Authors:

Thaarup, Simon M.; Poulsen, Majken D.; Thorsøe, Kisser; Keiding, Jakob K.

Study on Arctic Mining in Greenland (ca. 6 mb)

 

 

 

 

 

 

 

The Arctic region has a huge business potential and offers many possibilities, but to some extent, Arctic markets are not very familiar to most companies. It is therefore important to provide information about the markets, their characteristics and the operating context. This report gives an overview of the mining market and context in Greenland.

Mining activities have so far been limited in Greenland considering the potential. A relatively weak record of mining activity appears to contrast with the metal endowment and existence of numerous mineral occurrences and several world class mineral deposits.

Mineral exploration and mining in Greenland often occur in remote areas, usually far from existing infrastructure. This necessitates expensive transportation and establishment infrastructure. The remoteness, harsh Arctic climate and rugged terrain are negative factors often resulting in extra expenditures compared to most other jurisdictions.

The many deep fjords in Greenland offer excellent opportunities for deep-sea port and shipping capacity. The social license to operate is in general very favourable in Greenland, and an ambitious new mineral strategy can be instrumental to attract new investments to mining in Greenland. Currently, Greenland is undergoing a phase of rapid development, and large government-funded infrastructure projects are in progress including new airports.

 

Contents
Preface………………………………………………………………………………………………………………………………………………………………….9
1 Greenland in general……………………………………………………………………………………………………………………………….11
   1.1 Geography and Climate…………………………………………………………………………………………………………………………..11
   1.2 History and politics……………………………………………………………………………………………………………………………………..14
      1.2.1 Before the Home Rule………………………………………………………………………………………………………………14
      1.2.2 History of politics in Greenland from 1970 to present………………………………………………………………15
   1.3 Demography…………………………………………………………………………………………………………………………………………………….20
   1.4 Infrastructure……………………………………………………………………………………………………………………………………………………21
      1.4.1 Transportation………………………………………………………………………………………………………………………..22
      1.4.2 Electricity, water and heat…………………………………………………………………………………………………….23
      1.4.3 Telecommunication……………………………………………………………………………………………………………….24
   1.5 Economy……………………………………………………………………………………………………………………………………………………………..24
   1.6 Biodiversity………………………………………………………………………………………………………………………………………………………..25
   1.7 Protected areas……………………………………………………………………………………………………………………………………………….26
   1.8 Geology and mineral resources………………………………………………………………………………………………………….28
      1.8.1 The crystalline basement and orogenic belts in Greenland……………………………………………….29
      1.8.2 Sedimentary basins……………………………………………………………………………………………………………….33
      1.8.3 Palaeogene volcanism…………………………………………………………………………………………………………..34
      1.8.4 The ice age and the Quaternary landscape………………………………………………………………………….36
      1.8.5 Soil Conditions……………………………………………………………………………………………………………………….37
      1.8.6 Mineral resources…………………………………………………………………………………………………………………..37
      1.8.7 Historic mining activities in Greenland………………………………………………………………………………..42
   1.9 Licenses and mining in Greenland…………………………………………………………………………………………………..45
2 Legal framework, challenges and opportunities for mining in Greenland……………………………………………………49
   2.1 Regulatory framework………………………………………………………………………………………………………………………………49
      2.1.1 Impact Benefit Agreement (IBA)………………………………………………………………………………………….54
   2.2 Availability of labour…………………………………………………………………………………………………………………………………..55
   2.3 Taxes and royalties……………………………………………………………………………………………………………………………………….57
   2.4 Actions to attract investors……………………………………………………………………………………………………………………59
   2.5 Infrastructure and logistics……………………………………………………………………………………………………………………62
   2.6 Mining waste and waste management………………………………………………………………………………………..63
   2.7 Social License to Operate (SLO)………………………………………………………………………………………………………….64
3 Case Study 1 – White Mountain Project………………………………………………………………………………..65
   3.1 Discovery and description of the deposit…………………………………………………………………………………..65
      3.1.1 Mining operation……………………………………………………………………………………………………………………68
      3.1.2 Process facilities …………………………………………………………………………………………………………………….68
      3.1.3 Infrastructure …………………………………………………………………………………………………………………………71
      3.1.4 Water and waste management …………………………………………………………………………………………….71
      3.1.5 Technical applications of GreenSpar …………………………………………………………………………………….71
      3.1.6 Challenges Experienced …………………………………………………………………………………………………………72
      3.1.7 Land and Conflicts………………………………………………………………………………………………………………….72
4 Case Study 2 – Isua Banded Iron Formation ……………………………………………………………………….73
   4.1 Discovery and description of the deposit …………………………………………………………………………………..73
   4.2 Project status ……………………………………………………………………………………………………………………………….75
      4.2.1 Process facilities …………………………………………………………………………………………………………………….76
      4.2.2 Infrastructure …………………………………………………………………………………………………………………………77
      4.2.3 Waste management……………………………………………………………………………………………………………….80
      4.2.4 Water management ……………………………………………………………………………………………………………….80
      4.2.5 Land and Conflicts………………………………………………………………………………………………………………….80
5 Case Study 3 – Nalunaq Gold Mine, Kirkespir Valley ……………………………………………………..82
   5.1 Discovery of the deposit and deposit description ……………………………………………………………….82
      5.1.1 Deposit description ………………………………………………………………………………………………………………..87
      5.1.2 Project status ………………………………………………………………………………………………………………………….91
      5.1.3 Production facilities ………………………………………………………………………………………………………………92
      5.1.4 Infrastructure …………………………………………………………………………………………………………………………94
      5.1.5 Water management ……………………………………………………………………………………………………………….95
      5.1.6 Waste management……………………………………………………………………………………………………………….95
      5.1.7 Earlier challenges in the Nalunaq Gold Mine ………………………………………………………………………96
      5.1.8 Land and Conflicts………………………………………………………………………………………………………………….97
6 Summary …………………………………………………………………………………………………………………………………………………… 99
Acknowledgement ………………………………………………………………………………………………………………………………………..103
References …………………………………………………………………………………………………………………………………………………………. 104

Appendix A: Comparison of mineral claims in Greenland,British Colombia and Western Australia………………………………………………. 131