The Greenland Minerals (ASX:GGG) share price is down 15% today amid government opposition to its Kvanefjeld Project.
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The Greenland Minerals Ltd (ASX: GGG) share price is falling again today after the latest news of the company’s dealings with Greenland’s new government. The winning party of Greenland’s recent snap election is determined to stop developments at the miner’s Kvanefjeld Project.
At the time of writing, the Greenland Minerals share price is down 15.24% trading at 8.9 cents.
Let’s take a closer look at today’s news from the rare earth miner.
New coalition formed; Greenland Minerals future still unknown
Today’s news comes in an update from the company on its battle to keep progressing the development of its Kvanefjeld Project.
The company says there are reports that a coalition government, made of Greenland’s Inuit Ataqatigiit and Naleraq parties, has been created in the wake of the nation’s election on 6 April.
The miner states it will begin discussions with the Government – whose leadership has declared its intention to stop the development of the Kvanefjeld Project.
The BBC reported the snap election was initiated after a huge public backlash of the project caused a collapse of the previous government.
The former government had supported the development, saying it would generate hundreds of millions of dollars annually for the country. Thus, allowing Greenland greater independence from Denmark, of which Greenland is an autonomous territory.
Always a wrangle
Greenland Minerals has been operating in the nation since 2007, when it first acquired the mine site.
Since then, the company has applied for an exploration licence, which it’s still yet to receive.
A multi-year investigation concluded in December 2020, when the former government approved the company’s environmental and social impact assessments.
Greenland Minerals was then to begin a process of public consultation, which quickly became its undoing. The public consultation was originally scheduled for completion by June 2021.
Now, the future of the project is in the hands of a government seemingly determined to put it to bed.
Greenland Minerals share price snapshot
The Greenland Minerals share price has been plunging on the ASX lately, with the latest news adding to its collapse.
Currently, the Greenland Minerals share price is down 51% over the last 30 days.
It’s also down by 68% year to date and 12% over the last 12 months.
The company now has a market capitalisation of around $140 million, with approximately 1.3 billion shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.