration court's word that their project in Kuannersuit is notcovered by the uranium law that was adopted in December 2021. At the same time,the case processing of their application for an extraction permit continues.But the proceedingsmay soon be over, as Naalakkersuisut is expected to follow a recommendationfrom the Ministry of Raw Materials that the project must be stopped.
This is written by the newspaper Sermitsiaq.–
The recommendation from the department is that the project must be stoppedbecause it does not meet the requirements of the Act on the Exploration andUtilization of Uranium.We expect anannouncement from Naalakkersuisut before the end of June, says departmentmanager for raw materials, Jørgen Hammeken-Holm.
Clarification of compensation claims
Most recently, the Danish media Politiken and Danwatch have publishedarticles about the arbitration case, where it appears that the compensationclaim from Energy Transition Minerals against the self-government and theDanish state will amount to DKK 15 billion.
It is not quite correct.
The amount of 15 billion originally comes from an article on the AttorneyGeneral's own website from October last year, where it appears that the company"has initiated an arbitration case with a view to obtaining permission toextract the raw materials, alternatively to obtain compensation for the valueof the mining project.The mining company hasprovisionally calculated the value of the mining project and thus the possiblecompensation claim at approx.15 billion kroner.'However, the Attorney General has clarified to Sermitsiaq thatthe source of the figure is the mining company's complaint to the arbitrationcase and not the Attorney General.
In addition, the figure is unfortunately not correctly reproduced, as theAttorney General has mistakenly used Australian dollars as the basis for thecalculation rather than American dollars, as it should be.It should thereforehave read 20 billion kroner and not 15 billion kroner, since it is 3 billion USdollars.
(20min delay)