Copenhagen Court Advances ETM’s Kvanefjeld Licence Claim After Uranium Act Dispute
Energy Transition Minerals secures a pivotal court ruling enabling progress on its Greenland rare earths project licence claim, challenging retrospective uranium legislation.
- Copenhagen City Court removes procedural barriers for ETM’s Kvanefjeld licence claim
- Dual legal track established, main case in Greenland, subsequent case in Denmark
- ETM challenges retrospective application of Greenland’s 2021 Uranium Act
- Rulings follow arbitration decision, clearing delays and enabling claims for damages
- Case seen as a test of legal certainty for European critical minerals investment
Legal Breakthrough for Kvanefjeld Project
Energy Transition Minerals Ltd (ASX – ETM) has achieved a significant legal victory with the Copenhagen City Court ruling that clears the way for its exploitation licence claim for the Kvanefjeld rare earth elements project in Greenland. This decision removes longstanding procedural hurdles that had stalled progress, allowing ETM to advance its case against the Governments of Greenland and Denmark.
The court’s ruling establishes a dual-track legal process – the main case will proceed before the High Court in Greenland, while a subsequent case may be heard in Denmark after the Greenland proceedings conclude. This structure aligns with ETM’s proposed approach, endorsed by both the arbitration tribunal and the Danish court, promising a more efficient and transparent resolution.
Challenging Retrospective Legislation
At the heart of ETM’s claim is the contention that Greenland’s 2021 Uranium Act was applied retrospectively, effectively freezing the project despite prior approvals and extensive investment. ETM argues this retrospective application breaches Greenland’s own mining laws, the existing exploration licence, and international investment norms, undermining legal certainty for investors in Europe’s strategic raw materials sector.
The Kvanefjeld Project holds one of the world’s largest deposits of rare earth elements, critical for the global energy transition. The project’s halt following the Uranium Act has been a significant setback, not only for ETM but also for Europe’s ambitions to secure reliable sources of these essential minerals.
Implications for Investment and Legal Precedent
ETM’s Managing Director, Daniel Mamadou, emphasised the broader significance of the case, framing it as a test of Europe’s commitment to a predictable and fair legal environment for strategic investments. The ruling signals a potential shift towards greater legal clarity and investor protection in the region, which could influence future projects in Greenland and beyond.
Following an earlier arbitration ruling that lacked jurisdiction over the licence question but allowed claims for contract breach and damages, the recent court decision removes key procedural delays. This paves the way for substantive examination of ETM’s claims and could set important precedents for how retrospective legislation is treated in the context of international investment.
While the legal process is far from over, the court’s endorsement of ETM’s procedural framework marks a crucial step forward, renewing hopes for the project’s eventual development and contributing to the broader narrative of securing Europe’s critical minerals supply chain.
Bottom Line?
ETM’s legal pathway is now clearer, but the final verdict will shape the future of critical minerals investment in Greenland and Europe.
Questions in the middle?
- How will the High Court of Greenland rule on the substantive exploitation licence claim?
- What financial and operational impacts will the legal proceedings have on ETM’s project timeline?
- Could this case influence legislative approaches to mining and investment protections in Greenland and Europe?
