Greenland OKs EU-backed graphite project for 30 years

GreenRoc Mining (LSE-A: GROC) jumped on Tuesday after the Greenland-focused critical minerals explorer secured a 30-year exploitation licence for its Amitsoq graphite project, paving the way for its production.

Greenland’s business and mineral resources minister, Naaja Nathanielsen, signed off on the licence earlier this week, marking the third such permit granted by the Arctic island this year.

“[The] exploitation licence is the result of focused political efforts to make Greenland more attractive for responsible investments, while seriously taking into account the concerns for people and the environment,” Nathanielsen said in a statement.

Stefan Bernstein, GreenRoc’s CEO, described the licence as “a very important milestone,” highlighting graphite’s important role in the energy transition and Europe’s lack of a secure supply.

Shares of GreenRoc surged as much as 19% following the announcement, before paring gains. The company has a market capitalization of approximately £7.5 million.

High-grade deposit

Located in the Nanortalik region of southern Greenland, the Amitsoq project is host to one of the world’s highest-grade graphite deposits, with an estimated JORC-compliant resource of 23 million tonnes at an average grade of 20% graphitic carbon, for a total graphite content of 4.71 million tonnes.

The site hosts a historic open-cut mine that was last active in 1922. GreenRoc is focused on fast-tracking development of the mine, which, once operational, is expected to produce approximately 80,000 tonnes of graphite concentrate annually.

Earlier this year, Amitsoq was granted “strategic project” status by the European Union for its potential to become a key supplier of graphite, which the bloc designated as a critical raw material.

Greenland, despite boasting a large endowment of natural resources, has seen a slow buildup in its mining sector due to strict regulations and limited access to financing. However, activity has picked over the past year amid renewed US interest in the Danish territory.

In addition to Amitsoq, GreenRoc also holds an ilmenite project and an iron project on the island.