Escolar Documentos
Profissional Documentos
Cultura Documentos
GREENLAND
Content
Mineral memos ..................................................................... 6
On With Your Helmets! The Mines Are Coming.................. 9
First Ruby Mine in the Arctic ............................................... 10
Politician Demands Ruby Apology ....................................... 12
True North Tired of Ruby Myth ............................................ 13
Hudson to Export Anorthosite ............................................. 16
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GREENLAND
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50
www.SuliSitSiSut.gl
Oil Adventure
The dream of an economically independent Greenland is unlikely to come true on the basis of black gold drawn from the
ocean floor.
In many cases, all the expenses involved in drilling, dodging
icebergs and finally transporting the crude oil to a major port,
dwarf corresponding costs elsewhere in the world.
This was the conclusion of a new type of analysis conducted
by the U.S. Geological Survey (USGS) in cooperation with the
Geological Survey of Denmark and Greenland (GEUS) way back
in 2010.
The USGS focused on the deposits in North East Greenland,
reckoning in all the expenses involved in recovering crude oil
and getting it out to the rest of the world. This life cycle was
also paired with the probability of actually discovering any, and
how different prices for a barrel of oil affect the cost ratio.
Even with a large commercial discovery, you will be lucky
if you are able to earn money in North East Greenland, said
Donald Gauthier, who is a geologist with the USGS, specialising
in the Arctic.
Meanwhile, three years earlier, the USGS had estimated that
the waters off North East Greenland concealed an abundance
of undiscovered deposits of oil and gas: about 31 billion barrels. At that time, in terms of value this amounted to about
DKK 10,000 billion. Consequently, the USGS placed North East
Greenland on a Top-20 list out of the 500 most important oil
regions in the world. Greenland is also a real treat for oil companies, because of the stable conditions of our neighbours in
terms of politics and legislation.
Despite the favourable conditions, long-term prospects for oil
exploration in Greenland have become even more distant. The
European reference oil, Brent has fallen and is down to a price
last seen in 2004. The price drop is due to on-going high global
production and the prospect of even more oil on the market
4
airgreenland.com
80 at anti-uranium demonstration
Politicians and environmental activists in Copenhagen held a demonstration against uranium
mining. The Greenland MP Aaja Chemnitz Larsen (IA) and other speakers tried to breathe life into
the constantly red hot resistance to uranium in the Danish Realm from the likes of environmental
enthusiasts. Greenland needs success stories in the mining industry to attract more investors and
new projects, stated the Inuit Ataqatigiit MP.
But, more importantly, we as politicians and as citizens have a responsibility not to think shortterm and not to let short-term economic interests come before the interests of humanity, or let financial interests and the
desire for jobs come before our health, our current commerce and traditions, or before our beautiful nature. About 80
protesters attended the demonstration, which started at Regnbuepladsen and proceeded to Nytorv. In addition to Aaja
Chemnitz Larsen, the newly elected MP for the Alternative Party, Rasmus Nordqvist was present. He expressed his support
for uranium sceptics in Greenland.
Beware the mineral resources comfort blanket! The authors of the report fear that Greenland is not
currently preparing sufficiently for the mining industry of the future. Then society will miss out on the
benefits, and the gap between rich and poor will further increase.
of skills.
The authors do not hide the fact that
they fear this scenario. The tendency
to bide time, which is expressed in large
parts of Greenland, is a symptom of
this, they write.
Loads of new jobs
The alternative is to address the future
now. If Greenland prepares thoroughly,
the mines can create growth that will
benefit society. Each job in the actual
operation of a mine leads to three or
four jobs in other sectors. The report
mentions health workers, kindergarten
teachers, teachers, accountants, traders,
the food industry, restaurants, tourism
and culture.
It will be too late to address all this,
when the mining companies arrive. Now
is the time for Greenlanders to put their
helmets on.
FIRST RUBY
Mine in
the Arctic
10
POUL KRARUP
CEO Bent Olsvig Jensen(in the middle): All 79 of the workers we have employed in
the first year for construction work come from Greenland. We have also used at least
72 subcontractors from Greenland in the construction phase.
POUL KRARUP
POUL KRARUP
Three politicians from the Construction Committee in Inatsisartut and the committee
secretary have been informed about the ruby mining project in Aappaluttoq. They
are the committees deputy chairman, Kalistat Lund (IA), who is also a member of the
Mineral Resources Committee and on the picture Jens-Erik Kirkegaard (Siumut), who
is also Chair of the Mineral Resources Committee, and Justus Hansen (Democrat).
Oil & Minerals #15
POUL KRARUP
POUL KRARUP
Ane Eva Lange is an engineering student and intern at the mining project. She comes
from Ilulissat and is studying geology, mineral resources and construction engineering
at the Centre for Arctic Technology at the Technical University of Denmark (Artek).
POUL KRARUP
Sren Hansen from Qaqortoq is working as a plumber for the construction work.
FACT
The first ruby deposit was found on
Ruby Island in 1966 by GEUS. True
North Gems started exploration in
2004. The exploitation licence for
the Aappaluttoq deposit was signed
in March 2014. The first production
is expected to commence in winter
2015-16 with a production of two
barrels of concentrate per week. After two years, this is expected to rise
to two barrels a day.
The mine is expected to employ 80
workers during operation (of which
75%
POUL KRARUP
Knud Peter Thomsen is a carpenter and comes from Maniitsoq. He informs us that he
works for three weeks on construction and then has one week off.
Oil & Minerals #15
11
LEIFF JOSEFSEN
Member of the parliament Justus Hansen is still waiting for an apology from the party Naleraq.
APOLOGY
Ruby Myth
POUL KRARUP
Mining Companys
BIG DREAM
of New Field Results
The Canadian company, North
American Nickel are planning to
expand their drilling programme in
the already huge area at Maniitsoq,
where the company have a licence.
MINERAL RESOURCES
North American Nickel have a licence for
a 15-kilometre x 75-kilometre area at
Maniitsoq in West Greenland.
It is the largest exploration area in
the country, but it is not enough, claims
Mark Fedikow, Chairman of the board.
In 2016 the company will apply for an
expansion of the licence area.
We are constantly amazed at the
amount of nickel deposits we see at
Maniitsoq,
even though we were clear from
the very beginning that the area had
14
Great potential
It is not only North American Nickel
who see great potential in the project
at Maniitsoq. The Head of the Geology
Department of the Mineral Licence and
Safety Authority(MLS), Julie Hollis is also
hopeful.
It is noteworthy that in their field
season they have been successful both
in their existing drilling areas and in their
new drilling areas. It gives them something to work on.
It is extremely positive that they are
choosing to continue explorations next
year, particularly in the light of the fact
that many exploration projects find it
hard to raise funding, she says.
Julie Hollis also points out that there
are several factors about the Maniitsoq
project that indicate that it will not take
long before they establish a regular mine.
Oil & Minerals #15
Their big challenge is to find the highest number of mineral deposits in their
large exploration area to create fertile
ground for a mine. But I believe that
there is potential in the area. I believe the
chances of finding large enough deposits
to start production are good. It is also
an advantage that the area is relatively
densely populated in terms of infrastructure, shipping facilities and manpower,
she says.
The prospect of a new mining project
in Greenland also pleases the Greenland
Business Association.
Extremely important
It is extremely important to prove that it
is possible to operate financially profitable mining in Greenland. Now we have
the True North Gems ruby mine, which
will soon start operations, the Hudson
Oil & Minerals #15
FACT
North American Nickel have been
exploring the area around Maniitsoq
since 2011 in the hope of finding
large nickel deposits that can provide
the basis for conventional mining.
Many people consider the project
to be one of the most interesting
mining projects in Greenland, partly
because it has two very strong capital
funds (The Sentient Group and VMS
Ventures) as sources of funding.
Jim Carbon, Head of Development and Vice President of Hudson Resources, taking a selfie together with Mayor Hermann Berthelsen and the students at
the Greenland School of Minerals and Petroleum, for the signing of the IBA agreement on 24 September.
LATE 2016
The company will now try to find
contractors to build the project and
a shipping company to transport
the mineral
Many sub-contractors
Nor have they decided which firms will
perform the construction work. The company have already built a temporary road
and a temporary quay for the removal
of the many samples, which are sent to
potential customers around the world
and for transport of construction materials etc. The contracting company, RTS,
which is based in the Faroe Islands, but is
registered in Greenland, has carried out
this work.
RTS have tackled a number of projects
for Hudson for about five years. The work
they are doing at the moment is building
Oil & Minerals #15
By Poul Krarup
krarup@sermitsiaq.gl
FACT
The company expect to mine
285,000 tons of ore per year, and to
transport 200,000 tons of material to
North America, Europe and Asia. The
material will be sailed away in bulk
carriers with a capacity of 25,000
tons. Production is expected to result
in 85,000 tons of waste.
The project is expected to yield
between DKK 165.4 million and
DKK 197.7 million in tax revenue for
Greenland during the first 20 years
production. The largest part will be
income taxes. The company will pay
an annual royalty of 2.5%, regardless of how much Hudson Greenland
earn.
The company expects to spend DKK
31.4 million in Greenland per year,
DKK 12.5 million of which will be
direct costs for staff. The remaining DKK 18.9 million will be spent
on purchasing goods and services
in Greenland. Mining operations
will cost a total of DKK 186 million,
which will be spent on facilities in
Europe
and Greenland. The mine and facilities in Greenland are expected to cost
a total of DKK 96 million. This is
stated in the IBA agreement.
The map shows the location of the Hudson project between Sisimiut and Kangerlussuaq.
Oil & Minerals #15
17
entertainment
From murderous environmentalists to corrupt drillers. The subsoil
is rich in material for thrillers and
geopolitical page-turners
The Arctic has become a hot subject, In
recent years, the Danish and international media have
had their eyes opened to the riches of
Greenlands subsoil and the possible oil
deposits. Now writers are in hot pursuit.
The latest addition to the trend is a
thriller by the doctor and successful
Danish author Steffen Jacobsen with the
book
A mountain of lies. Reviewers have
praised the release to the skies.
The plot begins at a field station in
western Greenland, where Peter Holm chief geologist in Nobel Oil - recently has
analyzed the last drilling for what looks
to be the worlds greatest oil adventure.
Everyone is excited - the Danish Government, the Greenland Home Rule, and
not least the Chinese Development Bank,
18
By Mads Nyvold
nyvold@sermitsiaq.gl
Oil & Minerals #15
headhouse
ONE-STOP-SHOPPING
EssEntial suppliEs to you all ovEr thE
info@arcticimport.dk
Oil & Minerals #15
www.arcticimport.dk
19
20
SPON
OQ
SO R
es
Arc
tic
Wi
nter
am
ears
More than 45 y
nce
of local experie
N AN
21
OIL HUNT
on
STANDBY
The sharp decline in oil prices
may represent a chance for the
Arctic marine environment.
Now everyone has gained extra
time to consider how to avoid
an ecological disaster
It looks like a script for a horror movie,
but it could become a reality.
The day an oil disaster occurs in the
Arctic region, it will be fatal for humans
and animals, and hunters and fishermen.
In reality, we have no effective ways
to extract oil today, either mechanically
or otherwise. And the long-term effects
of pollution are incalculable. If we look at
the Exxon Valdez disaster in the Gulf of
Alaska [where the super tanker leaked 42
million gallons of crude oil,
Ed.], today, 25 years later, there are still
problems with nature and the environment, said the Head of Research for the
Institute of Bioscience (Arctic Environment) at the security conference, Matchpoint 2015 at Aarhus University.
He was asked of there was absolutely
nothing that could be done?
I dont want to be totally negative.
But, unlike European waters, where we
have some options and can send lots
of ships in, it is very hard in the Arctic.
You can reduce the damaging effects,
22
By Andreas Lindqvist
andreas@ag.gl
23
The Ironbark Zinc mine will be located 100 kilometres southeast of the worlds northernmost mainland point, Cape Morris Jessup on the Peary Land
peninsula near the small Citronen Fjord. From here the lead and zinc concentrate will be sailed out three times a year in the open water period between
July and September.
FACT
The Australian mining company,
Ironbark, are behind the project.
The company are seeking permission to mine 3.3 million tons of zinc
and lead per year in Citronen Fjord
in the Northeast Greenland National
Park.
The nearest settlement is Qaanaaq
in Northwest Greenland, almost
1,000 kilometres away.
The construction phase will take
two years and require an investment of DKK 3.3 billion.
During the mines lifetime, which
is calculated to last no less than 14
years, operating costs will be approximately DKK 24 billion. During
the construction phase, Ironbark expect to employ about 300 full-time
staff: 60 from Greenland.
During the operational period the
number of employees will rise to
470 over the first ten years, during
which Ironbark will endeavour to
employ 90% local manpower. In the
final years of the mines lifetime,
the company expect to employ 290
staff.
If one were to translate the project into Danish terms, it would be
equivalent to an investment of DKK
300 billion.
24
GREENLAND
The prospect of a mining project
worth more than DKK 27 billion is
getting both Naalakkersuisut and
the Greenland Business Association
excited
Perfect opportunity
It is a perfect opportunity for politicians
to take action and allocate the necessary
resources to get the case processed as
quickly and as transparently as possible
and show the outside world that they
want this. Our economy needs projects
like this to succeed, he says, referring to
the diminished Treasury.
He also makes a direct suggestion to
the countrys politicians, who have just
assembled for the autumn parliamentary
session.
The political task is crystal clear from
this point on. They must speed up social
and labour market reforms to ensure that
we can supply the necessary manpower,
so that as a country we get the most out
of the projects, he says, highlighting
education and an increased incentive
Oil & Minerals #15
LEIFF JOSEFSEN
Brian Buus Pedersen, CEO of the Greenland Business Association: It is a huge, huge project. I cant
think of another project in Greenland, where people would spend more than DKK 3 billion in the
construction stage alone.
25
Ironbark Zinc
Not
Will
Pay Royalty
The large-scale zinc project in the
far north of Greenland cites the
original 2007 exploration agreement, which only obliges the company to pay corporation tax in the
operational phase
The stage is set for tough negotiations
on how Greenland will earn revenue
from a potential large-scale zinc project,
now that it is clear that the company
involved maintain they will only pay
corporation tax.
Ironbark Zinc signed their exploration
agreement in 2007, long before an indignant IT project manager by the name of
Jens Erik Kirkegaard managed to get the
royalty payment rate a high position on
the agenda, before Aleqa Hammond got
him voted into parliament and allowed
him to legalise this form of taxation. That
is why there is good reason that not a
word about royalty appears in Ironbark
Zincs contract, which is still valid. Judging by the published consultation material, the company intend to stick to it.
The current exploration licence
(2007/02) for the Citronen Fjord project
(Ironbark) does not include a royalty, and
therefore the proceeds from a royalty
were not negotiated in the SSE (Social
Sustainability Evaluation), state the
company concisely in the material.
It was not possible to get in touch with
the companys CEO, Jonathan Downes
prior to the deadline to hear how far he
will go to stick up for his rights. But in
the Ministry of Mineral Resources there is
no doubt that it is entirely premeditated
for the company to write as they do, despite the political decisions, which have
since been made.
Its an invitation to dance. Thats
quite clear. Its something we will have
to discuss. They may have their opinion,
but we dont share it. It will be settled by
negotiation and solved to the satisfaction
of everyone, says Jrgen Hammeken26
The Ironbark Zinc mine will be located 100 kilometres southeast of the worlds northernmost
mainland point, Cape Morris Jessup on the Peary Land peninsula near the small Citronen Fjord.
From here the lead and zinc concentrate will be sailed out three times a year in the open water
period between July and September.
IRONBARK INSIST:
NOT
Jonathan Downes, CEO of Ironbark Zinc maintains that the company will not pay royalty for mining
activities at Cape Morris Jessup on the Peary Land peninsula near the small Citronen Fjord
By Andreas Lindqvist
andreas@ag.gl
27
LEIFF JOSEFSEN
Randi Vestergaard Evaldsen: When you have made a decision, we also believe that you have to stick to it
THE DEMOCRATS:
We are waiting to hear what Naalakkersuisut has to say. But of course Ironbark Zinc must follow the rules and laws
for the mineral resources sector, says
Randi Vestergaard Evaldsen.
28
Kirkegaard:
Reason will
prevail
By Andreas Lindqvist
andreas@ag.gl
Jens-Erik Kirkegaard:I am
sure we can find a sensible
solution, as we also did with
London Mining.
Oil & Minerals #15
29
natural resources. Their overall evaluation is that none of the mineral resources
in Greenlands subsoil are so rare that
they could turn Greenland into a leading
global producer of any of the mineral
resources in question.
All the mineral resources in Greenlands
subsoil can also be found elsewhere in
the world.
The mineral resources, which industry
finds it difficult to get hold of, and which
are essential for manufacturing, are
called critical. The list of them changes
all the time in line with technological
development, global demand and market
adaptability. In recent years, there has
been a lot of media attention on rare
earths. The name is confusing, because
actually we are not talking about a
group of metals, which are rare. In fact
there are deposits in several places in the
world. The question is simply whether
FACT
Rare earths
Rare earths consist of elements in
the periodic table from No. 57 (lanthanum) to No. 71 (lutetium). 13 of
the elements have magnetic properties, but neodynium has so far been
most attractive for industry. Along
with iron and boron, the elements
provide the strongest permanent
magnets.
In these magnets you combine the
high magnetic strength of iron with
the capacity of rare earths to maintain the direction of the magnetisation, said Niels Hessel Andersen
to Videnskab.dk. He is a scientist
at Ris DTU and specialises in such
areas as rare earths.
In recent years, the potential of
Greenlands rare earths has been
attracting interest and has led to
a situation, where the resources
we know of in Greenland have
increased from 10.4 megatons
of total rare earths oxide to 38.5
megatons in 2015.
Chinas known reserves of rare
earths amount to 55 megatons,
while the reserves we know about
outside China are 85 megatons.
GMEs mining project in Kuanersuit includes uranium, zinc and rare earths. Here, staff are examining
a core drilling from the controversial mountain. Photo: GME
30
environmental problems related to mining, and it was cheaper to let China deal
with the mining of these metals. But, in
recent years, China needed the very same
metals for the countrys own factories.
This led to an attempt to initiate or
reopen rare earth mining projects in the
likes of Australia and the United States.
By Mads Nyvold
nyvold@sermitsiaq.gl
31
DOWN UNDER
Lots of experince to be gained from down under. Photo of The KCGM Super Pit The Goldfields is
the largest gold producing region in Australia.
33
Finishing
Touches
to Uranium Mine
In 2015 Greenland Minerals and
Energy were working to complete
their application to the Government
of Greenland for the mining of rare
earth metals, zinc, fluorine and
uranium at Kvanefjeldet in Narsaq
GME have been working intensively on
the Kvanefjeld project since 2007. They
have conducted both feasibility studies
at an altitude of six hundred metres and
profitability studies.
In late 2015 they put the finishing
touches to the societal and environmental studies.
The Government of Greenland must
first assess whether all the material
meets the requirements. When everything is ready, the materials can be sent
for consultation.
The most controversial issue is the
minerals that contain uranium.
Were talking about 350 grams per
1 ton of rock, explains Johannes Kyed,
GMEs Head of Social Responsibility.
GME have calculated that 10-15% of
34
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thora@sermitsiaq.gl
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35
CHANGE
Their Lives
From the helicopter one can see the expanse of Skovfjord with its turquoise waters and rocking icebergs, like a floating
sculpture park. No Renaissance painter
could have created more stunning shapes
and colours.
We are on our way to Narsaq and
Kvanefjeldet, which could turn Greenland into the fifth largest producer of
uranium in the world: larger than Russia
and larger than the United States and
China combined. Only the uranium
mines at McArthur River in Canada and
Ranger in Australia are bigger.
The radioactive material is only an
added bonus for the Australian mining company, Greenland Minerals and
Energy (GME).
The rare earths are really interesting.
This is a group of metals, which are
used in mobile phones, laptops and the
aerospace industry, and Kvanefjeldet is
crammed with them.
According to the mining company, the
mine could yield an annual turnover of
Is it now or never? Narsaq is very much in need of the financial injection, which the mine would
provide. But many people are afraid of the consequences for themselves and their children.
36
Uranium
opponents look to other
sectors for job growth
Opponents of uranium mining
in southern Greenland have put
forward a list of proposals they
believe can create jobs and in the
process make a highly contested
mine unnecessary
In the town of Narsaq, on Greenlands
southern tip, debate is coming to a head
over whether residents can make do
without a near-by mine that will create
jobs, but which some fear will make the
town unliveable.
The concerns come as Greenland Minerals and Energy, an Australia-based mining outfit, closes in on final approval to
begin production rare earths, a mineral
vital for use in modern technologies.
Proponents say the mine, located on a
plateau some 10km outside the town of
1,500 will create jobs that can be filled
by its 200 or so unemployed. But in order to extract rare earths, GME will also
need to mine uranium as a by-product,
and that has raised fears, particularly
among farmers, sheep farmers and those
making a living off tourism, that dust
from the open-pit facility will taint the regions soil and water, and in the process
spoil the regions image.
Instead representatives from Urani
Naamik, an anti-uranium group, together
with IA, the main opposition party,
have put forward 17 proposals they say
could help to stimulate job growth in
other sectors of the economy, including
agriculture, fishing and bottling of glacial
meltwater.
Against uranium mining
Until 2013, mining uranium in Greenland
was explicitly banned. A law change
opened up the possibility for such operations to be approved, but the issue
remains divisive.
Were told that without a mine out at
38
By Kevin McGwin
kevin@arcticjournal.com
New jobs
for Narsaq
A list of propsals uranium mining
opponents believe could lead to job
creation in Narsaq
- Year-round fish processing
- Production of fish powder using
fishing industry waste
- Meatpacking
- Chicken farming and egg production
- Commercial fishing using modernised vessels, purchased with public
investments
- Duck and goose farming
- Development of new food products, together with the local meatpacker, fish processing plant and
cooking school
- Hothouse farming
- Harvesting of aquatic plants
- Production of lambswool
- Producing preserves and juices
from wild berries
- Import of consumer goods for local
resale
- Colleting and selling scrap metal
- Bottling glacial meltwater
- Honey production
- Establishment of a music school in
Narsaq
- Production of smoked fish
Dont
By Poul Krarup
krarup@sermitsiaq.gl
39
Uranium
Mine
Greenland Minerals and Energy
had high hopes of submitting
an exploitation licence
application in mid-2015
In the summer of 2015, officials at the
Mineral Licence and Safety Authority
were supposed to be busy tackling a
controversial application.
An application, which opponents fear
will destroy South Greenlands nature
and contaminate the environment for
thousands of years. An application,
which supporters hope will create loads
of new jobs and pave the way for a
brand new export product.
But the officials did not receive any application for the exploitation of uranium,
zinc and rare earths in Kuannersuit. The
Australian company, Greenland Minerals and Energy had led investors and the
general public to believe that it would be
submitting the application in late 2014
or early 2015.
The moment was postponed.
Of course, delays are generally frustrating, said John Mair, CEO of Greenland Minerals and Energy.
Delays can reduce confidence on the
part of potential partners. But, in terms
of the projects funding and debts, it
can be considerably more problematic.
We are by no means at that point yet,
declares John Mair.
A significant uranium exporter
Greenland Minerals and Energy (GME) has
invested half a billion kroner in the Kuannersuit mining project near Narsaq. The
total investment required is in the order of
DKK 11 billion at the current rate of the
40
GMEs CEO:
POLFOTO
Even more
important
to meet
deadlines
nyvold@sermitsiaq.gl
41
UNNECESSARY
After a long and emotional debate on 24 October 2013, Siumut and Atassut voted to repeal zero tolerance of radioactive minerals, though it had never
been adopted. Note that Hans Enoksen (Siumut) voted against the repeal along with Inuit Ataqatigiit, the Democrats and Partii Inuit. The repeal was
adopted with a majority of just one vote.
42
FACT
Guess a year
The 4th edition of the information
booklet on the mining of uranium
in Greenland was written by the
geologists, Per Kalvig and Karsten
Secher of the National Geological
Survey of Denmark and Greenland
(GEUS) and the chemical engineer,
Gert Asmund of the National Centre for Environment and Energy. The
first two editions (2010 and 2012)
state: since 1985, current practice
in Greenland has made it impossible
to look for, or mine uranium. The
3rd and 4th editions state simply
that Inatsisartut repealed zero tolerance in 2013.
Historical protests, as politicians opened the autumn session, which resulted in a repeal of the ban on
the mining of uranium-bearing minerals.
Danish Institute for International Studies (DIIS), was also puzzled about the
issue of zero tolerance, so dug into the
archives, including the Danish State Archives, to get to the bottom of this story.
In 1988, the Joint Council for Mineral
Resources in Greenland met twice. But,
according to the minutes of the meetings, there was no recommendation for
the introduction of zero tolerance, says
Gry Thomasen.
Last week, at a seminar on uranium in
Nuuk, she presented the results of her
research.
In 1986 and 1988, the Joint Council
recommended the award of exploration
licences to three companies to conduct
explorations in an area at Sarfartoq [English: Paradise Valley] in Kangerlussuaq
Fjord. One of the targets of the exploration was niobium, of which uranium is a
by-product. In 1990, the 1989 exploration licence was extended.
The Joint Councils 1988 and 1989
annual reports reviewed these licences
and the Councils recommendations, but
there is no mention of a fundamental
decision or recommendation for zero
tolerance, says Gry Thomasen.
In fact, according to the minutes of
the meeting on 20 October 1988, the
chairman of the Joint Council, Jonathan
Motzfeldt, stated that both the niobium
deposit in Sarfartoq and other mineral
deposits in Greenland ether contained
or were found together with various
degrees of uranium.
Oil & Minerals #15
REMEMBER
Our Memory
That means biting ones tongue,
if Greenland wants to export
uraniumThe institutional memory
of the Danish Realm is weak,
notes the researcher Gry Thomasen
of the Danish Institute for
International Studies.
After an embittered debate, Inatsisartut
repealed zero tolerance of radioactive
minerals in the 2013 autumn session.
But the research of Gry Thomasen, a
researcher at the Danish Institute for
International Studie, confirms that the
Joint Council for Mineral Resources in
Greenland definitely did not introduce
zero tolerance in 1988:
The lack of memory led to an unnecessary debate, which still divides the
people of Greenland and causes difficulties between Naalakkersuisut and the
Danish government. The vote in Inatsisartut two years ago paved the way for
mining, in which uranium is included as
a by-product. That makes Greenland a
uranium-exporting country and places
demands on Greenland and the Danish
Realm that are very different from the
export of prawns and rubies.
A clear policy
In Nuuk, Gry Thomasen, presented her
findings.
44
LEIFF JOSEFSEN
At the latest Nunaminerals AGM, Naalakkersuisut handed over the company to the British financier. At the front to the right, wearing
glasses, we see Patrick Newman, who now heads the company.
Expert:
THE TAKEOVER
main interest is licences or the drill samples, of which the company is in possession. It would be possible to purchase
the licences much more cheaply than the
DKK 10 million the restructuring would
cost, if Nunaminerals went bankrupt.
And the drill samples are not worth
very much, he claims.
Particularly because they currently owe
the Government and their creditors a lot
of money. If Nunaminerals went bankrupt,
the licences would naturally be handed
back, and then one could just ask to take
them over, said Jesper Ilse to AG.
Speculating in Tax Regulations
He believes that actually the manoeuvre
is a creative tax move.
But Patrick Newman rejects this. He is
now in charge of Nunaminerals, after his
consortium, GMM took over the controlling interest.
Im not a tax lawyer. But we only got
involved in the whole Nunaminerals issue, because we feared that we and the
Koreans were about to lose our licence
FACT
For much of its 25-year existence,
Nunaminerals has been a sure winner for Greenlands government.
Historically, for each krone that has
been injected into the nationally
controlled mining firm, Nunaminerals has been able to attract an
additional five kroner in foreign
investment. Perhaps that would explain why Inatsisartut, the national
legislature, itself facing a DKK 83
million ($14 million) budget deficit
next year, agreed to a government
request earlier in 2015 to earmark
an additional DKK 4.5 million in
funding to keep the firm afloat.
45
China is on a global shopping spree for mineral resources and geopolitical influence in the Arctic.
WORRYING
The Danish Defence Intelligence
Service is following Chinese
investments in Greenlands
underground
46
By Kurt Kristensen
kurt@sermitsiaq.glw
GREENLAND SURVEY
www.asiaq.gl
47
Crouching General,
Hidden Iron
Huge mining
conglomerate
General Nice Development is a mining conglomerate
with more than 12,000 employees. The company operates in
China, Singapore, Indonesia, India,
Thailand, Tajikistan, South Africa,
the United States, Australia, and
Russia.
The ISUA licence is so marginal
that it is not even mentioned on the
companys website.
The large-scale mine in Nuuk
Fjord is several years in the future.
Ideally, it will be established in parallel with other huge projects so they
can share infrastructure, said Jenny
Yang of General Nice Development
the other day at a conference in
Copenhagen. As a representative
of the Chinese mining industry with
close links to the government in
Beijing, Jenny Yang suggested the
establishment of an international
fund to finance mining in the Arctic.
The Nordic Resources Development Fund was the working title.
48
Poor iron prices have led to the shelving of the Isua project yet again.
www.greenland-travel.com
49
New
China Proposes
Private and public investors from
China, Scandinavia and other countries should join forces to establish
a major fund to invest in major
mining projects in the Arctic
The Nordic Resources Development
Fund
With this headline, a representative of
the Chinese mining industry launched
an idea to consolidate venture capital in
an international fund for investment in
major Arctic mining projects.
The proposal came during a conference in Copenhagen on investments
in Greenlands mining industry. It came
from the Chinese mining giant General
Nice Development, whose Vice President,
Jenny Yang, in her presentation, introduced the concept of a financially strong
fund: to invest, on one hand, in
mines and, on the other, in the necessary infrastructure such as ports and
power plants.
Proposal from Beijing
Participants in the fund could be industrial investors, financial institutions and
others, said Jenny Yang. Her proposal
did not go into detail, but there was a
very positive response from a number of
stakeholders in and around the mining
industry who attended the conference.
The proposal evidently does not come
from the Chinese mining company alone.
50
Just before, Jenny Yang had highlighted the close relationship between the
company and the Chinese government,
and other governments, illustrated with
a photo of executives from General Nice
Development with Chinese President Xi
and Russian President Putin.
No pension money
Recent notions of investment in the
mining industry by Danish pension funds
were put to sleep at the conference.
During a panel debate, Claus Lyngdal,
Head of Investment at Pension Danmark,
warned against nourishing hopes that
billions of Danish pension funds would
be available as venture capital.
In recent years, Pension Danmark
has invested in the likes of wind farms,
broadcasting networks and the leasing of
British trains, but these are projects with
a minimal risk of loss. With reference to
the mining industrys need for investment, Claus Lyngdal noted that: the
projects, which have been mentioned
today, are undoubtedly excellent, but our
appetite for risk is very small.
A possible fund
But he would not completely close the
door in terms of the billions of kroner
in Danish pension funds and projects in
Greenland. Maybe there is infrastructure,
which the pension funds will invest in,
but I have not yet seen such projects.
We have no obligation to invest in
Aluminium
Giant
Releases Huge Hydropower Potential
Alcoa is now losing the monopoly
on the access to hydropower from
two lakes near Maniitsoq. Until
now the potential had been
reserved for the aluminium project
and excluded other possible users
Alcoa is no longer counting on building
an aluminium foundry at Maniitsoq. This
must be the conclusion, now that the
major American company is voluntarily
releasing the Government of Greenland
from one of their most maligned commitments in the declaration of intent,
which was signed between the parties
ten years ago.
It was in this agreement that the then
Government agreed to reserve Greenlands biggest potential from Lake Tasersiaq between Maniitsoq and Kangerlussuaq for the company for 50 years, while
the company mulled over whether or not
they would invest in Greenland.
The potential from the smaller lake,
Tarsartuup Tasersua, which has the
perfect strategic location for prospective
iron production at Isua, was also locked
because of the agreement.
But that is over now says Vittus Qujaukitsoq (Siumut), Minister of Finance
and Domestic Affairs, who was responsible for some of the final negotiations
with the company, when both parties
were in Maniitsoq to inform the residents
of the town about the development.
Three-phase process
We really want the project to succeed.
Oil & Minerals #15
Hydropower to be marketed
As soon as the new agreement has
been signed, he will set about marketing the potential of hydropower to other
stakeholders. For example, the planned
extension of the lake cable might lead to
Andreas Lindqivist
andreas@ag.gl
51
Gold
hunting in
Godthb Fjord
MADS NYVOLD
MADS NYVOLD
The first gold of the trip was found after 38 minutes and placed in a test tube.
52
MADS NYVOLD
OIL SUPPLY
COMPANY FOR ALL
OF GREENLAND
We supply oil to mining
and oil industries
Contacts
Energy Manager
Tage Lindegaard
tal@kni.gl
Logistics Manager
Niels Chemnitz
niz@kni.gl
01-12-2015 14:36:14
53
Opinion:
Lemon
A major mining project at Citronen
Fjord has moved a little closer,
which again raises the question of
mineral royalties. However, royalties on minerals are a poor and
ill-considered tax, which should
be removed because it prevents
investment in mineral exploration
A few years ago, Greenland chose to
introduce a royalty tax on new mining
projects.
The attraction of such a tax is very
simple. It is easy to manage and it
yields immediate income if there are
mines in operation. It is a temptation,
which any Minister of Finance hungry for
revenue finds it hard to resist. During recent years of high prices, many countries
with established mining industries chose
to introduce such a tax.
Just because other countries introduced a royalty tax, it is not necessarily
a good idea, and certainly not in Greenland. The ideal would be a system, which
taxed extraordinarily large profits when
they occurred, in addition to an ordinary corporation tax. Such taxes on the
high profits that may be earned in times
of high mineral prices do exist, there
is experience of them and it is no big
mystery how they work and they are well
suited for their purpose which is collecting the governments share of the value
of minerals.
It goes without saying that investors
would rather be free of taxes. However,
if mines need to be taxed, it is vital for
investors to know the terms and conditions from the very first moment they invest. That is why Greenland very sensibly
includes a mention of the tax in exploration licences.
The problem of a royalty tax is that in
many ways it is socially inefficient. The
54
By Knud Sinding,
Associate Professor, MSc, BComm, PhD.,
Department of Environmental
and Business Economics.
Oil & Minerals #15
Large Ruby
Crystals Found
in the Mountains
A father and son have found two
ruby crystals, which are among the
largest in the world. They will be
sold at auction in the United States
Two mineral hunters have found two
very large ruby crystals, which they say
are among the largest in the world.
The men responsible for the find are
Lars Jepsen, who has a so-called personal
small-scale licence, and his son, AngnguaK Thomas Jepsen.
The two crystals, which have been
named Angakkoq 1 and Angakkoq 2,
weigh respectively 865 grams and 497
grams and have a carat of 4.325 and
2.485.
Were talking about very large ruby
crystals, which are among the largest in
the world, in terms of recorded global
finds, says AngnguaK Thomas Jepsen.
Great quality
He adds that the ruby crystals were
Uncut
These are rough ruby crystals that have
been neither cut nor in any other way
processed. The mineral hunters will now
try to get the stones sold at an auction in
the United States.
In this context, the ruby-discoverers are
receiving assistance from the American
geologist, Eric C. Drummond, who works
as a consultant for Greenland jewel hunters. Eric Drummond is well-known from
the Animal Planet TV series, Ice Cold
Gold, which involved a group of adventurers searching for gold and rubies in
Greenlands subsoil.
Drummond owns the company Red Ice
Gem, which deals with the practicalities
of getting the stones put up for sale in
the United States.
In December 2013, a Greenland ruby
crystal shaped like an apple with a leaf
and a stem of Greenlandic gold was
put up for auction in the United States.
But no sale went through, because the
Greenland sellers did not achieve the
reserve price of DKK 55,000.
By Mads Dollerup-Scheibel
mads@sermitsiaq.gl
55
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