The Kvanefjeld project has been designed with a focus on minimising impacts on the local environment. Extensive baseline studies have been conducted which have provided a deep understanding of the project's environment.

The local geography is primarily an active erosional zone. As a result, the minerals that comprise the Ilimaussaq complex, including lujavrite (rare earth ore), have been widely dispersed through the surrounding environment. Consequently a number of unusual elements are naturally elevated in the project area, often above standard background levels. This creates an atypical baseline, and reference point for the environmental impact assessment of mining related activities.

Environmental impact studies have been completed which show the project does not create significant issues for the local environment or residents of nearby communities. Extensive radiation studies show the increase in radiation exposure caused by the project is negligible. The level of dust generated by the project are very low and well below European standards. All process water is controlled and isolated from the environment with the impact on the fjords studied in detail. There is no competing land use for the project area. 

All mining projects produce tailings and mine material that is not economical to process (waste rock).

Tailings are to be stored in a basin (Tasaq) that sits to the south of the Narsaq valley and close to the Kvanefjeld deposit. The basin lies on the Ilimaussaq Complex and the water within the basin is significantly influenced by the alkaline chemistry of the rocks. The water is devoid of life and is not potable. The underlying rock is crystalline and impermeable. These characteristics make the basin/lake an ideal location for tailings storage.

Waste rock will be stockpiled to blend with natural contouring. The majority of waste rock is basalt, which is environmentally benign. The second most abundant waste rock is naujaite, an alkaline rock of the Ilimaussaq complex that is already widely dispersed in the area.

All environmental aspects of the project have been extensively studied by leading consultants that have provided technical reports for the environmental impact assessment.