Global demand for raw materials is increasing, and we believe Greenland can play a part in meeting demand.
Canada’s Fraser Institute just ranked Greenland second place among mining jurisdictions in terms of current mineral potential, first for political stability and first for security. In other words, Greenland looks like a safer play with substantial mining potential.
Geologically Greenland is part of the North American continent, and there is a strong correlation between the major rock divisions of western and northern Greenland and those of neighbouring Canada. But in contrast to Canada, Greenland is relatively unexplored for minerals and petroleum.
But times are changing. In recent years Greenland has experienced an increased focus on mineral and petroleum exploration, and a number of interesting discoveries. The Greenland Self-Government (the island is politically part of Denmark) is eager to boost these activities and accelerate the establishment of a more substantial mineral industry on the island.
“The possibility of giant discoveries can justify costs involved in exploration in Greenland, and we are here to help neighbour investors and exploration companies like the Canadians get the full potential out of their Greenlandic investments,” Jorn Skov Nielsen, director of Greenland’s Bureau of Minerals and Petroleum, told attendees at the Prospectors and Developers Association of Canada convention in 2011.
Greenland’s geological setting is well known through years of studies by the Danish and Greenlandic Geological Survey. Mineral deposits include gold, platinum group metals (PGMs), nickel, copper, molybdenum, specialty metals such as tantalum-niobium in pyrochlore, rare earth elements (REEs) and industrial minerals such as iron.
Mining that has taken place on the island includes: cryolite in Ivigtut; lead-zinc in Blyklippen and Black Angel; marble in Appat; olivine in Seqi; graphite in Amitsoq and Eqalussuit; coal in Qullissat and Qaarsuarsuk; gold in Nalunaq; and copper from the Josva mine and King Frederikmine in South Greenland.
With respect to REEs, nine significant deposits have been explored, with three having reached an advanced stage of exploration. Indeed, two of these deposits may prove to be among the 10 largest REE deposits in the world.
Several gemstone discoveries have been made in the recent years, including diamonds, sapphires and rubies. The ruby-sapphire project at Fiskenaesset has reached an advanced stage and is expected to start production in the near future.
An example of a successful Canadian base metals explorer in Greenland is North American Nickel, which is advancing its Maniitsoq nickel-copper-PGM project to the drilling stage, 160 km north of Nuuk in southwest Greenland.
One of the most advanced Greenlandic projects is the Isua iron ore project, which is wholly owned by U.K.-based London Mining. Isua is located 150 km northeast of Nuuk and 100 km from a proposed, year-round deepwater port, and hosts over a billion tonnes of indicated and inferred resources grading 35% iron. The broad plan is to mine the deposit from an open pit at a rate of 15 million tonnes per year, and pump slurried concentrate through a pipeline to the coast, where it would be shipped to international markets. A study sees the mine producing a premium-quality, 70% iron pellet feed concentrate over an initial 10-year initial mine life at an estimated capital expenditure of US$2.4 -billion.
With respect to permitting, the Bureau of Minerals and Petroleum (BMP) is responsible for all case processing, and is the only authority the industry needs to contact to receive the necessary licences to get started in Greenland. This ensures a one-stop efficient processing of applications for petroleum and mineral resource activities.
Usually it takes no more than six months to be issued a licence from the time a company submits a final application to the BMP.
Logistics are perhaps the greatest challenge of working in Greenland, which is the world’s largest island, but is home to only 56,000 people.
A modern infrastructure exists, but it is based on air transport and shipping, making daily schedules vulnerable to nature.
Local warming and recent years of growing petroleum and mineral resource activities in Greenland are, however, strengthening the supply chain on the island almost every day.
The Danish Embassy in Canada is extending an invitation to Canadian mining companies, investors and other mining stakeholders to participate in an exclusive visit to Greenland tentatively scheduled for Sept. 2–7, 2012.
The objectives are to obtain in-depth and on-site knowledge of business opportunities, develop personal networks with the local authorities, political stakeholders and suppliers and meet Nordic investors. Representatives from the Greenlandic Self-Goverment and from BMP will participate in the trip.
More information can be found at canada.um.dk/the-trade-council/, or by contacting Morten Siem Lynge at morlyn@un.dk.
— The author is the Head of Mission, Consul and Trade Commissioner at the Royal Danish Consulate General in Toronto. Please visit canada.um.dk for more information on the consulate.
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