(Sharecast News) - GreenRoc Mining said in an update on Wednesday that it expected significant progress following amendments to Greenland's mining laws on 1 January.
The AIM-traded company said it expected to expedite its application for an exploitation licence for the Amitsoq Graphite Project in south Greenland, with plans to submit it in the first half of this year.
Previously, obtaining an exploitation licence was contingent on completing extensive environmental impact assessment (EIA), social impact assessment (SIA), and impact benefit agreement (IBA) processes.
However, the revised law now permits applications for the licence to be processed concurrently with the assessments, potentially shortening the timeline significantly.
Under the new law, provided a viable mineral deposit had been identified and necessary obligations were met, an exploration licence holder would be entitled to an exploitation licence.
GreenRoc said it had already submitted its draft project description and scoping studies for Amitsoq, supported by a preliminary economic assessment (PEA) in 2023.
Additionally, GreenRoc said it was expanding its mineral exploration licence near Nanortalik in south Greenland, covering about 50 square kilometres.
The expansion encompassed the last significant graphite mineralisation area not under GreenRoc's licence, and is adjacent to existing licence areas.
GreenRoc said it was aiming to consolidate its exploration rights in the Nanortalik Graphite District, further enhancing its position in the region.
To streamline its operations, GreenRoc said it had decided to surrender its exploration licence in north Greenland, focussing solely on developing the Amitsoq graphite deposit into a producing mine.
"The changes in the Greenlandic Mineral Law that came into effect on 1 January are very positive for GreenRoc," said chief executive officer Stefan Bernstein.
"The fact that our application for an exploitation licence can now run in parallel with the environmental and social impact assessment studies we are undertaking should significantly shorten the processing time for the exploitation licence.
"It also further illustrates Greenland's commitment to simplifying its mineral administration in order to establish a solid mineral extractive industry in the country."
At 1200 GMT, shares in GreenRoc Mining were down 0.05% at 1.85p.
Reporting by Josh White for Sharecast.com.
Greenroc Mining (GROC)