China's Shenghe Resources Holding Co Ltd, the largest shareholder in Greenland Minerals Ltd, has formed a joint venture with subsidiaries of China National Nuclear Corporation (CNNC) for the trading and processing of rare earth minerals. The creation of the joint venture, China Nuclear Hua Sheng Mining Ltd, supports the development of Greenland's Kvanefjeld Project.
Greenland Minerals, based in Australia, entered a non-binding memorandum of understanding with Shenghe in August 2018 for the offtake of the total output of rare earth elements from Kvanefjeld in either chemical or mineral concentrate. Greenland Minerals said Hua Sheng would be the designated agent for Shenghe for the import, export and trading of rare earth minerals and products.
In May 2015, Greenland Minerals completed a feasibility study for the Kvanefjeld uranium and rare earth element project in southern Greenland in and the following November the project received pre-hearing approvals from the government of Greenland to move into the permitting phase. The government also approved the terms of reference on the agreed initial development strategy for Kvanefjeld. The Kvanefjeld project will include a mine, a concentrator (producing a mineral concentrate containing 20-25% rare earth oxide, zinc concentrate and fluorspar) and a refinery.