Wedoany.com Report on Mar 11th, Energy Transition Minerals Ltd (ASX:ETM) has announced that an arbitral tribunal ruling has paved the way for key legal issues concerning its Kvanefjeld rare earth project to be addressed by courts in Denmark and Greenland. The ruling concludes the jurisdictional phase of the arbitration between its subsidiary, Greenland Minerals A/S, and the governments of Greenland and Denmark, providing procedural clarity and allowing the main legal issues to be heard in court.
The tribunal also noted ambiguity in the arbitration clause within the exploration license, supporting Greenland Minerals' initiative to commence arbitration. Managing Director Daniel Mamadou stated: "This decision relates solely to procedural matters of jurisdiction and costs and does not touch upon the merits of the dispute or the value of ETM's case regarding the Kuannersuit project. Following the tribunal's jurisdictional ruling, the case will now proceed through the courts of Greenland and Denmark, where the issues can be properly examined and decided on their merits."
The arbitration began in March 2022 after the Greenland government indicated it would not recognize Greenland Minerals' rights to the mining license for Kvanefjeld following the enactment of the Uranium Act. The tribunal later ruled that Denmark should be removed from the arbitration and that questions regarding license rights and uranium legislation should be submitted to the courts. Although the tribunal issued a costs order for the jurisdictional phase, ETM stated this was within its risk management planning. The application is now stayed pending court consideration of the substantive issues, while claims for contractual breach and damages may return to arbitration in the future.
Kvanefjeld is one of the world's largest undeveloped rare earth deposits, rich in neodymium and praseodymium, minerals used in electric vehicles, wind turbines, and clean energy technologies. As nations seek to secure supplies of critical minerals, major rare earth projects like Kvanefjeld are attracting increased strategic attention. ETM expressed continued confidence in its legal case and its ongoing pursuit of mining license rights for Kvanefjeld.
