Annual Report 2002

The Bureau of Minerals and Petroleum

Preface

The year 2002 has demonstrated that the many The close cooperation between Greenland and years of work to establish a sustainable mineral Denmark on raw materials activities in Greenland resources industry in Greenland have been im- is still a major factor for the positive develop- portant and beneficial.After several years with ments. In cooperation with the Joint Committee mineral exploitation at a standstill, in 2002 pre- on Mineral Resources in Greenland, the Green- parations were carried out to open the gold mine land government and the Danish government at Nalunaq in South Greenland. Moreover, there is manage the mineral resources activities in agree- still great interest in Greenland's oil and gas po- ment and with mutual respect.The Bureau of tential. In 2002, a licensing round offshore West Minerals and Petroleum and the research institu- Greenland gave a new exploration and exploita- tions the Geological Survey of Denmark and tion licence to EnCana Corporation in coopera- Greenland and the National Environmental Re- tion with Nuna Oil A/S. search Institute will continue their close cooperation on targeted initiatives to establish sus- One of the Greenland government's primary pri- tainable development of raw materials activities orities is to establish a strong industry for the together with a high level of protection for the exploitation of Greenland's natural resources, environment. beneficial to economic growth and employment. Thus, it is still very important that Greenland and The Annual Report 2002 from the Bureau of Denmark work together to ensure the establish- Minerals and Petroleum illustrates that significant ment of this industry. interest remains from international industry to exploit Greenland's natural resources.This The Bureau of Minerals and Petroleum is the interest applies to minerals, hydrocarbons, and natural centre for Greenland's initiatives to estab- the large resources of clean ice and water in lish sustainable exploitation of the natural resour- Greenland. ces. In 2002, and for the fifth consecutive year, the Bureau of Minerals and Petroleum under the The Annual Report also illustrates that good Greenland Home Rule was responsible for the cooperation between authorities, industry and management of raw material activities in Green- research institutions is an important factor for land. Developments during this five-year period success. I sincerely hope that this cooperation have demonstrated that the collective decision will continue and that it will be developed further of the Greenland Home Rule and the Danish to the benefit of Greenland. government to transfer the management of mineral resources activities to Greenland has been beneficial.

Member of the Greenland government Minister of Business Finn Karlsen The Joint Committee on Mineral Resources in Greenland

In June 2002 the Joint Committee consisted of the following members.

Chair: Christian Mejdahl, MP (Venstre, Denmark's Liberal Party) Greenlandic members: Johan Lund Olsen Simon Olsen (Vice Chair) Mikael Petersen Jakob Sivertsen Mogens Kleist

Danish members: Helge Mortensen (Vice Chair) Jørgen Winther Aase D. Madsen Kirsten Touborg Kaj Ikast

The following officials from Greenland and Denmark took part in committee work as delegates: The mineral resources system for Greenland estab- Søren Hald Møller/Solja I Olavsstovu, lishes joint Danish-Greenlandic political responsibility Greenland Home Rule for raw materials activities in Greenland.This means Hans J. Høyer, Department of Environment and Nature that Greenland and Denmark have joint authority to Michael Dithmer, make decisions regarding principal investments in raw the Danish Ministry of Economic and Business Affairs materials activities. Furthermore, the Danish govern- Kirsten Trolle, the Prime Minister's Office ment and the Greenland government have agreed on the distribution of any profits from mineral resources During 2002 two Joint Committee meetings were held, exploitation. both in Greenland. Less complex cases, such as e.g. ap- The Joint Committee on Mineral Resources in Green- plications for new licences and area expansions and land has been set up as a political forum in which politi- transfers, are processed between meetings by the Joint cians from Greenland and Denmark can bring up cen- Committee's Chair and Vice Chairs. tral issues regarding raw materials activities for debate. The Bureau of Minerals and Petroleum under the Greenland Home Rule, administers the mineral resources system for Greenland and is the responsible authority for case processing in connection with mineral resources activities. The more detailed provisions pertaining to the Mineral Resources System for Greenland have been laid down in the Greenland Home Rule Act and in the Mineral Resources Act. The Joint Committee on Mineral Resources in Green- land - also called the Joint Committee - consists of five politically appointed members from the Greenland Par- liament and the Danish Parliament. In addition, a Chair is appointed for periods of four years by the Queen of Denmark, following joint nomination by the Danish government and the Greenland government.The tasks of the Joint Committee are to monitor developments in mineral resources activities and to submit its recom- mendations to the Danish and Greenlandic govern- ments on e.g. issues about the granting of licences for preliminary surveys and for exploration. The Bureau of Minerals and Petroleum

Objectives and tasks of the Bureau of Minerals and Petroleum The Bureau of Minerals and Petroleum under the Greenland Home Rule is responsible for the management of mineral resources activities in Greenland.The Bureau of Minerals and Petroleum aims at ensuring pro- fessional promotion of the raw materials potential in Greenland to the international mining industry.

One of the Bureau's main tasks is the day-to-day administration of licences for prospecting, exploration, and exploitation of mineral resources.The Bureau of Mine- rals and Petroleum is responsible for all case processing and is the only authority the mining industry needs to contact in order to receive necessary licences. This ensures efficient case processing for raw materials activities.

Mineral resources as a primary industry

Greenland aims at making mineral resources one of its primary industries. Developments within raw materials activities must therefore be in dialogue with the people of Greenland. As a consequence, the Bureau of Minerals and Petroleum is striving to establish a clear and com- prehensible framework for raw materials activities via a number of information activities, in order to encourage a successful working relationship between the mining industry and the public.

Start-up and promotion

The Bureau of Minerals and Petroleum contributes to the financing and implementation of a number of projects which can provide new knowledge about Green- land's mineral potential. In this way, the authorities are attempting to sharpen private enterprise interest in exploration activities in Greenland.The Bureau engages in determined efforts to promote Greenland's raw materials potential through participation in international trade fairs and exhibitions, and through direct marketing initiatives aimed at selected oil and mining companies.The Bureau's English website, moreover, is an important means of communicating full and relevant information to the mining industry.

External partners

The Bureau of Minerals and Petroleum cooperates on the administration of raw materials activities with e.g. the Geological Survey of Denmark and Greenland, the The licence agreement with EnCana Corporation was signed by National Environmental Research Institute of Denmark, Jonathan Motzfeldt, Premier of the Greenland government, in Nuuk and the Danish Energy Authority. Also the state-owned on 8 October 2002. oil company Nuna Oil A/S is an important partner.

3 Hydrocarbon licences Open-door areas

Exploration and exploitation licences are granted for As opposed to licensing-round areas, in areas covered specific areas on the basis of licensing rounds, in which by the so-called open-door procedure, companies may companies compete for the licence within a given time apply for licences on a continuous basis.The summer limit.Within other areas an open-door policy applies months are the only time when processing of licence permitting companies to apply on a continuous basis. applications for open-door areas is closed down. In West Greenland the offshore areas between 60°N Nunaoil A/S, equally owned by the Greenland Home and 63°N and between 68°N and 71°N (except for Rule and Danish state-owned oil company DONG areas covered by the KANUMAS licence), and the A/S, takes part in active licences as a sleeping partner land areas on Disko and Nuussuaq are covered by the in the exploration phase.This means that Nunaoil A/S open-door procedure. Jameson Land in East Green- does not share the costs of exploration. land is likewise covered by the open-door procedure. In these areas little is known of the oil potential and Furthermore, prospecting licences have been granted seismicdata coverage is limited. Especially favourable li- to a number of oil companies and seismic firms. cence terms have been established for exploration in these areas in order to increase interest in the areas. Hydrocarbons...

Identification of large potential hydrocarbon traps in West Greenland and collecting of seabed samples

Amongst other things, oil companies use estimated (minimum) sizes of possible hydrocarbon traps to assess whether an area is worth exploring.The size depends on many factors in the calculation of the trap's volume. In 2002 and 2003 the Bureau of Minerals and Petroleum and the Geological Survey of Denmark and Greenland have therefore been completing a project to map large potential hydrocarbon traps offshore central West Greenland in order to em- phasise key areas of the new Hydrocarbon Strategy.

Moreover, another project is under preparation to find evidence of the existence of hydrocarbons in offshore West Greenland via the use of seabed samples. Older sediments will be sam- pled for this project in the summer of 2003. Samples will be determined for their age, ana- Baffin Bugt lysed for possible hydrocarbon content, and will be combined with other data from the area

in order to establish knowledge about strata, their age, and possible hydrocarbon seepages in

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Lady In 2002 the most important activity within the hydrocarbons area was a licensing round and Franklin Basin Atammik Hecla SC subsequent granting of a new exploration and exploitation licence. High Fylla s a ig B H t SC a i Davis v a r a t Strait Ungava Forkastningszoneg S n s Basin i U v

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S D On the basis of a strategy from 1999 for future exploration for oil and gas and new know- . ledge from seismic data etc., the Bureau of Minerals and Petroleum recommended that a li- S Saglek censing round be held for offshore West Greenland in 2002.The recommendation was appro- Basin ved by the Joint Committee in February 2002, and the decision to have a licensing round in 2002 was finally adopted by the Greenland government and the Danish government (the Mini- Labrador Hav ster of Business and Economic Affairs) in April 2002.

The licensing round closed for applications on 16 July 2002 and subsequent negotiations re- 400 65 sulted in the granting of a 10-year exploration and exploitation licence to one of the world's 60 55 largest independent oil companies, Canadian EnCana Corporation (operator) with Nunaoil Seismiske projekter (surveys) DW02 survey (2200 km) A/S as sleeping partner in the exploration phase.The licence, which was signed by Jonathan (RD/TGS-NOPEC)

Motzfeldt, Premier, and the companies in question in Nuuk on 8 October 2002, applies to a GREEN02 survey (2402 km) designated offshore area of 3,985 km 2 about 200 km northwest of Nuuk. (NUNAOIL/TGS-NOPEC) New hydrocarbon strategy Correlation between under preparation West Greenland and East Canada Many of the objectives set out in the authorities' 1999 Hydrocarbon Strategy The objective of this project is to complete a correlation study of micro fossils have now been met.The new Strategy for and rocks (125–25 years old) in the continental shelf areas off the coast of objectives in the coming years will be fina- Baffin Island and Labrador in Canada, in the Nuussuaq basin and the areas lised and processed by the Joint Commit- around the Ikermiut-1 and Qulleq-1 well sites off the coast of West Greenland. tee in Spring 2003.The Strategy will first The purpose is to improve geological understanding of the basins in the north- accord priority to initiatives in areas with west Atlantic Ocean The study will be carried out by the Geological Survey of a substantial hydrocarbon potential, and Denmark and Greenland in cooperation with Geological Survey of Canada. about which there is important knowledge The project is financed by an appropriation from the Danish state's Energy about the geology and thorough know- Research Project Grant with additional funding from the Bureau of Minerals ledge about the environment.The Strategy and Petroleum, the Geological Survey of Denmark and Greenland, and Phillips will also assess whether there is need to Petroleum.The project was completed in 2002. adjust licence terms and procedures.

The 1999 strategy emphasised the New seismic surveys offshore West Greenland improvement of exploration prospects, including prospects for gathering seismic More than 6,500 km seismic data was gathered during the summer and autumn data and licensing rounds for offshore of 2002 from offshore areas west and southwest of Greenland. West Greenland.This is carried on as a primary objective in the new "Hydrocar- Green-Can 2002 In cooperation with the Bureau of Minerals and Petroleum, bon Strategy 2003". In the long term, sur- TGS-NOPEC gathered 1,711 km seismic data in the area around the Green- veys of exploration prospects in areas for landic–Canadian border south of the Qulleq-1 well site.This new data will form which there is still only limited data cover- the basis for more detailed surveys of hitherto unknown, deep sedimentary age must also be promoted.This includes basins, which were not discovered until more recent seismic surveys. the open-door and KANUMAS areas. Disko West 2002 Similarly,TGS-NOPEC and the Bureau of Minerals and Pe- troleum have gathered 2,200 km seismic data in the area west and northwest of the Disko and Nuussuaq peninsulas and into part of the Baffin Bay area. On Disko, and on the Nuussuaq and Svartenhuk peninsulas oil seepages in old well Normalforkastning 74 sites and on the surface of the land have been discovered, and surveys of the Reversforkastning

Efterforskningsboringer offshore area west of the peninsulas carried out via satellite indicate possible

Ny tilladelse tildelt oil seepages on the sea's surface. EnCana Corporation og Nunaoil A/S 72 GREEN 2002 In cooperation with Nunaoil,TGS-NOPEC has moreover gathered 2,402 km seismic data in the northern open-door offshore area from west of Sisimiut to west of the Nuussuaq peninsular.As in the Disko West 2002 Nuussuaq 70 project, this data has been gathered with the view to discerning possible

Disko hydrocarbon deposits and seepages, which e.g. have been indicated from satellite surveys. Nuussuaq Basin Grønland 68 Kap Farvel 2002 Finally,TGS-NOPEC and the Bureau of Minerals and Petro- leum have gathered 282 km seismic data in the area immediately southwest of Kap Farvel.This project primarily aims at gaining more knowledge about the

66 southern extension of the Greenland continental shelf.

Pilot project: Mapping and analysis k 64 Nuuk of the continental separation between

62 Greenland and Canada

In recent years, seismic data acquisition has shown that even newer models of the earth's crust and the development of basins need to be revised. Our under- 60 standing of the basin development and structure formation is of great impor- tance for the assessment of prospects for the area, as sedimentations of poten-

0 km tial hydrocarbon and reservoir-forming rocks are determined by regional basin 45 50 developments.The purpose of this project is thus to carry out preliminary )/indsamlede linier i 2002: work to map and analyse basin formations and structures in the earth's crust at GRC02 survey (1711 km) (RD/TGS-NOPEC) the continental separation between Greenland and Canada, especially between

KF02 survey (282 km) the Labrador Ocean and Baffin Bay and assessment of exploration prospects in (RD/TGS-NOPEC) and around possible deep-lying, older sedimentary basins in West Greenland. ...Hydrocarbons

Continental shelf project UNCLOS 76

The Bureau of Minerals and Petroleum cooperates with other Danish and Greenlandic authorities and institutions on determination of Greenland's continental shelf with a view to possibly presenting claims to extend the economic zone in three areas (red arrows) around Greenland.

Article 76 in the UN Law of the Sea Convention:“Con- vention on the Law of the Sea”, also called UNCLOS 76, provides coastal states the opportunity of presenting claims for extending their economic zone to more than 200 nautical miles. Such claims rely on the extension of the natural continental margin and submerged ridges in continuation of the continental plate. Claims to extend the economic zone must be presented within ten years of ratification of the Convention of the Law of the Sea by the country presenting the claim. Denmark is expected to ratify the UNCLOS on behalf of the Realm in 2003.

Minerals... Greenland's minerals strategy The Minerals Group under the Bureau of Minerals and Petroleum is currently preparing an updated strategy for minerals.The Strategy will contain new initiatives in three main areas; geology, licence terms, and promotion.

Part of this work involves assessing the current rules (stan- dard terms) for minerals in order to ensure the principle that Greenland should be a competitive exploration area. Both large and small companies must be taken account of, the terms should remain relevant in fluctuating economic conditions, and the rules for exploration and extraction should be simple and easy to administrate.

The geological part of the Minerals Strategy is being prepared by the Geological Survey of Denmark and Greenland in association with the Bureau of Minerals and Petroleum. The objective for the geological part of the Strategy is to increase specific knowledge about types of mineralisation that, on the basis of current knowledge, show the greatest potential for initiating extraction activities.As part of this strategy, there will be focus on specific regions with particularly promising potential for deposits of mineral resources. New atlas of environmentally Cooperation with other authorities vulnerable areas and associations

In 2002, the National Environmental Research Institute, in co- Further to owners of rights' duty of preparedness, the public operation with the Bureau of Minerals and Petroleum, comple- authorities have established an emergency preparedness ted a mapping project with the purpose of identifying areas facility, which will also apply when risks of accidents arise, especially vulnerable to oil spills along the west coast - the co- ensuring quick and efficient response to potential accidents. astal stretch between Kap Farvel and 62°N.This mapping is a The emergency preparedness facility consists of the Police; continuation of the mapping completed in 2000, identifying vul- the Greenland Command; the Danish Maritime Authority; nerable areas along the west coast between 62°N and 68°N. It the Danish High Commission in Greenland; and the Bureau of is planned to extend the mapping to 71°N in 2003. Minerals and Petroleum.

The primary purpose is to establish an overview of biological Protection of the Arctic Marine Environment - PAME resources (bird and fish populations etc.), ancient monuments The Bureau of Minerals and Petroleum takes part in the so- and fishing and hunting interests vulnerable to possible called PAME cooperation on the protection of the arctic pollution. marine environment under the Arctic Council. PAME prepares guidelines for environmental impact assessment on a regular The projects were funded by the Bureau of Minerals and basis.The guidelines are recommended for use in connection Petroleum and the Danish Environmental Protection Agency. with oil exploration in Greenland:“Arctic Offshore Oil and The National Environmental Research Institute is responsible Gas Guidelines”.These guidelines were revised in 2002. for project management.Also participating were the Greenland In addition to the “Arctic Oil and Gas Guidelines” PAME is Nature Institute , the Geological Survey of Denmark and also working actively with assessments and amendments of Greenland, the Danish Metrological Institute, the University of guidelines regarding the “Regional Programme of Action for Copenhagen, the National Museum of Denmark, and a the Protection of the Arctic Marine Environment from Land- Canadian consultancy firm. based Activities”.

Nalunaq gold 7 Nalunaq gold Niobium and tantalum

In 2002, Nalunaq I/S was issued with a new two-year exten- Exploration for the metals niobium and tantalum continued in sion to their exploration licence for Kirkespirdalen in South- 2002 at the Sarfartoq carbonatite complex, 65 km south of west Greenland.With this, the licence is now in the 11th year. Kangerlussuaq in West Greenland.The Australian company In June 2002, Nalunaq I/S submitted the results of a feasibility New Millennium Resources N.L. has the exploration licence study and an environmental impact assessment (EIA) to docu- for the area. ment that Nalunaq deposits of gold in Kirkespirdalen are com- mercially viable, and that possible exploitation of the deposits The results of previous explorative drillings at the deposit in- will not have negative impacts on the environment. dicate an estimated resource of 35,000 tonnes, containing 11.3

per cent niobiumpentoxide (Nb2O5). In addition, it has been The feasibility study documented that, on the basis of the size estimated that the deposit could contain a further 100,000 of the current resource, it is not profitable to erect a com- tonnes Nb2O5 .The metals are located in the mineral pyro- plete reprocessing plant in Greenland. In order for such a chlore, and in order to achieve the best results in separating plant to be profitable in Greenland, the company must double the element from the pyrochlore, over the past two years the its current measured and indicated resources. Nalunaq I/S will company has been developing a new and more efficient chemi- therefore exploit the gold deposits by shipping the ore to an cal method for this process. Recently, the company confirmed existing reprocessing plant in Canada. that, in cooperation with the Applied Chemistry Department at Curtin University, and GRD Minproc, it had developed a In September, the company applied to the Bureau of Minerals process to separate niobium from the pyrochlore ore.The and Petroleum for a licence to ship the existing heaps of ore company is carrying on its work to refine the process. stored in the valley for reprocessing in Canada.The ore heaps amount to about 40,000 tonnes of ore, with an average quality This year's fieldwork lasted for three months. Before the start of 20 g/t gold. Reprocessing the ore in Canada will provide im- of the fieldwork season, the company made a massive invest- portant knowledge about gold processing, waste etc. as well as ment in field equipment and a drilling rig, now located at the information about any content of elements harmful to the Sarfartoq deposit.This year, New Millennium Resources com- environment in the processed gold ore (tailing). pleted radiometric surveys of the surface geology in the area, and on the basis of the clear correlation between radioactive In 2002, there has been a lot of exploration activity at the elements and niobium and tantalum, the company was able to Nalunaq gold deposits, and in the rest of the area under the prepare a detailed geological map using these radiometric licence.The exploration activities included excavation 577m surveys.The systematic mapping and collection of samples led of tunnels and 295m of raises, as well as trials of different to identification of two further areas with high contents of methods of mining.Thus, more than 3,600 m tunnels and niobium.Analyses of rock samples from these two areas gave a shafts have been excavated, and 15 km of core drillings have content of 38.8 per cent, and 40.0 per cent respectively of been carried out at the gold deposit. Nb2O5. Hyperspectral measurements Diamond exploration in Greenland

Hyperspectral measurements have previously been carried out at the end of 2002 in East Greenland in 2000 (projects MINEO and HyperGreen) with a view to mapping pollution from past mining operations Since the early 1990s, Greenland has been a target for com- in Mestersvig, and in order to investigate selected mineralised mercial diamond exploration, but the level of activity has fallen areas.Via funding from the Bureau of Minerals and Petroleum, since its peak in 1997.At that time, large parts of the ice-free hyperspectral measurements were also carried out in the Kan- west coast of Greenland from Qaqortoq to Disko Bugt (about gerlussuaq area in West Greenland in summer 2002. (Hyper- 60,000 km2) were covered by exploration licences, primarily Green).The objective of these surveys is to use hyperspectral aimed at diamonds.At the end of 2002, licences for diamond measurements to explore for possible kimberlites containing exploration covered only 6,500 km2 of the triangle between diamonds.The hyperspectral measurements being processed Maniitsoq, Sisimiut, and Kangerlussuaq.An important part of in 2002 in West Greenland are expected to be completed in the explanation is without doubt the recession in the mineral spring 2003. sector in the late 1990s.

The hyperspectral measurements and other geophysical data So far, there is evidence of about 600 potential diamond locati- will be used in research, including characterising the geo- ons in Greenland, all situated in the area southeast of Maniit- logical environments, and identifying and characterising rock soq, and in the area just north of Sukkertoppen Iskappe.The complexes and ore provinces. Interpretation of the data is an majority (95 %) are micro-diamonds (longest side less than 0.5 integrated part of the general geological interpretation of the mm, and valueless). geology of Greenland, and localising mineralisations. During the past decade, private exploration companies have created a large amount of data, all reflecting the diamond potential of different areas.These data have been submitted to the Bureau of Minerals and Petroleum in the annual activity reports. GEUS has compiled all the companies' data from exploration to date on a GIS platform, and this will be available in a GEUS report from early 2003. Ornamental stone and industrial minerals

Over the past two years, mapping has been carried out in order to investigate the possibilities of finding ornamental stone in Greenland.This mapping has provided knowledge about areas where there may be opportunities to mine ornamental stone.The project will continue in 2003.

Ornamental stone is rocks that can be mined in large blocks without fractures, and with a colour and/or structure that makes it suitable for covering buildings or floors. In the con- text of Greenland, there are several factors that make ornamental stone especially interesting. Firstly, the price of the blocks of stone, that would have to be exported, is high enough to bear the costs of transport to the market - typically between DKK 2,000 and DKK 10,000 per m 3. Secondly, mining ornamental stone involves only limited investment, and finally, there is a good chance that production could take place near settlements, and therefore there are opportunities for local jobs. Examples of ornamentalstone from Greenland appear in pictures throughout this report.

Industrial minerals comprise a wide range of minerals where a concentrate of the mineral is used in industrial processes.An example from Greenland is cryolite. Following cessation of cryolite production in Ivittuut, there has only been limited exploration for industrial minerals in Greenland.Activities include exploration for phosphorus in the mid 1980s in West Green- land, exploration for graphite and olivine during the 1990s, and exploration for garnet sand during the past two years.

South Greenland near Narsaq seems particularly promising for localising minerals with properties of financial interest, for example the special metal zirconium. ...Minerals

9 Ice and wate

The Exports of Ice and Water Act

On 1 July 2001, the Greenland Parliament Act on ex- ploiting ice and water for export entered into force. The Exports of Ice and Water Act has the important objective of promoting commercial exploitation of Greenland's ice and water resources.

In line with the Mineral Resources Act, the Exports of Ice and Water Act has been prepared as a legislative framework.The Act aims at all types of exports of ice and water, including exports of large amounts of water for other uses than, for example, drinking water in bottles.The Act does not cover exploitation of ice and water for use in Greenland, for example public water supply and hydroelectric power.

However, legally, politically, and organisationally, the Exports of Ice and Water Act is conpagesably different from the Mineral Resources Act.While oil and minerals are covered by joint authority between Denmark and Greenland, exports of ice and water are solely the responsibility of Greenland. Licences are adapted to the specific circumstances of the project on the basis of a model licence containing all terms, including provisions regarding royalties.

The Bureau of Minerals and Petroleum Authorities is the coordinating authority within the administration of the Greenland government.The Act is administered according to a "one-door" principle.Applicants only have to apply at one place.When processing applications, the Bureau of Minerals and Petroleum gathers the necessary licences from other authorities, including the Department for Environment and Nature, the Depart- ment for Housing and Infrastructure, and the municipal administrations and town councils. Following this, the Greenland government notifies the applicant of the final exploitation licence.

In 2002 the ice and water area became a project unit under the Bureau of Minerals and Petroleum with tem- porarily increased personnel resources.The objective of the project is knowledge-building for the area so that promotion initiatives can be directed at the private sector. Furthermore, the Exports of Ice and Water Act allows for laying down detailed rules for a certification scheme stating quality categories for the Greenlandic ice and water licenced as commercial goods for export. er

Exclusive licences

Parties from Greenland, Denmark, and Canada have expressed interest in the new Act. In 2001 the Greenland government announced an exclusive 20-year licence for a defined area for a Greenland-owned company, Greenland Ice Cap Production ApS. This company had previously exported raw ice from Greenland.

In March 2002, Greenland Ice Cap Productions ApS entered into a distribution agreement with a Canadian company, Premium Glacier Inc. Since entering into the agreement, the Canadian company has worked to develop new products based on supplies from Greenland Ice Cap Productions ApS. Premium Glacier Inc. has completed a number of market trials in North America in order to identify taste and water quality levels. In November 2002, the Canadian company completed a production test of a vodka product that is to be the driving force for a range of alcohol products. 4,500 bottles were produced and sent to potential distributors. The first commercial production is expected in January 2003. At the same time, Premium Glacier Inc. received so many enquiries regarding water, that a plan is expected to be prepared in early 2003 with a view to producing bottled water.

In 2002 the Greenland government issued a licence to the ESKI Greenland A/S company to export mineral water from the Lyngmark spring at Qeqertarsuaq/ Disko.The licence is for a limited period, and for a limited amount of water, in that the purpose of the licence is primarily to allow for production trials of an alcohol product based on mineral water from Greenland.

11 Information - domestic an

Local activities Ujarassiorit - the hunt for minerals

Work by the Bureau of Minerals and Petroleum to involve Ujarassiorit is a mineral-hunt competition where everyone in the population and use local knowledge in order to promote Greenland can submit samples of rocks they have found in the knowledge and stimulate interest in minerals, rocks, and countryside for closer examination by Greenland Resources exploration for minerals, is carried out at several levels.The A/S. Ujarassiorit started in 1989 and it has now become a Ujarassiorit programme (Greenlandic for "go and look for permanent tradition in Greenland.This is a unique project rocks") initiative is now the basis for a great many of the with no comparison anywhere in the world. Interest in the members of the Greenland stone club (Grønlands Stenklub). mineral hunt is increasing, and in 2002 more than 1,000 rock The club was established two years ago and now boasts more samples were submitted.The last time more than 1,000 sam- than 170 members. In summer 2002 the club held an 8-day ples were submitted was in 1993.The continuing increase in prospector course in Ivittuut. interest is partly due to doubling the first and second prizes, and a better and faster service for the mineral hunters.

Again this year the samples submitted range from West Greenland, as far north as Inglefield Land and down to Narsaq in the south, and from the Tasiilaq and Ittoqqoortormiut area in the east. Of the 1,030 rock samples submitted, 275 have been chemical analysed in Canada, and the winners of the mineral hunt have been selected by the Prize Committee partly on the basis of these analyses.

The Prize Committee is composed of geologists from the Bu- reau of Minerals and Petroleum, the Geological Survey of Denmark and Greenland, and Greenland Resources A/S. The Committee judges the samples for prizes totalling DKK 175,000.An investment fund under 'Grønlandsbanken' has again decided to double the first and second prizes, and Greenland Resources A/S increased these further by DKK 5,000.

12 New finds for the year - d international Ujarassiorit 2002

The best rock sample for the year is a banded iron ore with the mineral hematite.This was found at Nunatakassak, about 25 km northeast of the Naajat International promotion settlement in the Upernavik municipality.

of raw materials The two second prizes were found at Maalutu in Nuuk fjord and northeast of Qasigiannguit.The sample from The main objectives for the mineral resources area include the Maalutu area contains iron and copper and is most attracting capital and technology, in both the long and widespread on coastal beaches.This sample is an exam- short terms, for a wide spectrum of investments in raw ple of the fact that, even in busy areas, such as around materials operations to promote and increase mineral Nuuk fjord, it is possible to find new mineral locations. resources activities in Greenland. The sample from near Qasigiannguit is made up of al- tered volcanic rock, amphibolite, with an above normal Attracting international venture capital for exploration and content of gold. Evidence of gold has been found before exploitation requires that the terms offered are competi- in this area, but not as significant as this sample, which tive with terms from other countries. Such competition in contains just over 1/2 g gold per tonne. a global market is not without complications. Many countries are very dependent on mining and/or the oil industry, and they are constantly forced to maintain these Participation in mineral resources industries, often through tax and other public incentives. Information for the mining industry is therefore a key trade shows concept. Promoting Greenland's raw materials potential to the industry is partly through direct visits to companies, In 2002, the Bureau of Minerals and Petroleum took partly through attending international trade fairs and con- part in the following marketing events: ferences, and partly through printed and electronic media. • British Columbia and Yukon Chamber of Mines: In cooperation with the Geological Survey of Denmark Cordilleran Roundup,Vancouver, Canada, and Greenland, the Bureau of Minerals and Petroleum pub- 21 – 25 January. lishes the MINEX and Ghexis newsletters, respectively • Prospectors and Developers Association of Canada aimed at the minerals and oil industries.These are (PDAC): International Convention and Trade Show, published two to three times each year.A news platform To ronto, Canada, 10 – 13.March. has also been set up on the Internet at MINEX on-line and • American Association of Petroleum Geologists GHEXIS on-line. (AAPG):Annual Convention, Houston,Texas,USA, 11 – 13 March. In 2002 the first issues of two new series were published. • Opening meeting for the licensing round regarding These were developed by the Geological Survey of hydrocarbons; 11 April in Copenhagen and 15 April Denmark and Greenland for the international audience in Houston. with a view to marketing raw materials prospects in • Direct marketing visits to a number of the world's Greenland.These series are the magazine entitled largest oil companies. "Geology and Ore" (one issue) and the data sheets "Fact Sheet" (three issues). Greenland took part in these events with a common exhibit booth where the Bureau of Minerals and Petroleum explained the applications procedure and rules; the Geological Survey of Denmark and Greenland presented the geological potential of minerals and hydrocarbons; Nuna Oil A/S presented the commercial conditions for oil exploration; while Greenland Resources A/S told about the capacity in the Greenlandic service sector. Selected publications

During 2001-2002, the Bureau of Minerals and Petroleum pub- T. F. D. Nielsen 2002: Palaeogene intrusions and magmatic com- lished a number of publications with its cooperation partners. plexes in East Greenland, 66 to 75º N, GEUS Rapport 2002/113, Other publications of relevance for the raw materials area in 249 pages. Greenland are available via the relevant websites for the Bureau of Minerals and Petroleum and the Geological Survey of Den- H. K. Olsen, L. Lorentzen, O. Rendal. 2001: Mining in the Arctic. mark and Greenland, as well as the library at the Bureau of Mi- Proceedings of the Sixth International Symposium on Mining in the nerals and Petroleum. Arctic,A.A.Balkema, Råstofdirektoratet, 175 pages.

S.A.S. Pedersen,T.Dahl-Jensen, H. Jepsen, L.M. Larsen, G.K. Pedersen, Annual reports, legislation, etc. T. Nielsen,A.K. Pedersen & W.Weng. 2001: Fjeldskred ved Paatuut. Undersøgelse af fjeldskred som var årsag til flodbølge den 21. Råstofdirektoratet, 2002: Annual Report 2001. Råstofdirektoratet, november 2000 ved sydkysten af Nuussuaq,Vestgrønland.(in Fællesrådet vedrørende Mineralske Råstoffer i Grønland, Nuuk, Danish), 2001/99, 47 pages. 42 pages. (In Greenlandic, Danish and English) T. Preuss & F.Dalhoff. 2001: Qulleq-1 (6354/4-1): petrography of GEUS 2002: Annual Report 2001, GEUS – Danmarks og Grønlands selected sidewall cores. GEUS Rapport 2001/33, 14 pages. Geologiske Undersøgelse, 16 pages (in Danish and English). T. Preuss, G. Dam & F.Dalhoff 2001: Qulleq-1 (6354/4-1): sidewall Grønlands Hjemmestyre. 2001: Landstingslov nr. 7 af 31. maj 2001 core description. GEUS Rapport 2001/4, 31 pages. om udnyttelse af is og vand med henblik på eksport (’Is- og vandeksportloven’). Offentliggørelse af landstingslov,10 pages (in T.C .R. Pulvertaft & J.G. Larsen. 2002: Note on the sub-basalt sur- Danish). face in the hinterland of the Nuussuaq Basin, central West Greenland. Contribution to the SNF 2002 project "Neogene uplift, erosion and redeposition in West Greenland". 2002/39, 15 pages Geology and exploration R. Rasmussen & T.D. Jensen. 2001: Seismic data processing of data P. Appel 2001: De ældste sten - det ældste liv.Temanummer af from the NuussuaqSeis 2000 survey. EFP-Project NuussuaqSeis Geologi - Nyt fra GEUS 1/2002, 12 pages. 2000: structure and hydrocarbon potential of the Nuussuaq Basin: acquisition and interpretation of high-resolution multi-channel seismic J.A. Chalmers, U. Gregersen, F.Dalhoff, H. Nøhr-Hansen, J.A. Rasmussen data. GEUS Rapport 2001/90, 30 pages. & E. Sheldon, 2001: Stratigraphy, seismic sequences and depositi- onal evolution of the Paleocene - Eocene Succession, offshore T. M. Rasmussen, L.Thorning, R.W.Stemp, M. S. Jørgensen & F.Schjøth. southern West Greenland. GEUS Rapport 2001/103; 286 pages. 2001: AEM Greenland 1994-1998 - summary report, GEUS Rapport 2001/58, 46 pages + CD-rom. N. Henriksen & A. K. Higgins 2001: Foldebjergene i Nordøstgrøn- land Temanummer af Geologi - Nyt fra GEUS 2/2001, 32 pages. Råstofdirektoratet 2001-2002: Mining Annual Review: Greenland, Mining Journal. A. K. Higgins, K. Secher & M. Sønderholm (red.) 2002: Review of Greenland activities 2001. GEUS Bulletin 191, 2002, 161 pages. K. Secher 2001: The Pd + Pt dispersion in noritic and undifferen- tiated mafic rocks of the Archaean craton east of Maniitsoq, K. Higgins & K. Secher (red.) 2001: Review of Greenland activities southern West Greenland. 2001/123, 22 pages. 2000. GEUS Bulletin 189, 2001, 131 pages. K. Secher & J. Burchardt 2001: Et kobberværk i Grønland - pionér- P. Japsen, J. Bonow, K.E. Klint & F.K.Jensen 2002: Neogene uplift, virksomhed i ødemarken 1904-15. Fabrik og Bolig 2001/2, 3-34. erosion and resedimentation in West Greenland. Field report summer 2002. GEUS Rapport 2002/71, 58 pages. K. Secher, H. Stendal & L.Thorning. 2002: Grønlands mineralske råstoffer - Nyt materiale til markedsføring; 2002/45, 63 pages. P. Kalvig, C. Knudsen & T.V.Rasmussen. 2002: Potentialer for facade- sten og skærver i Grønland.Afrapportering af felt- og laboratorie- A. Steenfelt 2001: Geochemical atlas of Greenland - West and undersøgelser 2001. 2002/11, 101 pages. South Greenland. GEUS Rapport 2001/46, 39 pages + CD-rom.

C. Marcussen, N. Skaarup & J.A. Chalmers, 2002: EFP Project A. Steenfelt. 2002: Exploration targets outlined by the geochemi- NuussuaqSeis 2000 – Final report: Structure and hydrocarbon cal Atlas of West and South Greenland, Explore Newsletter 116, potential of the Nuussuaq Basin: acquisition and interpreta- 1-3 & 17-19. tion of high-resolution multichannel seismic data. GEUS Rapport 2002/33. 63 pages. L. Stemmerik. 2001: Sen palæozoisk palæoklima og palæogeo- grafi i det nordatlantiske område. (GEUS Rapport 2001/94, T. F. D. Nielsen 2001: The Palladium potential of the Skaergaard 11 pages. intrusion, South-East Greenland. GEUS Rapport 2001/23, 39 pages. H. Stendal et al. 2001: The Palaeoproterozoic Kangerluluk gold- The environment and society copper mineralization (South-East Greenland): Pd and Nd iso- topic constraints on its timing and genesis, Mineralium Deposita P. J ohansen, G.Asmund, C. M. Glahder, P.Aastrup & K. Secher. 2001: 36, page 177-188. Minedrift og miljø i Grønland.Tema-rapport fra DMU 38/2001, 56 pages. H. Stendal & K. Secher 2002: Gold mineralisation and gold potential in South Greenland, Geology and Ore No 1, 12 pages. L.S. Lennert 2002: Environmental regulation of offshore petroleum activities in Greenland., Specialeafhandling, Centre for Sørensen, H. (red.) 2001: The Ilímaussaq complex, South Green- Energy, Petroleum and Mineral Law and Policy ved University of Dun- land: status of mineralogical research with new results. Geology dee, Skotland. of Greenland Survey Bulletin 190, 167 pages. N. Mikkelsen & T.Ingerslev (red.) 2002: Ilulissat Icefjord, Nomination J.B. Sørensen & P.Kalvig. 2002: Garnet sand in Greenland: for inclusion in the World Heritage List, GEUS, 136 pages. Examples from Tuttoqqortooq,Tasiilaq area and Sisimiut area. 2002/12, 25 pages. A. Steenfelt. 2001: En vurdering af de geokemiske forhold i de grønlandske byers vandressourceoplande i relation til indfly- B.Thomassen & J.D. Krebs. 2001: Palaeogene gold- and silver- delse på kvaliteten af råvandet. GEUS Rapport 2001/116, 78 pages bearing epithermal veins at Amdrup Fjord, southern East Greenland. 2001/133, 83 pages.

B.Thomassen, J.D. Krebs & P.R.Dawes 2002: Qaanaaq 2001: Mineral Leaflets and data sheets exploration in the Olrik Fjord _ Kap Alexander region, North- Råstofdirektoratet og Grønlands Stenklub. 2001: Gemstones from West Greenland. 2002/86, 72 pages. Greenland. Grønlandit.

J.A.M. van Gool et al 2002:The Nagssugtoqidian Orogen of West Råstofdirektoratet og Grønlands Stenklub. 2001: Gemstones from Greenland: tectonic evolution and regional correlations from Greenland. Nuummit. a West Greenland perspective.Canadian Jour. Earth Sciences 39, page 665-686.. Råstofdirektoratet og Grønlands Stenklub. 2001: Gemstones from Greenland. Tugtupit. Minex News 2001-2002: Engelsksproget nyhedsbrev til mine- industrien.Danmarks og Grønlands Geologiske Undersøgelse/ Råstofdirektoratet og Grønlands Stenklub. 2002: Gemstones from Råstofdirektoratet, Nr. 19–23 Greenland. Calcedon.

Ghexis Newsletter 2001-2002: Engelsksproget nyhedsbrev til olie- Råstofdirektoratet og Grønlands Stenklub. 2002: Gemstones from industrien.Danmarks og Grønlands Geologiske Undersøgelse/ Greenland. Rubin. Råstofdirektoratet, Nr. 19-21 Grønlands Stenklub 2001: En forening for steninteresserede i Grønland.Kort information og tilmeldingsblanket.

K. Secher 2002: Early mining in South Greenland, Fact Sheet No 2, 2 pages.

K. Secher 2002: Deposits of speciality metals in South Greenland, Fact Sheet No 3, 2 pages.

H. Stendal & K. Secher 2002: Gold mineralisation and gold potential in South Greenland, Fact Sheet No 1, 2 pages.

GEUS, 2002: Catalogue of Greenland publications and data. Update November 2002, 60 pages.

The annual Christmas message from the Bureau of Minerals and Petroleum: "Engineer Wirenfeldt from the graphite mine at Amitsoq on a skiing trip in the South Greenland "Kirkespirdalen" just after Christmas 1920.The workers at the graphite mine did not know that 80 years later their favourite recreation areas would become the centre of new mining activity around the gold deposit "Nalunaq".

15 Colophon Annual Report for Mineral Resources Activities in Greenland 2002 © The Bureau of Minerals and Petroleum, September 2003

Published by the Bureau of Minerals and Petroleum and the Joint Committee on Mineral Resources in Greenland

P. O. box 930, DK-3900 Nuuk, Greenland Tel: (+299) 346800. Fax: (+299) 324302 www.bmp.gl; [email protected]

Edited by the Bureau of Minerals and Petroleum in cooperation with the Geological Survey of Denmark and Greenland Graphics:The Geological Survey of Denmark and Greenland

This publication is published in Greenlandic, Danish and English

Nulanaq 2002

Sarfartoq 2002

Hyper-Green 2002

16 Map of licences 1 January 2003 Example of map of licences in Greenland.The map is update every 14 days on the first and sixteenth of the month on the Bureau of Minerals and Petroleum website www.bmp.gl and it can be printed from here. ISSN: 1399-2058