Canada-based Hudson Resources says it intends to advance its Sarfartoq rare earth project in Greenland, although a second company project in Greenland could be in jeopardy, Kallanish reports.

The Sarfartoq project complies with new restrictions imposed last week by the Greenland government. The company’s Nukittooq niobium-tantalum project may be in trouble because the uranium levels at that project are in excess of what Greenland is now permitting. The company says it is reviewing its options on that project. Hudson Resources says the average uranium level at Sarfartoq is about 10 parts-per-million and the level at Nukittooq is in excess of 100 ppm.

Greenland’s ban on prospecting, exploration and exploitation affects projects where the average uranium content is 100 ppm or greater. Many rare earth deposits in Greenland contain varying levels of uranium. The Greenland ban is also impacting other companies including Australia-based Greenland Minerals, which has been advancing its Kvanefjeld uranium-rare earth project in southwest Greenland.

The legislation was advanced by the ruling left-leaning Inuit Ataqatigiit party that came to power last April. It had campaigned on banning uranium mining and halting the Kvanefjeld RE project. The bill was part of a new effort to make the Danish territory more environmentally responsible.

Both Hudson projects are in southwest Greenland. The company says it will “focus efforts” on the Sarfartoq project with the new Greenland law in effect. That project features high levels of neodymium and praseodymium, both key elements in magnets used in wind turbines and hybrid electric vehicles. The project has indicated and inferred resources of 27 million kilograms of neodymium oxide and 8m kg of praseodymium oxide. More than 31,000 metres have been drilled. The mine would operate for 21 years. A preliminary economic assessment was completed in 2011. The Nukittooq project hosts some of the highest reported niobium assays.

“We are very excited about the future of the Sarfartoq REE project and the ability to be part of the critical metal supply chain into Europe and the Americas,” says president Jim Cambon in a statement.

His company also owns a 31.1% equity interest in Greenland’s White Mountain anorthosite mine that is not affected by the new uranium rules.