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Eclipse Metals out to revive Ivittuut’s role in supply of critical minerals

Published 10/04/2024, 02:10 pm
Updated 10/04/2024, 02:30 pm
© Reuters.  Eclipse Metals out to revive Ivittuut’s role in supply of critical minerals

Eclipse Metals Ltd (ASX:EPM) is committed to return the remote southwest Greenland locality of Ivittuut to importance on a global scale through its potential role in supplying critical resources necessary to provide for a cleaner, greener and more sustainable future.

While Ivittuut, formerly known as Ivigtût, drew plenty of attention for holding the world’s largest reserve of naturally occurring cryolite that was mined from 1854 until the mid-1980s, it is the key critical minerals termed rare earth elements (REE) that are likely to put it back on the map.

With cryolite mining the now abandoned township helped win World War II as the mineral was used in the manufacturing of fighter planes.

Pursuing critical minerals

Now Eclipse is making strides in proving up commercially viable REE deposits at scale at its flagship Ivigtût Project with these being critical minerals for the pursuit of sustainable future technologies that will make the world cleaner and greener for the benefit of current and future generations.

At Ivigtût the company is also pursuing quartz, which is essential for the production of photovoltaic (PV) products, high-end electronics and semiconductors.

These efforts are bolstered by Greenland's stable mining environment, favourable regulatory framework and long history of cryolite mining.

An aerial view of the cryolite mine in 1960.

Crucial role of cryolite

An article in the Smithsonian Magazine looks back at the cryolite and the crucial role it played, particularly during WWII, as it was once used in the production of aluminium.

It states that Ivittuut was founded in 1854 and once held the world’s largest reserve of naturally occurring cryolite. The Inuits, who liked to camp there during the summers, had long known about cryolite, which they would add to their snuff or tobacco.

“In the beginning of the 18th century, there were samples of cryolite sent to Copenhagen, probably by a German named Karl Ludwig Giesecke, an employee of The Royal Greenland Trading Department (KGH) owned by Denmark,” said Peter Barfoed, a former Ivittuut resident.

After Danish chemist Julius Thomsen patented a method to separate cryolite into soda in 1853, demand increased and mining production began the next year. According to ‘The History of the Cryolite Industry 1847–1990’, the mine reached its peak level of production in 1942 when 86,000 tons were shipped to the US and Canada for aluminium production. Then again in 1985, right before the mine closed, shipment spiked to 110,000 tons.

Protection from the US

The article said that after the Nazis occupied Denmark in 1940 and America got involved in WWII in 1941, Ivittuut became a crucial site. Though Denmark operated the mine since 1854, the US protected it during the war so that the Allies could mine the cryolite for use in fighter plane manufacturing.

Barfoed explained that it was such a key site that around 500 US soldiers guarded the mine and its 100 to 200 miners.

He said the US Navy also built a naval base three miles away in Kangilinnguit, formerly called Grønnedal, and the US Coast Guard built a base across the fjord from Ivittuut, holding hundreds more soldiers.

After the war, Denmark continued to mine the mineral until the site closed around 1987.

Ivittuut’s main draw today is tourism and around seven buildings are still in good shape with newly painted exteriors. Image Patrick Sgro.

Tourism has been the largely deserted town and mining area’s main draw since the mine closed, including a cemetery established above ground due to rock just below the surface and a lack of soil. The history, natural beauty and mining relics, including a large flooded open pit, with Baroed describing Ivittuut as “a crown jewel of Greenland”.

READ: Eclipse Metals spearheads critical mineral exploration in Greenland as markets recognise value

Committed to ESG

With REEs so important for a cleaner future, it is appropriate that Eclipse is focused on meeting its own exacting environmental, social and governance (ESG) standards in pursuit of these critical minerals.

In Greenland, this means working to preserve the country’s domestic mining heritage by collaborating with the Sermersooq municipality and local communities.

Eclipse is also undergoing rigorous environmental and social impact assessments in preparation for its mining licence and to progress towards production readiness.

Along with its vision for sustainable mining and an eye on the minerals that will count for a lot in the coming decades, Eclipse's proactive engagement with stakeholders and government in Greenland has fostered strong relationships, crucial for the advancement of its project.

Eclipse is aligned with the European Union’s initiative to secure a stable supply of critical raw materials and as a member of the European Raw Materials Alliance (ERMA), is working to recover these materials.

Read more on Proactive Investors AU

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