Danish court ruling breaks standoff over Energy Transition Minerals’ Kvanefjeld licence claim

• Danish court ruling removes procedural barriers for ETM’s Kvanefjeld licence claim
• Ruling and earlier arbitral tribunal decision endorses company’s approach to moving case forward
• Case against Greenland can now proceed on its merits before High Court

Special Report: Energy Transition Minerals has been bolstered by a Danish court ruling that removes key procedural obstacles that have delayed progress relating to the Kvanefjeld licence claim.

The Copenhagen City Court ruled that Greenlandic authorities shall not be parties to the Danish proceedings brought by the company against the governments of Denmark and Greenland.

This removes a procedural barrier and allows Greenland Minerals – a wholly-owned subsidiary of Energy Transition Minerals (ASX:ETM) – to now pursue its claims on the merits, which is the first of its kind, before the High Court in Greenland. 

Importantly, it marks a major step forward in a case seen as a test of the commitment to the rule of law and Europe’s standing in the global race for critical minerals.

ETM has a right to an exploitation licence for the Kvanefjeld project in Greenland following extensive technical and environmental assessments and over a decade of investment.

However, it was halted after Greenland passed the 2021 Uranium Act, which prohibits exploration for production of uranium above a 100ppm threshold – well below the project’s >300ppm.

The company considers the Uranium Act to be a retrospective decision that was arbitrary and contrary to statutory law in Greenland, the existing exploration licence issued for the project, as well as international investment norms.

A subsequent revision to its exploitation licence application, which excluded the extraction of uranium and other radioactive elements, was also rejected, leading to the arbitration and legal action against the Greenland and Danish governments.

Next steps

The latest decision follows an October 2025 arbitration ruling that found it lacked jurisdiction to rule on the question of the right to an exploitation licence for Kvanefjeld but that ETM’s claims against Greenland on contract breach and damages may still be heard in arbitration when court proceedings are completed.

Both rulings remove key procedural obstacles that delayed progress, allowing the company to bring long-awaited legal certainty to the process.

They also endorse a procedural structure proposed by the company a year ago.

The case will now move forward on two tracks with the main case proceeding against Greenlandic authorities before the High Court of Greenland.

Once this is completed, the case against the Government of Denmark may proceed.

These will allow the substantive issues to be examined.

“This case is about more than a single project. It is about the ability to invest responsibly in Europe’s strategic raw materials,” managing director Daniel Mamadou said. 

“A predictable and fair legal environment is essential if Europe wants to attract the investment needed to meet its climate and industrial ambitions. 

“Today’s welcomed decision allows the real issues to finally be heard – how a lawful, long-term investment was effectively frozen retrospectively and in breach of the agreement with us and in breach (of) Greenland’s own mining legislation. 

“We welcome this clarity, particularly as it confirms the very structure we proposed around a year ago. It is positive that the arbitral tribunal and the Danish court have now endorsed our approach so the case can move forward.”

With more than 1 billion tonnes of resources containing 11.1Mt of rare earths and 593Mlb of uranium, Kvanefjeld has the potential to be a significant producer of both products.

Mining costs are expected to be low due to the massive, mostly outcropping bulk mineral resources.

This is further supported by year-round shipping access that provides cost advantages to potential European customers.

ETM’s feasibility study envisions a mine, a concentrator and refinery, producing a mineral concentrate containing 20-25% rare earth oxide that would be upgraded to high-purity intermediate rare earth products in the refinery.

This article was developed in collaboration with Energy Transition Minerals, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.