No Uranium Take-Over for Shenghe

Greenland’s authorities state that Leshan Shenghe, a Chinese corporation, does not hold a preferred option to take over 60 percent of the Kuannersuit uranium project.

The Greenlandic Department of Minerals has established, after an extensive legal investigation of the agreement between Greenland Minerals and Energy (GME) and Shenghe, that the Chinese company does not hold a preferred option of acquiring up to 60 percent of the Kvanefjell/Kuannersuit project in the southernmost part of Greenland. This according to the Greenlandic online newspaper sermitsiaq.ag (Danish only.)

Shenghe’s Stock Exchange Notification

Leshan Shenghe started the speculations about whether Greenlandic uranium deposits had been sold to Chinese interests when it submitted a notification to the Chinese Stock Exchange.

Back then, in October 2016, the GME leadership denied that such an option existed, as claimed by the Chinese.

The self-rule authorities (Naalakkersuisut) wanted to investigate the agreement, however, GME initially refused to hand out its agreement with the Chinese company, which caused an outrage.

Threatened to pull the licence

Only when Naalakkersuisut threatened to withdraw GME’s license did it produce the agreement, so that the self-rule authorities could start their investigations. This investigation has now resulted in the public realization that no such preferred option exists.

In a press statement from the Department of Minerals, Head of Department Jørgen T. Hammeken-Holm says that:

No right to take over

- The legal considerations are now concluded, and the evaluation is unambiguous: The agreement does not give Leshan Shenghe the right to take over a deciding majority of the GME parent company. The agreement only gives Leshan Shenghe the right to acquire 12.5 percent of GME. The deciding influence of GMS’s Greenlandic subsidiary still lies with the parent company, Greenland Minerals and Energy Ltd.