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BUSINESS
OPPORTUNITIES
IN GREENLAND
PROJECT OVERVIEW 2018
BUSINESS OPPORTUNITIES IN GREENLAND - PROJECT OVERVIEW 2018 - ACRM | Arctic Cluster of ...
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 - ACRM | Arctic Cluster of ...
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.
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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
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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
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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.
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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
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          North West Passage
          North East Passage
         Central Arctic shipping route

                                                    North Pole

New Arctic shipping routes
BUSINESS 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

                                                                                                                     3
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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 court
16                                                          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 shipping
BUSINESS 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 Greenland
18                                                       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 greater
BUSINESS 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 capacity
BUSINESS 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 approval
22                                             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 targets
24                                                       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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