FACTS ‘N’ FIGURES — Greenland exploration on rise

The last operating mine in Greenland closed in 1991, prompting the government there to amend the Mineral Resources Act. The move was intended to bolster the island’s sagging mineral resources sector.

New licensing terms were introduced, and the government began an intensive marketing campaign aimed at the international mining community. The result has been a marked increase in the number of licences granted and in the area being explored. There has also been a rise in the number of foreign companies working there.

Since the new licensing terms were introduced, exploration activity in Greenland has risen steadily. About 20 licences covered 10,000 sq. km when the revised Mineral Resources Act was introduced in 1992, whereas, as of Jan.

1, 1996, 35 exploration licences covering 23,127 sq. km had been granted. As of April 1 of this year, 70 explorations licences covered an area of 75,810 sq. km.

Two developments in the mineral industry in recent years have led to a marked increase in the exploration of Greenland.

The discovery in 1994 of a large nickel-copper-cobalt deposit near Voisey’s Bay, Labrador, has generated expectations that similar occurrences might exist in parts of western and southwestern Greenland.

Also, the discovery of kimberlite indicator minerals in 1995 suggested to companies that southwestern Greenland has potential for diamonds similar to that that is known to exist in the Northwest Territories.

As a result of these developments, territory covered by exploration licences rose to 60,525 sq. km at the end of 1996 from 8,788 sq. km at the end of 1994 — a 7-fold increase. During the same period, exploration activities also rose considerably, albeit not at the same rate. (Exploration commitments are relatively small during the first few years of a licence period.) The vigorous growth in exploration has continued into the first half of 1997.

The entire region of western Greenland, from Qaqortoq in the south to Nordre Stromfjord in the north, is virtually covered by exploration licences, and record levels of exploration, chiefly for diamonds, are expected this year.

Results from this diamond exploration will determine the extent to which licences are renewed in the future.

— The preceding is an excerpt from the 1996 annual report of the Mineral Resources Administration for Greenland.