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BUSINESS OPPORTUNITIES IN GREENLAND PROJECT OVERVIEW 2018
2 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 BUSINESS OPPORTUNITIES IN GREENLAND PROJECT OVERVIEW 2018 Published by the Arctic Cluster of Raw Materials (ACRM) in collaboration with the Confederation of Danish Industry (DI), February 2018 di.dk/english acrm.dk Prepared by Up Front Communication ApS, Managing director Hans Bak UP Front COMMUNICATION APS Up-North ApS, Managing director Martin Schjøtz-Christensen The publication was made possible through the financial support of The Bank of Greenland Edited by Mads Qvist Frederiksen, Head of Secretariat, ACRM Photos: Hans Bak/UP Front Communication ApS: Page 14 and 57. Kalaallit Airports: Page 60. Ivars Silis: Page 56. Kommuneqarfik Sermersooq: Page 45. Mads Pihl/Visit Greenland: Page 4, 6, 41 (bottom) and 42 (bottom). Petter Cohen, Xtravel/Visit Greenland: Page 42 (top). Rebecca Gustafsson/Visit Greenland: Page 41 (top). Print: Kailow Graphic A/S ISBN 978-87-7144-135-2 (print) 250.02.2018
BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 3 ARCTIC CLUSTER OF RAW MATERIALS The Arctic Cluster of Raw Materials (ACRM) is established by Greenland Business Asso- ciation (GE), The Confederation of Danish Industry (DI) and the Technical University of Denmark (DTU). The cluster was originally funded by the Danish Industry Foundation (IF). Purpose ACRM is a platform for companies with interests, experience and competences within the extractive industries. ACRM’s main purpose is to strengthen the competitiveness in Greenland and Denmark in the industry and contribute to sustainable growth and employment in both countries. To obtain this goal, ACRM will build up and support busi- ness cooperation, industry consortia and business concepts. Also, ACRM will provide technology and skill enhancement for Danish and Greenland companies in the Arctic extractive industries, especially in Greenland. Activities ACRM will work closely with strategic knowledge-exchange networks, academia and industrial innovation processes. The establishment of consortia within the extractive industries and support industries will secure both the level of competences in the mar- ket and prepare companies for the industry standards, contracts, certification and other necessary requirements. This will be achieved through conferences, round table discus- sions, industry seminars and workshops in Greenland etc. Member Requirements Members of ACRM commit to share their knowledge and competences with other mem- bers to make sure the industry cluster will be a visible platform, which can promote Dan- ish and Greenland companies on a high political and commercial level. Members will get access to all cluster activities, including exhibitions in Canada and workshops in Greenland.
4 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 5 FOREWORD The Arctic is a unique place to do business in and from. The four million people living in the region are spread around countries like Canada, Russia and the USA – and at the centre of them all is Greenland. There are many potential business opportunities across the region. Whether it is fishing, tourism, mining or infrastructure, the projects are there and so are the ambitions. Companies working in the Arctic will have to consider the in- genious people who has inhabited the region for thousands of years as well as the planet when doing business in the Arctic. Here, the UN Sustainable Development Goals have an important role to play in guiding strategies and ensuring social licenses to operate. At a regional level, the Arctic states and other international actors are increasingly engaging in the region making it a venue for both cooperation and competition over economic and security interests. The Sustainable Development Goals offer a good framework for cooperation in the Arctic. The universal terminology allows for the public and the private sector to set direc- tions and ensure sustainable economic development. Economic development is important in the Arctic. The region should not only be associ- ated with protective national parks but also as a place for doing business, making new investments and seizing unique opportunities. Obviously, climate change has a particu- larly strong impact on the vulnerable region. Yet, the global temperature increase allows new economic opportunities in the Arctic through new seaways, tourism and access to resources. Climate changes are influencing the melting of permafrost and ice caps as well as being increased through feedback loops in the Arctic. This report takes its departure in the Arctic mineral extraction industry and highlights the current prospects and developments in one arctic state: Greenland. It showcases some key facts about Greenland’s administration and legislation as well as operational insights. But most importantly, it gives you an extract of the main investment opportuni- ties found in Greenland’s mineral rich underground. The report is developed by the Arctic Cluster of Raw Materials (ACRM), which is an EU accredited cluster of excellence comprising of Danish and Greenlandic enterprises. ACRM provides company profiles and industry information on Greenland in all phases of the mining life cycle. To learn more about ACRM, please check our webpage at www.acrm.dk We hope you will enjoy the report. Mads Qvist Frederiksen Head of Secretariat, ACRM
6 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 7 CONTENTS 8 A Nationless area in the Arctic 11 New Arctic shipping routes 12 The Arctic Circle and Greenland 15 OPERATING IN GREENLAND 17 Greenland at a glance 18 MINERALS AND HYDROCARBONS 19 The Public Administration 22 Mining projects 22 Existing and potential mining projects in Greenland 24 ¶ Greenland Ruby 26 ¶ Hudson Greenland 28 ¶ Ironbark Zinc 30 ¶ TANBREEZ Mining Greenland 32 ¶ Greenland Minerals and Energy 34 ¶ General Nice Development 36 ¶ North American Nickel 37 ¶ Alopex Gold 38 ¶ FBC Mining 39 ¶ Dundas Titanium 40 ¶ Alba Mineral Resources 43 INFRASTRUCTURAL DEVELOPMENT PROJECTS 44 Collaboration and Investments 45 Selected infrastructure projects in key figures 46 ¶ Sikuki – Nuuk Harbour 47 ¶ Kalaallit Airports 47 ¶ Mittarfeqarfiit 48 ¶ Nuuk Airport (Kalaallit Airports) 49 ¶ Ilulissat Airport (Kalaallit Airports) 50 ¶ Qaqortoq Airport (Kalaallit Airports) 51 ¶ Tasiilaq Airport (Mittarfeqarfiit) 52 ¶ Ittoqqortoormiit Airport (Mittarfeqarfiit) 53 ¶ Kangerlussuaq – runway upkeep, new port and road to Sisimiut 54 ¶ Siorarsiorfik – Nuuk City Development 56 HYDROPOWER AND CLEAN ENERGY 58 Hydro plants in Greenland 59 KEY ORGANISATIONS 61 OUTLOOK 62 SOURCES
8 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
A NATIONLESS AREA
IN THE ARCTIC
The Arctic covers an area of about 14.5 million km2 of The 1982, United Nations Convention on the Law of
which some parts are currently outside existing terri- the Sea (UNCLOS), however, entitle states to extend
torial boundaries. The Arctic states (Canada, Russia, their territorial demands if they can prove their con
Norway, the USA and the Danish Realm) are all work- tinental shelf reaches beyond 200 nautical miles.
ing to extend their territorial rights in the North. This will grant them an exclusive right to exploit
natural resources on and below the seabed. Exclusive
The efforts are rooted in a wish to establish rules fishing rights are not part of UNCLOS.
for shipping in the area and to benefit from the raw
material deposits that may be found there. The latter Danish Submissions to UNCLOS
is, however, currently of less significance, partly The Kingdom of Denmark has submitted three
because the raw materials located outside current partial submissions relating to Greenland to the
territorial boundaries are difficult to access, and part- Commission in 2012, 2013 and 2014. On 15 Decem-
ly because it is assessed that 80 per cent of the Arctic ber, 2014, the third partial submission – regarding
raw material deposits are found within already estab- the area north of Greenland – was submitted cover-
lished boundaries. ing an area of 895,541 km2. The partial submission
for Greenland from June 2012 concerned the area
Exclusive Economic Zone (about 114,929 km2) south of Greenland and the
All states are currently allowed to establish an exclu- partial submission November 2013 concerned area
sive economic zone 200 nautical miles off their coast- (about 61,913 km2) northeast of Greenland from.
line. Within this zone, they have the exclusive right
to explore and exploit the natural resources in the
sea, on the seabed and subsoil, and to any economic
opportunities that may arise. The states are also per-
mitted to enforce environmental jurisdiction in their
zone.
BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 9
Existing boundaries
Nationless area
Lomonosov Ridge
Source Nordregio
Alaska
U.S.
Russia
Canada
North Pole
Greenland
Norway
Iceland
Finland
Sweden
Faroe
Islands
Nationless area in the Arctic
10 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
North West Passage
North East Passage
Central Arctic shipping route
North Pole
New Arctic shipping routesBUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 11
NEW ARCTIC SHIPPING ROUTES
Container ships using the Northern Sea Routes The North East Passage is particularly interesting
across the Arctic can cut the length of their journey from a European perspective. A trip from Rotter-
by 40% compared with travelling via the Suez Canal. dam to Yokohama north of Russia is only 8,500 km,
New shipping routes are gradually opening up as the or 12,000 km shorter than through the Suez Canal.
sea ice in the Arctic region retreats. In the past, it The trip from Rotterdam to Vancouver north of Rus-
was only safe for ships to sail along the Northern Sea sia is 12,500 km, or 3,500 km shorter than through
Route in the summer time but in December 2017, the Panama Canal. The North West Passage is open
the first tanker sailed unassisted from South Korea to for shipping roughly every seven summers, but is
the Sabetta liquefied national gas (LNG) terminal in expected to be navigable every second summer from
northern Russia. 2050. The route across the Arctic Ocean is not yet
open for shipping, but navigability is expected to
The volume of Arctic sea ice hit record lows in increase gradually so that by 2050 the area will be
January 2017. This will significantly reduce sailing open during four months of the summer. This could
times between Asia and Europe/America. Since 90 potentially make Iceland a hub for transport between
per cent of international trade is shipped by sea, new West America/Asia and Europe/East America. In
and shorter shipping routes will have an enormous 2017, a new super habour finished construction in
impact on global trade. With the Arctic shipping the capital of Greenland, Nuuk, and new partnerships
routes, the shipping industry will be able to reduce with ports and shipping companies in north America
its exposure to many of the challenges it is faced with are being explored
today. These include bottlenecks in congested wa-
ters around the Suez Canal, the Panama Canal and Extreme Conditions
the Strait of Malacca as well as the safety problems Shipping in the northern regions, however, is not
related to piracy. On the other hand, new challenges without challenges, particularly in relation to the un-
appear in relation to crews and equipment having to predictable weather conditions. Storms, icebergs and
deal with harsh weather conditions and drifting ice- extreme temperatures are just some of the circum-
bergs – even in the summer. stances which both equipment and crews must be
able to handle. Shipping in the area is therefore highly
Three Shipping Routes demanding in terms of safety. One consideration is
The Arctic region basically offers three shipping routes: the vulnerable Arctic environment and another is the
°° The North East Passage north of Russia between fact that an accident in Arctic regions may have fatal
Europe and Asia/West America consequences for the crew since it may take several
°° The North West Passage north of Canada days for help to reach the position. Therefore, cooper-
between East America and Asia/West America ation between countries is of crucial importance.
°° The Central Arctic shipping route across the
North Pole accessing to Europe and East America
from Asia/West America.12 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
THE ARCTIC CIRCLE
AND GREENLAND
The Arctic is currently going through major changes Infrastructure
and is increasingly attracting international atten- Greenland is an example of a frontier Arctic region
tion. Climate changes combined with technological with limited mining infrastructure and challenging
progress present new challenges and opportuni- physical circumstances, yet it has a quite well-devel-
ties for the Arctic and its population. The recent ten oped infrastructure compared to many other Arctic
year period has been the warmest ever recorded in states and regions and is experiencing a significant
the Arctic, and the region is expected to have icefree increase in mining activity.
summers within the next 30 – 40 years. Beyond exist-
ing and prospective petroleum resources, deposits Licenses
in the Arctic of other mineral resources are substan- For instance, the number of mineral related licens-
tial by any standards. Yet, many known reserves of es has increased from 23 in 2002 to 120 in 2017. In
minerals are not exploited because they are found in short, Greenland’s extractive industry is a fine min-
areas to which access is poor or very difficult. ing jurisdiction with favourable geology, a promining
population and a government recognising the mineral
White Ocean resource industry to provide important future income
Looking at the primary mining areas in Greenland, it is and jobs, no minority land rights issues and a govern-
a “White Ocean” of potential. It is not that Greenland ment take that is internationally competitive
has not been mined before. The extractive industry in
Greenland has been a part of the country’s economy Main Projects
since the 1850s, with mining of cryolite, lead, olivine In the following, we go a step deeper and analyse the
and gold. most promising mineral projects in Greenland as well
as the main infrastructure development. Each project
Greenland has a major potential in the known geolog- is described in the same way so it is easy to capture
ic occurrences along the coastline. What is under the the key figures.
Greenland ice sheet is, however, largely unknown.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 13
Valdez
Alaska Chukotka
U.S.
Yukon Russia
Alaska North Slope, Chukchi Sea
Beaufort Sea,
& Arctic National Wildlife Refuge
Mackenzie Delta
and Valley
Canada
Sakha
North West Territories
Nunavut
Taimyr
Krasnoyarsk
Yamalo-
North Greenland
Nenets Urengoi
Oil fields in Pechora
& Yamal Megaproject
Nunavik
(Quebec)
Greenland
Nenets
Shtockman
Western Greenland Barents Sea
Labrador Snøhvit Komi
Norway
Narsaq Iceland
Finland
Faroe Islands Sweden
Primary mining areas
Largest mining areas
Oil and gas production
Potential oil and gas reserves
1a
Mining and oil activities in the Arctic Source Nordregio 2
314 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 15
OPERATING IN GREENLAND
On a global comparison, Greenland presents a stable ly, some structural and infrastructural challenges
political and legislative system with a general low risk are present, but so is the country’s drive towards
business environment on par with other developed solving them – an endeavour based on industrial
Western and Nordic countries. The challenges of a development within minerals, infrastructure and
lightly populated vast country in an Arctic and Sub- housing development, hydropower and green tech-
arctic environment are naturally present, not unlike nology, as well as growth in established industries
conditions found in regions of e.g. Canada, Alaska, (fishing and tourism) and more. And an endeavour
Russia or Norway. As indicated in the GREENLAND that will require local and inbound investments alike
BENCHMARKING REPORT 2016, Greenland gener- and create opportunities for a wide range of compa-
ally scores well on several principal macroeconomic nies.
and business environment performance indicators.
Educational Institutions
Strong Economy Greenlandic students have options for both mid
Greenland has gone from a negative to a positive and higher education in Greenland, but also enjoy
growth in gross domestic product (GPD) in recent full access to the Danish educational system. The
years (+1.7, 2014 to 2015). The economy foundation University of Greenland (Ilisimatusarfik), The Build-
is still highly dependent on the incomes from a single ing schools (KTI) including The Arctic Technology
industry (fishing) and a yearly grant from Denmark. Centre (ARTEK) along with the country’s trade and
There are, however, positive benchmarking factors. services schools generally have good ties with inter-
The general government gross debt is low in Green- national educational institutions and seek collabora-
land and at a GDP around 15,000 M DKK, Greenland tion opportunities with relevant businesses. In 2017,
represents a small economy, but also one well posi- ARTEK inaugurated larger facilities in Sisimiut under
tioned to engage the global lending market. Bench- their “Vision 125”, marking a reinforced focus on
marked against comparable nations, Greenland is engineering in the Arctic region. The Greenland
less indebted by far. In terms of inflation, Greenland School of Minerals and Petroleum and The Greenland
generally scores well with an annual inflation of 0.3 Maritime Centre are examples of another two educa-
per cent (January 2017), which is within the range of tional institutions striving to tailor courses towards
optimal preferred national inflation rates. skills needed in their respective sectors.
On the Move Recognisable Legislation
Perhaps Greenland has unfairly received somewhat Legislatively, Greenland is comparable to the Nordic
negative presumptions in terms of business and in- countries, especially Denmark. Though not a member
vestment climate, but serious companies looking of the EU since 1985, much of the legislative frame-
for new ventures and investment opportunities will work applied to trade has been updated recently
do well to look past any bias when seeking growth (2014 – 2017) to closer match the legislative frame-
and development opportunities in Greenland. Clear- work of Denmark and the EU. The basis is a two court16 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
system with options for appeal on a shared responsi- company. Harbour berth, depth and sea bunker-
bility with the Supreme Court in Denmark. ing options vary, but generally services adhering to
MARPOL standards are available. In total, there are
Communications 16 city ports and 60 smaller settlement harbours in
The 4,600 km fibre optic cable running from New- conjunction with 14 airports, seven heliports and 37
foundland to Iceland has since 2009 connected to helistops.
the capital of Nuuk and the southern city of Qaqor-
toq. Combined with almost 50 radio transmitting Friendly Business Environment
stations on the west coast and satellite connections The majority of large companies in Greenland are
for the eastern and the most northern regions, this either completely or partially state owned. Privately
links Greenland internally and to the rest of the world held small and medium sized companies are predom-
in terms of tele infrastructure. Adding to this, the fibre inant in the business landscape. There are several
cable has through 2017 been extended north to reach options to start or conduct business in Greenland –
the cities of Maniitsoq, Sisimiut and Aasiaat. Further- and even more are expected with amendments to the
more, radio transmission stations have been added Companies Act originally due to be instated January
and signals have been amplified on several locations. 2017, but this date has been pushed back in accord-
Cell phones, Internet and social media are widely ance with the need for other related legislative up-
used and common. Unpopulated areas generally dates. In general, inbound companies can choose
require iridium phones. Currently, there is only one between setting up a subsidiary, a registered branch
supplier of telecommunication/internet in Greenland office, a representative office or a taxable entity.
– the publicly owned TELE Greenland, which plans to
invest a collective sum of 800 M DKK in digital infra- Personal income tax in Greenland is not incremental
structure going towards 2020. related to earnings, but is at a flatrate of either 42
or 44 per cent depending on which of the five
Air and Seabased Transportation municipalities the taxpayer is eligible in. Corporate
Transportation to/from and within Greenland is tax is generally 30 per cent plus a surcharge of six per
either by air or sea. The population is spread around cent, except for license holders within the extractive
the 44,087 km coastline, primarily living on the west industries, where incentives policies offer an effective
coast. Larger cities have paved roads, but no cities tax of 31.8 per cent. Greenland has a limited number
are yet connected by such. Denmark, mainly Copen- of import duties, but no VAT system.
hagen, and Reykjavik, Iceland to some degree, serve
as hubs for international air traffic. Larger cities are Open for Business
reachable by plane; smaller settlements and remote Greenland-based companies typically hold decisive
locations by helicopter. International flights main- local knowhow and the experience to solve a wide
ly connect to Kangerlussuaq (west) and to Narsar- range of tasks – be it auditing or legal consulting
suaq (south). North Atlantic flights via Reykjavik also needs, services and supply, catering, transportation
connect to Kulusuk and Constable point (east), Nuuk or construction. Many international companies have
and Ilulissat (west) and to Narsarsuaq. Goods are local branch offices and numerous local companies
primarily shipped via Denmark (currently Aalborg) have strategic ties and/or affiliations to international
with a few options via Canada and Iceland. Shipping partners, helping even smaller locally centred offices
patterns are however changing with a future, more to punch well above their weight.
globally focused, strategy from the national shippingBUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 17
Greenland at a glance
Official name Kalaallit Nunaat (Greenland)
Capital Nuuk
Institutional system Parliamentary democracy
(self-governing country
within the Kingdom of
Denmark)
Area 2,166,086 km2
Currency Danish Krone (DKK)
Official languages Kalaallisut (Greenlandic),
Danish
Religion Evangelical Lutheran
Ethnic groups Born in Greenland
– 89.7%, born outside –
10.3% (2016)
Population 55,860 (Jan. 2017)
Urban population 48,248 (Jan. 2017)
Source: Statistics Greenland18 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
MINERALS AND HYDROCARBONS
Hydrocarbon focused operations are currently at quantities and included coal, marble, lead, zinc, silver
somewhat of an adjournment. A combination of and cryolite (plus uranium related to research at the
declining crude oil prices and a challenging Arctic Risø Institute). In recent years, olivin and gold have
environment seems to have stifled the offshore inter- been quarried. Notable mining endeavours include:
est. In 2011, the most recent appraisal drilling was Ivittuut/cryolite (1854 – 1987) 3,700,000 (t) ore;
carried out by Capricorn (Cairn Energy) off the west Qullisat/coal (1924 – 1972) 570,000 (t); Mestersvig/
coast, but the company did not strike commercial lead and zinc (1956 – 1963) 545,000 (t); Maarmori-
quantities. Though some stakeholders have farmed lik (Black Angle)/lead, zinc and silver (1973 – 1990)
out or relinquished their off shore licenses, several 11,300,300 (t); Seqi/olivin (2005 – 2009) 1,200,000
major oil and gas companies still retain exploration (t); Nalunaq/ gold (2003 – 2013) 680,000 (t) – 11 (t)
fields in Greenland. Proactive license policies have gold.
been instated by the government and seismic surveys
are still pursued off the coast of northeast Greenland. Mineral licenses
Call for tenders on licenses blocks and “open door” As of 5 February 2018, six (exclusive) licenses are
procedures for certain areas are presented at two to granted for mineral exploitation. Three of these
three years’ intervals going towards 2018. Landbased represent active operations, whereas the other three
searches have seen additional attention with onshore are either subject to further exploration/analysis by
licenses granted in Jameson Land and a recently new stakeholders or put on standby due to feasibil-
prepared Strategic Environmental Impact Assess- ity forecasts and market conditions. Almost 60 (ex-
ment regarding Disko Island and the Nuussuaq clusive) licenses for mineral exploration are granted,
Peninsula. As of February 1 2018, 13 (exclusive) to which could be added numerous nonexclusive and
exploration and exploitation licenses are granted for smallscale license categories. While some are more
hydrocarbons, two of which cover onshore areas. or less dormant, others see serious investments in
However, six of these licenses are currently being exploration as operations move close towards an ap-
surrendered. A similar number is seen for non plication for an exploitation license.
exclusive prospecting hydrocarbon licenses – howev-
er most of these nonexclusives are due to expire. Typically, license holder information is updated twice
a month and a yearly activity report is published by
Mining is not new in Greenland the Ministry of Mineral Resources, but it is advisa-
Although Greenland is not an established mining ble to attend related conferences/seminars and join
nation per se, the country is not unfamiliar with an relevant networks/membership organisations to gain
active mining industry: Coal mining in Greenland information on current and projected activities.
dates back as far as the late 18th century, while
smaller quantities of graphite, copper, gold, silver
and zirconium was mined from the mid to late 19th
century. Mining in the 20th century produced greaterBUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 19
The public administration
Previously and formally known as the Bureau of Detailed information is available
Minerals and Petroleum (BMP), the Greenlandic Online means are available to stakeholders seeking
authority on natural resources (oil, gas and miner- detailed geological and geophysical information and
als) comprises different entities under the Ministry of data on Greenland’s mineral or hydrocarbon resourc-
Mineral Resources (MMR) and shares related es: Greenland Mineral Resources Portal, run jointly
responsibilities with the Ministry of Industry, Labour, between MMR and GEUS and Greenland National
Trade and Energy and the Ministry of Nature and Petroleum Data Repository, respectively. Geological
Environment. One may encounter references to maps, publications and additional data can also be
the BMP in documents or rapports predating 2013, found at the GEUS website.
referring to the former administrative organisation.
Regulation
Representing a small administrative size, bottle- Activities in relation to Greenland’s natural
necks may ensue within periods of peak activity, but resources, both minerals and hydrocarbons, are
the stages towards obtaining an exploratory permit highly regulated. All significant activates must be
or settling on an exploiting agreement reflect well reviewed and approved before any prospecting,
regulated public sector principles known in western exploration or exploitation can be initiated. List of
nations. fees and indepth information is accessible at the
website Govmin.gl, but the typical steps towards an
Strategy 2014 – 2018 operating business include obtaining an exploration
Greenland’s oil and mineral strategy 2014 – 2018 is license, reporting on field activities, reporting on
still in effect at the moment, but is due to be updated. geological findings and financial statements. Exten-
Currently, the Mineral License and Safety Authori- sive and potentially intrusive exploratory activities
ty (MLSA) and the Environment Agency for Mineral may even require an Environmental Impact Assess-
Resources Activities (EAMRA) both support the core ment report (EIA) followed by a public hearing. Some
obligations related to the responsibilities of the MMR. distinctions apply to the processes related to hydro-
Typically, the specific legislative framework under carbons and minerals. The focus will be on mineral
pinning the sector, including strategic and resource related activities in the following paragraph.
marketing related efforts, is formed and revised
through the MMR. There is a vested focus on promot- Social and Environmental Impact Assessments
ing the country’s natural resources to the extractive The process from exploration to exploitation will in-
industry, which includes securing both a reasonable volve both a Scoping Study, a preconsultation, public
ROI for private parties and a fair government take – meetings, an Environmental Impact Assesment (EIA)
simultaneously making sure that regulations on en- and a Social Impact Assessment report (SIA). The re-
vironmental and social impacts follow international ports need to provide a comprehensive outline of the
best practices.20 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
project, opportunities, impacts and mitigating activi- building and knowledge transfer; onsite/incountry
ties. Whilst license holders tend to hire independent processing, energy decisions and infrastructure;
thirdparty consultancy to prepare the reports, the EIA sociocultural values and traditions; as well as intern-
and SIA are considered to be the licensee’s reports. ships, training and education and decommissioning.
Draft reports will be studied and reviewed by the ap-
propriate government authorities followed by a public A signed IBA predates the final political approval of
hearing of at least eight weeks. Following this, the fi- plans for exploitation, development and closure/
nal reports and a White Paper, addressing questions decommissioning. No construction work (related to
brought up through the process, must be prepared exploitation) can be initiated before the final approval.
and made available to the public. General language
requirements entail reporting in Greenlandic, English Small scale mining licenses are only granted to
and Danish. Greenlanders (five years’ permanent/taxable
residents) and are usually limited in terms of scope
Impact Benefit Agreements and investment needs.
Parallel to the White Paper preparations, the
Impact Benefit Agreement (IBA) negotiations will Governing legislation, procedures/standard terms,
commence. The negotiations are conducted as rules for fieldwork/reporting, guidelines for EIA
threeparty negotiations between the license holder/ (2015) and SIA (2016) and more are available at the
private company, the Government of Greenland and Govmin.gl website.
the appropriate ministries and municipality(ies). High
priority items within the IBA negotiations include Signed IBAs are found under publications at the
local content (recruitment of Greenlandic labour and Naalakkersuisut.gl website.
engaging Greenlandic business); longterm capacityBUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 21
Involvement of stakeholders throughout the process
1 2
START
Scoping Study,
collection of baseline
data and draft Pre-consultation
Terms of Reference (35 days)
(project
description)
4 3
Submission
of draft SIA and Terms
application for of
exploitation Reference
license
5 6
Public
Preparation
consultation
of
(minimum
White Paper
eight weeks)
8 7
Impact
Final SIA,
Benefit
White Paper and
Agreement
IBA negotiation
(IBA)
9 10
§ 16
Decision
exploitation license
on political
§ 19, 43 and 86
approval
approvals
END
The formal SIA process
The Social Impact Assessment process-path towards final approval22 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
MINING Alba Mineral Resources
PROJECTS
Inglefield Land Thule Melville Bay
Copper, gold, cobalt Heavy mineral sands Iron ore
and nickel (ilmenite) Status: Assessment
Existing and potential Status: Exploration
of a recently granted
Status: Exploration of
two recently granted
of previously drilled
project benefiting
mining projects in licence area licence areas covering
a coastline prospec-
from a JORC
resource
Greenland tive for heavy mineral
sands, containing
deposits of ilmenite
Dundas Titanium
Dundas
Ilmenite
Exploration related employment:
Approx. 40
Status: SIA and EIA expected to be
FBC Mining completed early 2018. Construction
of plant and infrastructure planned to
Maarmorilik commence in 2018
Zinc and lead mine
Operated by Greenex (1973 – 90)
Former employment: Approx. 350
Status: Further exploration at formerly
operating mine site
North American Nickel
Maniitsoq
Nickel, copper, cobalt and PGE
Exploration related employment:
Approx. 40
Status: Highly active yearly exploration
campaigns since 2011
Greenland Ruby
Aappaluttoq
Ruby and pink sapphire
Greenland Minerals and Energy Expected employment: Approx. 50
Exploration expenditure: Not disclosed
Kvanefjeld by Greenland Ruby at this time
Rare Earth Elements (REE), uranium Capital cost: Ibid.
and zinc Total operating cost: Ibid.
Expected employment: Status: Initial operation commenced
Construction: Approx. 2,000 May 2017
Operation: Approx. 800
Exploration expenditure:
Approx. 75 M USD
Capital cost: Approx. 832 M USD
Status: Pre-hearing has been approved.
Process is ongoing.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 23
Ironbark Zinc
Citronen Fjord Hudson Resources
Zinc and lead
Expected employment:
Naajat/White Mountain Mine
Construction: Approx. 300 Anorthosite
Operation: Approx. 470 Expected employment:
Exploration expenditure: Approx. 50 M Construction: Approx. 20
USD Operation: Approx. 60
Capital cost: Approx. 429.3 M USD Exploration expenditure: Approx. 30
Total operating cost: Approx. 3.43 B USD M USD
Status: Construction expected 2019 Capital cost: Approx. 34 M USD
Status: Construction commenced 2016
with production expected in the second
half of 2018
General Nice Development
Exploitation license previously held by
London Mining Greenland (LMG)
ISUA
Iron
Expected employment:
Construction: Approx. 3.300
(Based on LMG data 2010 – 12)
Operation: Approx. 850 (Ibid)
Capital cost: Approx. 2.35 B USD (Ibid)
Operating cost: 46 USD/(t) at 15 Mtpa
(Ibid)
Status: Project on standby
Alba Mineral Resources
Amitsoq
Former high-grade graphite mine
TANBREEZ Mining Greenland Status: Ongoing exploration at formerly
Kringlerne operating mine site and new Kalaaq
discovery
Tantalum, Niobium, Rare Earth
Elements (REE) and Zirconium
Expected employment:
Construction: Approx. 140 Alopex Gold
Operation: Approx. 80-350 Exploitation license previously held
Exploration expenditure: by Angle Mining
Approx. 45 M USD Nalunaq
Status: Applied for exploitation licence Goldmine
March 2012.
Operated by Crew Gold Corporation
Negotiations are still ongoing
(2004-08) and by Arctic Mining
(2010-13)
Former employment: Approx. 60
Status: 2017 Summer programme
successfully delivered on the targets24 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
Greenland Ruby
Aappaluttoq
Ruby and pink sapphire
Expected employment: Approx. 50
Exploration expenditure: Not disclosed
by Greenland Ruby at this time
Capital cost: Ibid.
Total operating cost: Ibid.
Status: Initial operation commenced
May 2017
Aappaluttoq is Greenland’s first gem corundum mine. Gemstones as a commodity are set apart, even from
The minesite and state-of-the-art processing facilities the precious metals entering the jewellery industry.
are built and run by LNS Greenland A/S (LNSG) while The business model and marketability depend on
Greenland Ruby A/S hold the license and administer stone qualities, characters, carats and cutting/
marketing and sales. Together with the Greenlandic polishing, more than pure yield. Tracking and
venture capital company Greenland Venture and documentation of Greenlandic origin is planned in
The Bank of Greenland, LNSG and Greenland Bank order to brand for market penetration and attest
secured the necessary financing in order to finalize gems as ethically mined. Ruby and gemstone prices
the infrastructure at the mine and subsequently and sales are trending upwards, with India and China
enable ruby and sapphire production. emerging as markets equivalent to U.S. market.
Greenland Ruby gems are mined by adhering to strict ¶¶ Services required/business opportunities:
ethical, social, human rights, and environmental laws °° Transport of goods and staff
and responsible practices. After mining, the company °° Services to the camp
transports the gems to Greenland Ruby’s advanced °° Provision of fuel
sorting facility, where they are cleaned and sorted. °° Provision of goods and food
°° Provision of technical services etc.
Gems can be tracked along every step of their jour-
ney, from mine to sort house; to preferred partners’ ¶¶ Staff /jobs:
workshops for treatment, cutting, and polishing; and °° Approx.50 at the mine and in Nuuk
then on to jewelry designers, manufacturers, brands, °° The
Aappaluttoq mine is expected to operate
retailers and end consumers. year round.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 25 Company: LNS Greenland A/S (LNSG ) is a Greenlandic contracting company who operating the mine and processing facilities at the Aappaluttoq Mine. Greenland Ruby A/S (GR) is a newly founded gemstone mining company who carry the license. The sister companies LNSG and GR are group companies under the Danish registered Greenland Ruby DK ApS (GRDK). GRDK is owed by Rana Gruber AS in Norway with more than 90 % ownership and Greenland Venture A/S in Greenland Website: www.greenlandruby.gl Chairman of the Board in LNSG, GR & GRDK: Mr. Gunnar Moe Managing Director GRDK: Mr. Magnus Kibsgaard Managing Directors LNSG & GR Greenland: Mr. Peter Chr. Madsen / Mr. Finn K. Mortensen LNSG & GR office: Nuuk, Greenland Exploitation licence: ‘2014/21’ – 2044. Granted 10 March 2014 / Approval 23 Sep- tember 2014. Transferred from True North Gems Greenland to LNSG 3 October 2016 Site: 17 km2 – Aappaluttoq – SW Greenland – Municipality: Sermersooq Deposit & mine: Corundum (ruby/pink sapphire) – Small open pit (approx. 150 m x 200 m) Resource: Not disclosed by Greenland Ruby at this time Current estimated operation: 2015 – 2035 (incl. construction – expansion possible) Estimated exploration expenditure: Not disclosed by Greenland Ruby at this time Estimated total capital cost: Ibid. Estimated total operating cost: Ibid. Total estimated sales revenue: Ibid. Other properties: 2008/01 (80 km2); 2008/01 (38 km2); 2016/18 (N/A) Status: Operation commenced May 2017. Shipment planned for the second half of 2018
26 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
Hudson Greenland
Naajat/White Mountain Mine
Anorthosite
Expected employment:
Construction: Approx. 20
Operation: Approx. 60
Exploration expenditure: Approx. 30
M USD
Capital cost: Approx. 34 M USD
Status: Construction commenced 2016
with production expected in the second
half of 2018
Hudson Resources has maintained interests in um (16 per cent max). The deposit will support mine
Greenland since 2002, exploring for diamonds, rare life in excess of 100 years and the business model
earths and, more recently, industrial minerals in the rests upon three potential revenue streams from one
form of anorthosite (calcium feldspar). The project operation. Demand is upward trending with Asia
is a simple mining operation similar to a rock quar- (China), the US and the EU representing primary mar-
ry, with primary processing/grinding onsite to pro- kets. Global production (2012) estimated at 10.8 B
duce feed product for use in making structural fiber- USD.
glass. Finer milling off site has the potential to create
higher value products for the industrial minerals ¶¶ Services required/business opportunities:
sector for paints and coatings. Hudson has signed a °° Transport of goods and staff
tenyear supply agreement with market leading fiber- °° Services and construction to the camp and
glass producer Owens Corning. Hudson has financed facilities
construction through a combination of debt and °° Provision of fuel
equity. °° Provision of goods and food
°° Provision of technical services etc.
Three main industrial applications for the Naajat
anorthosite have been identified by Hudson: Feed- ¶¶ Staff /jobs:
stock to the highend fiberglass (E-glass) industry; new °° Approx. 20 for construction and 60 once
source of alumina to supply aluminium smelters; and operational.
new source of filler material (component in the plas- °° Mining season expected to be nine months/
tics and paints industries). The anorthosite at Naajat year, processing plant ten months/year.
is rated very high for industrial use, containing a high
content of aluminium (33 per cent max) and calci-BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 27 Company: Hudson Greenland A/S is the operating subsidiary of Hudson Resources Inc., a junior exploration and mining company focused on anorthosite (calcium feld- spar) and Rare Earth Elements (REE). Shares trade on the TSX Venture Exchange [HUD] Website: www.hudsonresources.ca Board Chairman: John Hick President, Director: James Tuer Hudson Resources office: Vancouver, BC, Canada Exploitation licence: ‘2015/39’ – 2045. Granted 11 September 2015 / Approval 24 September 2015 Site: 92 km2 – Naajat (White Mountain) – W Greenland – Municipality: Qeqqata De- posit & mine: Anorthosite (calcium feldspar) – Small open pit (approx. 300 m x 400 m) Resource: 60 M (t) Current estimated operation: 2015 – 2035 (incl. construction – expansion possible) Estimated exploration expenditure: 30 M USD. Estimated total capital cost: 34 M USD Estimated total operating cost: Confidential. Total estimated sales revenue: Confidential Estimated exploration expenditure: 30 million USD Estimated total capital cost: 25 million USD Estimated total operating cost: Confidential Total estimated sales revenue: Confidential Other properties: 2010/40 (92km2) (Sarfartoq/REE); 2013/01 (146km2); 2012/38 (N/A) Status: Construction commenced (September 2016). Operation and shipment planned for the second half of 2018
28 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
Ironbark Zinc
Citronen Fjord
Zinc and lead
Expected employment:
Construction: Approx. 300
Operation: Approx. 470
Exploration expenditure: Approx. 50 M
USD
Capital cost: Approx. 429.3 M USD
Total operating cost: Approx. 3.43 B USD
Status: Construction expected 2019
The remotely situated Citronen area presents one of ¶¶ Services required/business opportunities:
the world’s largest undeveloped zinclead deposits. °° Transport of goods and staff
Ironbark is proposing to develop three mining °° Services and construction to the camp and
deposits within the area, with an onsite facility for facilities
crushing, grinding and flotation processing to pro- °° Provision of fuel
duce mineral concentrates of zinc and lead. Concen- °° Provision of goods and food
trates will be shipped offsite to Iceland or another °° Provision of technical services etc.
northern European port and subsequently to a third-
party smelter for refining. Glencore and Nyrstar are ¶¶ Staff /jobs:
project shareholders and have committed to 70 per °° Approx.
300 for construction and up to 470
cent offtake agreements. MOU has been signed with once operational.
China Nonferrous regarding lump sum construction
and commissioning, with 70 per cent associated debt ¶¶ Mining season:
funding and 20 per cent direct project investment. °° All year round
°° Shipping window to area approx. mid-July to
Zinc stock levels are declining with major producers mid-September.
closing mines. Demand is forecasted to rise towards
2025, and price is projected an upward trend scenario,
with both global markets and demand from China.
Lead and zinc concentrates are traded on the global
market permitting annual negotiations bench
marking pricing amongst smelter, miners and metal
markets. Zinc is the fourth most used metal globally.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 29 Company: Ironbark Zinc Ltd. is a junior resource company focused on development of major base metal mining projects (lead and zinc) in Greenland and Australia. Shares trade on the ASX Exchange [IBG] Website: www.ironbark.gl Board Chairman: Peter Bennetto Managing Director: Jonathan C. Downes Ironbark Zinc office: Subiaco (Perth), WA, Australia Exploration licence: ‘2007/02’ – 2016 via Bedford (No 3) Ltd. (Owned 100 per cent by Ironbark) Site: 120 km2 – Tarsarneq (Citronen) – N Greenland – Municipality: N/A Deposit & mine: Zinc; lead – Underground & Open pit Resource: 70.8 M (t) at 5.7 per cent Zn+Pb Current estimated operation: 2017 – 2033 (incl. construction – expansion possible) Estimated exploration expenditure: 50 M USD Estimated total capital cost: 504 M USD Estimated total operating cost: 3.42 B USD Total estimated sales revenue: 5.56 B USD Other properties: 2007/31 (130 km2); 2007/32 (122 km2); 2007/33 (69 km2); 2010/47 (94 km2); 2011/28 (5 km2); ‘2011/33 (155 km2)’; 2016/22 (114 km2) Status: Exploitation Licence Approved. Construction and Mining expected to commence 2019
30 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
TANBREEZ Mining Greenland
Kringlerne
Tantalum, Niobium, Rare Earth Ele-
ments (REE) and Zirconium
Expected employment:
Construction: Approx. 140
Operation: Approx. 80-350
Exploration expenditure: Approx. 45
M USD
Status: Applied for exploitation licence
March 2012.
Negotiations are still ongoing
The project represents a significant multielement at overcoming perceived monopolies in commodities
deposit including perhaps the largest REE and tan- like tantalum, rare earths, yttrium and even niobium,
talum deposit in the world. Tanbreez is proposing to the demand for REE is expected to surpass current
separate the ore into three saleable components pri- supply. Prices have settled since the 2010/11 bubble
or to shipping. These are eudialyte (the source of the and are trending up.
Ta, Nb, REE and Zr), arfvedsonite and feldspar. The
company is hoping to be able to sell 97 per cent of ¶¶ Services required/ business opportunities
everything mined, potentially making this mine °° Transport of goods and staff
unique. Due to high costs in Greenland, further °° Technical services
downstream processing of the eudialyte will not be °° Construction and operating camp
possible. At present, the company is awaiting a and facilities
pending agreement on the exploitation license before °° Provision of fuel/food and other goods
it can finalise offtakes, financing arrangements and °° Recruitment
service contracts. °° Educational services
Tantalum is very stable and used in alloys due to ¶¶ Staff/jobs for stage 1:
its resistance to corrosion, as well as in capacitors °° Approx. 140 in construction and 80
in electronic equipment. Niobium shares many when operational, rising to 250 in stage
properties and application purposes with Tantalum. 3 in a 3 M t/year option
Zirconium is a light metal resistant to corrosion and °° A further 50 – 100 may be needed for
is also used in alloys, advanced ceramics and in the downstream processing of other products
space industry. Tanbreez has spent considerable and administration of offshore processing
funds on research into downstream processing aimed facilities, marketing etc.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 31 Company: Tanbreez Mining Greenland A/S is a junior resource company wholly owned by Rimbal Pty Ltd, which is an Australian company owned by the Barnes Family Trust. The company is focused on a multi element deposit of Tantalum, Niobium, Rare Earth Elements (REE) and Zirconium in Greenland. Shares are not publicly traded Website: www.tanbreez.com Owner, Chief Geologist: Greg Barnes Tanbreez Mining Greenland office: S Perth, WA, Australia & Nuuk, Greenland Exploration licence: 2006/04 Site: 18 km2 – Killavaat Alannguat (Kringlerne) – S Greenland – Municipality: Kujalleq Deposit & mine: Tantalum, Niobium, REE & Zirconium – Open pit Resource: 4.8 B (t) Current estimated operation: Ten years (expansion possible) Estimated exploration expenditure: 45 M USD Estimated total capital cost: Not disclosed Estimated total operating cost: Not disclosed Total estimated sales revenue: Not disclosed Other properties: 2010/24 (44 km2); 2007/45 (50 km2) (Ivittuut) – both via Rimbal Pty Ltd. Status: Applied for exploitation licence March 2012. SIA and EIA hearings completed late 2013. Negotiations on the application for a 0.5 M t/year operation are currently ongoing (Oct. 2016). Long term plans of extension to 1.5 M t/year and 3.0 M t/year have as yet not been applied for
32 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
Greenland Minerals and Energy
Kvanefjeld
Rare Earth Elements (REE), uranium
and zinc
Expected employment:
Construction: Approx. 2,000
Operation: Approx. 800
Exploration expenditure:
Approx. 75 M USD
Capital cost: Approx. 832 M USD
Status: Pre-hearing has been approved.
Process is ongoing.
The project represents a significant multi element The matter is subject to further political discussions
deposit including perhaps the second largest REE following any application for uranium exploitation,
deposit in the world, as well as significant uranium such as GME’s. Looking ahead, the uranium market
and zinc deposits. Build-Own-Operate discussions is expected to grow significantly. China has a heavy
for third party infrastructure financing are current- dominance on the current production and stock piling
ly ongoing with the government of Greenland and a of REE, why the US, the EU and others may look for
major European multinational conglomerate special- alternative suppliers for a strategic pipeline stream.
ises in power provision. As of 23 September 2016, REE are finding increased uses within greentechs and
Chinese Shenghe Resources Holding Ltd., has agreed, consumer products. The demand for REE is expected
through 99.99 per cent owned subsidiary Le Shan to surpass current supply. Prices have settled since
Shenghe Rare Earth Co Ltd., to subscribe for 125 M. the 2010/11 bubble and are trending up.
ordinary shares in GME to take a 12.5 per cent hold-
ing, pending approval prior to 30 November 2016. ¶¶ Services required/business opportunities:
°° Transport of goods and staff
The issue of uranium mining, Greenland’s previous °° Services and construction to the camp
zerotolerance policy and the geopolitical aspects of and facilities
the resource involving the Danish government have °° Provision of fuel
been and are significant aspects when addressing this °° Provision of goods and food
resource. Legislative agreements between Greenland °° Provision of technical services etc.
and Denmark have been passed allowing Greenland
to export uranium under international safeguard ¶¶ Staff /jobs:
protocols. Greenland has signed a parliament bill °° Up
to 2,000 jobs during construction
on the safeguard of nuclear materials and export of and up to 800 once operational
uranium.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 33 Company: Greenland Minerals and Energy Ltd. (GGG) is a junior resource company, focused on Rare Earth Elements (REE), uranium and zinc in Greenland. Shares trade on the ASX Exchange [GGG]. Greenland Minerals and Energy A/S (GME) is the Greenlan- dic subsidiary of GGG Website: www.ggg.gl and www.gme.gl Director, Board Chairman: Anthony Ho Managing Director: John Mair Greenland Minerals and Energy Ltd. office: Subiaco (Perth), WA, Australia Greenland Minerals and Energy A/S office: Narsaq, Greenland Exploration licence: 2010/02 Site: 80 km2 – Ilímaussaq (Kvanefjeld) – S Greenland – Municipality: Kujalleq Deposit & mine: REE, uranium, zinc – Open pit Resource: 1 B (t) Current estimated operation: 2017 – 2056 (incl. construction etc. – expansion possible) Estimated exploration expenditure: 75 M USD (2012) Estimated total capital cost: 832 M USD Estimated total operating cost: Not disclosed Total estimated sales revenue: Not disclosed Other properties: N/A Status: Pre-hearing has been approved. Process is ongoing
34 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018
General Nice Development
ISUA
Iron
Expected employment:
Construction: Approx. 3.300
(Based on LMG data 2010 – 12)
Operation: Approx. 850 (Ibid)
Capital cost: Approx. 2.35 B USD (Ibid)
Operating cost: 46 USD/(t) at 15 Mtpa
(Ibid)
Status: Project on standby
The project representing a major, largescale, iron ore ¶¶ Services required/business opportunities:
endeavour is currently on standby. Mining, process- °° Transport of goods and staff
ing to slurry and pipeline to port facility was planned °° Services and construction to the camp and
in 2012, when London Mining Greenland applied for facilities
exploitation rights. Since the dismantlement of its °° Provision of fuel
mother company (London Mining) and overtake from °° Provision of goods and food
General Nice Development, the feasibility prospect °° Provision of technical services etc.
has not supported commercial value of production
under current iron ore market prices. ¶¶ Staff /jobs:
°° Up
to 3,300 jobs during construction
With current iron pricing, the project should be and up to 850 once operational
viewed as a longterm strategic investment from the
General Nice Group. Iron ore has been in a case of
oversupply and cost production lowering, but a rise in
demand may also be in the horizon. Representing a
serious investment, General Nice Group and investors
will be on the lookout for solid upwards movements
to solidify in iron ore prices before initiating opera-
tion expenditure at Isukasia. China still represents a
major market for iron import and will likely look to
secure sourcing for needed commodities including
those for steel making.BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 35 Company: General Nice Development Ltd. is part of the General Nice Group which en- gages in three main businesses: mineral resource investment, minerals trading and real estate investment. Shares of group subsidiaries trade on related exchange venue Website: www.generalnice.com Founder, Chairman: Cai Sui Xin. CEO, Executive Director: Yu Lau General Nice Development Ltd. office: Sheung Wan, Hong Kong, China Exploitation licence: 2013/31 – 2042 Granted 24 October 2013 (London Mining Greenland) Site: 290 km2 – Isukasia – W Greenland – Municipality: Sermersooq Deposit & mine: Iron – Open pit Resource: 1,1 B (t) Current estimated operation: 15 – 20 years (incl. construction – expansion possible) Estimated total capital cost: 2.35 B USD Estimated total operating cost: 46 USD/(t) at 15 Mtpa (resource and fiscal information: based on LMG data 2010 – 12) Status: Project on standby. Exploitation licenses granted to previous licensee; London Mining Greenland A/S, now owned by General Nice Development. Indirect transfer of license approved by the Government of Greenland, late 2014. IBA and final approval to be concluded Estimated total capital cost: 2.35 billion USD Estimated total operating cost: 46 USD/(t) at 15 Mtpa (resource and fiscal information: based on LMG data 2010 – 12) Other properties: N/A Status: Project on standby. Exploitation licenses granted to previous licensee; London Mining Greenland A/S, now owned by General Nice Development. Indirect transfer of license approved by the Government of Greenland, late 2014. IBA and final approval to be concluded
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