Monitoring and Evaluation Report 2015 for the Impact Benefit Agreement in Relation to the AAPPALUTTOQ RUBY- PINK SAPPHIRE PROJECT GREENLAND
Total Page:16
File Type:pdf, Size:1020Kb
Monitoring and Evaluation Report 2015 for the Impact Benefit Agreement in relation to the AAPPALUTTOQ RUBY- PINK SAPPHIRE PROJECT GREENLAND 1 Prepared by: True north Gems Greenland Imaneq 33, 5. sal Postboks 990 3900 Nuuk, Grønland Table 1 Reporting and Evaluation activity Party/Parties DATE Final Draft True North Gems Greenland 2016-01-18 Approval Government of Greenland 2016-01-18 Kommuneqarfik Sermersooq 2016-02-15 2 Content 1. INTRODUCTION 4 2. TRUE NORTH GEMS GREENLAND (THE LICENSEE) 5 3. ACTIVITIES 5 3.1 Activities in General in 2014/2015 5 3.2 Mine site: Construction activities in 2014/2015 6 3.3 Shipping between Nuuk and Mine site 7 3.4 Activities for the coming years 7 Mine Site and shipping 7 Nuuk facilities 7 4 COOPERATION WITH AUTHORITIES AND IBA-PARTIES 8 4.1 The legal framework for the Rubi Mine at Aappaluttoq 8 4.2 True North Gems exploration and exploitation licenses 8 4.3 The Impact Benefit Agreement 9 4.4 Other approvals 10 5 GREENLAND WORKERS 11 5.1 Origin and gender of employees 11 5.2 Type of Job Categories 11 Foremen 13 6 EDUCATION 13 6.1 Educational activities in 2014/2015 13 Apprenticeships in 2014/2015 13 6.2 Allocated funds 14 6.3 Educational activities in the coming year 14 7 GREENLAND ENTERPRISES AND LOCAL BUSINESSES 15 7.1 Greenland enterprises 15 7.2 Local business opportunities for inhabitants in Qeqertarsuatsiaat 17 Supplies with fish and meet 17 Supplies from the local grocery store in Qeqertarsuatsiaat 17 7.3 Non-Greenlandic Companies 17 8 DEVELOPING GREENLANDIC ENTERPRISES 17 8.1 Contributions to develop other Greenlandic companies in the mining industry 17 8.2 Contributions to development of a gemstone industry in Greenland 18 Sale to local artisans etc. 18 Small scale miners 18 Polishing courses 18 Other potential contributions to the development of a gemstone industry in Greenland 19 9 TAX AND REVENUES FROM ROYALTIES 19 9.1 Public revenues in 2014/2015 19 9.2 Future fiscal benefits for Greenland 20 10 COMMUNICATION, CULTURAL ISSUES, FUNDS ETC. 20 10.1 Communication 20 10.2 Cultural and social fund 21 11 REVISION OF THE CONTENTS IN THE APPENDICES TO THE IBA 22 3 1. Introduction The Aappaluttoq Ruby Project is located in southwest of Greenland (inhabitants: 55.984), approximately 150 kilometres south of the capital Nuuk (inhabitants: 16.992) and 20 km southeast of the settlement of Qeqertarsuatsiaat (inhabitants: 198). The expected life of mine is 9 years and it is expected that the annual mining rate will be an average of approx. 350,000 tonnes of which approx. 21,000 tonnes will be ore. The production runs from the beginning of April to the end of November each year. Figure 1: The Appaluttoq project - 63° o' 39" latitude and 50° 19* 11" longitude On June 16th 2014 The Minister for Industry and Mineral Resources, The Mayor of Kommuneqarfik Sermersooq and the Managing Director of True North Gems Greenland signed the Impact Benefit Agreement (IBA)1 in Qeqertarsuatsiaat. The IBA is an agreement that sets conditions and targets for the Aappaluttoq Ruby- & Pink Sapphire project to ensure that Greenland, the region and not least the local community benefits from the project, mainly but not only in form of jobs, business opportunities together with training and educational offers in relation to the mining industry. The IBA and the efforts that the Company has put into the project, specifically to achieve the conditions and targets in the IBA, will be evaluated in an annual report. The annually conducted evaluation will constitute the basis for discussions concerning whether the appendices to the IBA will need adjustments for the following years and whether the Company needs to pay special attention to certain subjects. It is the provisions in the appendices to the IBA that stipulate the lion share of the different targets for the projects use of Greenland Workers; training and educational activities; contributions to development of Greenland business activities and companies; and other socio economic and sustainability matters. This IBA Monitoring Report is the first of its kind for this project and it covers the period from June 2014 to June 2015 and has been drafted in close cooperation with the Ministry of Industry, Labour and Trade. 1 http://naalakkersuisut.gl/~/media/Nanoq/Files/Publications/Raastof/ENG/Signed%20IBA%20TNG%20ENG%2016% 2006.pdf 4 Each section in the report gives an insight on how the project has performed in relation to targets stipulated in the IBA: Section 2 gives a short presentation of True North Gems Greenland; Section 3 gives a description of the main project activities conducted since the initiation of construction in September 2014 (appendix 1 to the IBA). Section 4 gives a short update on the cooperation with the authorities and the parties to the IBA. Section 5 gives an account on the project’s use of Greenland workers. Section 6 gives an account of the conducted training and educational activities. Section 7 and 8 gives an overview of the projects contribution to Greenland businesses activities. Due to public interest in the Project’s tax contribution this has been included in section 9. Section 10 describes other socio-economic or sustainability activities conducted by True North Gems Greenland in the last year or so. Finally, Section 11 describes changes made in the IBA based on lessons learned from the past Year. 2. True North Gems Greenland (the licensee) True North Gems Inc. (TNG) is a public junior exploration company dedicated to the exploration and Development of colored gemstone deposits. TNG is committed to the realization of shareholder value through development of the first ethically sourced commercial ruby mining operation, in partnership with the people of Greenland. The Company’s shares are traded on TSX Venture Exchange (in Toronto, Canada) under the symbol TGX. Prior to being granted an exploitation permit in March 2014 the Greenlandic subsidiary, True North Gems Greenland A/S (TNGG) was set up. In 2012 TNG entered into a Joint Venture with the highly Arctic experienced Norwegian mining company Leonard Nilsen & Sønner (LNS). The Joint Venture made LNS a partner in the “Aappaluttoq-project” and co-owner of TNGG and at the same time making the Greenlandic based subsidiary to LNS, which is LNS-Greenland, the operator. By the end of June 2015, LNS had 7% ownership in TNGG. Once the construction phase has a completion of 50% LNS will get additional 5%, at 75% a further 5% (total of 10%) and on a completion of 100% LNS will get another 10% making a total of 27%. Greenland Venture has also invested in TNGG and by doing so acquired an ownership of 0.66%. True North Gems Greenland is based in Nuuk. At the moment TNGG runs all planning and administration from the office in Nuuk. At the moment, the project is in the construction phase. Later this year it is planned to go into production, and by that time the Company will also have established a Rough Handling and Cleaning facility and the Administration facility will be prepared to include a Sorting facility. 3. Activities 3.1 Activities in General in 2014/2015 A detailed description of the necessary facilities for constructing the mine and getting it into production can be found in the Social Impact Assessment, which are available on the Greenland Government and the company’s web site2 and a short description can also be found in appendix 1 to the IBA. As it appears in this section, then the activities since September 2014 have been construction activities at the mine site and shipping activities between Nuuk and the mine site. When the IBA was signed in 2 http://naalakkersuisut.gl/~/media/Nanoq/Files/Hearings/2013/TNG%20QEQ/Documents/VSB%20%20endelig%20v ersion%20v52Eng.pdf http://www.truenorthgems.com/ (Choose under ”Greenland Ruby”) 5 June 2014, all focus from True North Gems Greenland and LNS-Greenland (JV Partner and operator) were on the mine site and getting the construction started. Picture 1: The Camp and Helipad June 2015 3.2 Mine site: Construction activities in 2014/2015 The Operator had done excellent planning and a few days after initiating the construction phase in September 2014 the operator broke ground at the site. Though late in the season and facing an early – and very cold – winter, the operator has been able to continue the construction with only minor delays. The construction phase has been a very busy period and both the Company and the operator have utilized several suppliers and sub-contractors. In Section 7 all Greenlandic suppliers, sub-contractors and vendors are listed in Table 13. As it appears in Table 2 most of the facilities are currently (July 2015) under construction. The only part of the facilities where construction is not initiated is the open pit mine. Table 2: Status for construction at mine site - July 2015 Installation/facility Status Pit Construction has not yet begun Accommodation for 43 persons Finishing interior Details Health Clinic Finishing interior Details Finishing interior details. Kitchen Applying for approval of Quality Management Program Camp Canteen Finishing interior Activity Room Finishing interior Electric Plant Under construction Water supply Under construction Waste Water plant Under construction Under construction Helipad Working on having flight site Manual approved Harbour – Outer Port Under Construction Work trails established Roads Applying for approval to complete road constructions Lowering water level Has begun Process Plant Construction has begun Workshop Construction has begun 6 3.3 Shipping between Nuuk and Mine site From the time construction began in September 2014, the operator has had to move a considerable volume of building equipment, machines, tools, fuel and spare parts required for the construction, along with workforce and supplies for these between Nuuk and the mine site.