PEAK ASSET: MORNING WRAP 11 March: ASX 200 futures are pointing up 24 points or 0.3 per cent to 8719 | S&P 500 slips late as oil tempers earlier tumble | ETM clears path for Kvanefjeld case to be heard on merits |

ETM clears path for Kvanefjeld case to be heard on merits

• Tribunal confirms key licence issues should be determined in courts
• Arbitration clause recognised as genuinely ambiguous
• ETM says ruling clears pathway for dispute to be judged on its merits

Special Report: Energy Transition Minerals says a tribunal ruling has set the stage for Danish and Greenlandic courts to decide the key legal issues around its Kvanefjeld rare earths project.

The decision wraps up the jurisdictional phase of arbitration between subsidiary Greenland Minerals and the governments of Greenland and Denmark.

Energy Transition Metals (ASX:ETM) said the ruling brings important procedural clarity, confirming that the main legal questions about Greenland Minerals’ exploitation licence rights will now go before the courts.

The tribunal also confirmed the arbitration clause in the exploration licence was genuinely ambiguous, backing Greenland Minerals’ move to start arbitration.

Managing director Daniel Mamadou said the ruling effectively shifts the dispute into the forum where the substantive legal issues can finally be determined.

“This decision concerns procedural questions about jurisdiction and costs only and does not address the substance of the dispute or the merits of ETM’s case regarding the Kuannersuit Project,” Mamadou said.

“Following the tribunal’s jurisdictional ruling, the case will now proceed through the Greenlandic and Danish courts, where the issues can be examined properly and decided on their merits.”

Arbitration phase concludes

Arbitration started in March 2022 after the Greenland Government said it would not recognise Greenland Minerals’ right to an exploitation licence for Kvanefjeld, following the introduction of the Uranium Act.

The tribunal later ruled Denmark should be removed from the arbitration, and that questions about licence rights and uranium legislation should go to the courts.

While the tribunal also issued a costs order for the jurisdictional phase, ETM said this was within its risk management planning. The application itself will now be stayed while the courts consider the substantive issues.

Claims of contractual breach and damages are preserved and may return to arbitration after the court process concludes.

Strategic rare earths project

Kvanefjeld is one of the world’s largest undeveloped rare earth deposits, with significant amounts of neodymium and praseodymium, which are used in EVs, wind turbines and clean energy tech.

As governments look to secure critical minerals, large rare earth projects like Kvanefjeld are attracting more strategic interest.

Donald Trump’s calls for US control of Greenland since his return to the White House have put further focus on well-placed explorers like ETM.

ETM says it remains confident in its legal case and is still pursuing its right to an exploitation licence for Kvanefjeld.

​​​​​​​Source: Stockhead