BUSINESS OPPORTUNITIES IN PROJECT OVERVIEW 2016 / 2017 2 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

GREENLAND BUSINESS AND DEVELOPMENT PROJECT OVERVIEW 2016

Published by the Arctic Cluster of Raw Materials (ACRM) in collaboration with the Confederation of Danish Industry (DI), November 2016

di.dk/english

acrm.dk

Prepared by

Up Front Communication ApS, Managing Director Hans Bak UP Front COMMUNICATION APS

Up-North ApS, Managing Director Martin Schjøtz-Christensen

Edited by Niels Tanderup Kristensen Foto: Hans Bak, Ivar Silis, Royal Arctic m.fl. Print: Kailow Graphic A/S ISBN 978-87-7144-099-7 200.11.2016 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 3

FOREWORD

Today, the Arctic region is experiencing an unprecedented level of interdependence with a number of growing interrelated challenges to the local, regional and global order. At the local level the lives of ingenious people, who have inhabited the Arctic of thousands of years are experiencing increasing opportunities for unlocking the vast economic po- tential through natural resources, shipping and tourism but at the same time face major challenges to their traditional livelihoods and cultures. At the regional level, the Arctic states and other international actors are increasingly engaging in the region making it both a venue for cooperation and competition over economic and security interests.

The dynamics at both of these levels are unfolding at the backdrop of major global devel- opments, where climate change is having a particularly strong impact on the vulnerable region. While the global temperature increase is allowing the Arctic new economic op- portunities through new Sea ways, tourism and access to resources, climate changes are both impacting the melting of permafrost and ice caps as well as being increased through feedback loops in the Arctic.

This report takes its departure in the arctic mineral extraction industry and highlights the current prospects and developments in one arctic state: Greenland. It showcases some key facts about Greenland’s administration and legislation as well as operational insights. But most importantly, it gives you an extract of the main investment opportuni- ties in 2016/2017 that are found in Greenland’s mineral-rich underground.

The report is developed by the Arctic Cluster of Raw Materials (ACRM). ACRM is an EU accredited cluster of excellence comprising of Danish and Greenlandic enterprises. ACRM provides company profiles and industry information on Greenland in all phases of the mining life cycle.

To learn more about ACRM, please check our webpage at www.acrm.dk

We hope you will enjoy the report.

Niels Tanderup Kristensen Director, ACRM 4 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 5

CONTENTS

6 A Nationless area in the Arctic 9 New Arctic shipping routes 10 The Arctic Circle and Greenland

13 OPERATING IN GREENLAND 15 Greenland at a glance

16 MINERALS (AND HYDROCARBONS) 17 The public administration 20 Mining projects 20 Existing and potential mining projects in Greenland 22 ¶ LNS / LNS Greenland A/S and LNS Greenland Gems A/S 24 ¶ Hudson Resources Inc. 26 ¶ Ironbark Zinc Ltd. 28 ¶ Rimbal Pty Ltd. / TANBREEZ Mining Greenland A/S 30 ¶ Greenland Minerals and Energy Ltd. / Greenland Minerals and Energy A/S 32 ¶ General Nice Development Ltd. 34 ¶ North American Nickel 35 ¶ ARC (Arctic Resources)

37 INFRASTRUCTURAL DEVELOPMENT PROJECTS 38 Collaboration and investments 39 Selected infrastructure projects in key figures 39 Mining projects 39 Existing and potential mining projects in Greenland 40 ¶ Sikuki – Harbour 41 ¶ Nuuk ( A/S) 42 ¶ Airport (Kalaallit Airports A/S) 43 ¶ Airport (Kalaallit Airports A/S) 44 ¶ Tasiilaq Airport 45 ¶ Airport 46 ¶ – upkeep, new port and road to 47 ¶ Development strategy for Nuuk – Arctic Capital

49 HYDROPOWER AND CLEAN ENERGY 50 Hydro plants in Greenland

51 KEY ORGANISATIONS

53 OUTLOOK

54 SOURCES

55 ACRM MEMBER COMPANIES 6 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

A NATIONLESS AREA IN THE ARCTIC

The Arctic covers an area of about 14.5 million km2 of The 1982 United Nations Convention on the Law of which some parts are currently outside existing terri- the Sea (UNCLOS), however, entitles states to extend torial boundaries. The Arctic states (Canada, Russia, their territorial demands if they can prove that their Norway, the United States and the ) continental shelf reaches beyond 200 nautical miles. are all working to extend their territorial rights in the This will grant them an exclusive right to exploit North. natural resources on and below the seabed. Exclusive fishing rights are not part of UNCLOS. The efforts are rooted in a wish to establish rules for shipping in the area and to benefit from the raw ma- Danish submissions to UNCLOS terial deposits that may be found there. The latter is, The Kingdom of has submitted three par- however, currently of less significance, partly because tial submissions relating to Greenland to the Com- the raw materials located outside current territorial mission in 2012, 2013 and 2014. On 15 December, boundaries are difficult to access, and partly because 2014, the third partial submission – regarding the it is assessed that 80 per cent of the Arctic raw ma- area north of Greenland – was submitted cover- terial deposits are found within boundaries that have ing an area of 895,541 km2. The two previous par- already been established. tial submissions for Greenland concerned the area (about 114,929 km2) south of Greenland from June Exclusive economic zone 2012 and the area (about 61,913 km2) north-east of All states are currently allowed to establish an exclu- Greenland from November 2013. sive economic zone 200 nautical miles off their coast- line. Within this zone, they have the exclusive right to explore and exploit the natural resources in the sea, on the seabed and subsoil, and to any economic opportunities that may arise. The states are also per- mitted to enforce environmental jurisdiction in their zone. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 7

Existing boundaries Nationless area Lomonosov Ridge

Source Nordregio

Alaska U.S.

Russia

Canada

North Pole

Greenland

Norway

Iceland Finland Sweden Faroe Islands

Nationless area in the Arctic 8 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

North West Passage North East Passage Central Arctic shipping route

North Pole

New Arctic shipping routes BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 9

NEW ARCTIC SHIPPING ROUTES

New shipping routes are gradually opening up as the The North East Passage is particularly interesting sea ice in the Arctic region retreats. This will signify- from a European perspective. A trip from Rotterdam cantly reduce sailing times between Asia and Europe/ to Yokohama north of Russia is only at 8,500 km, America. Since 90 per cent of international trade is or 12,000 km shorter than through the Suez Canal. shipped by sea, new and shorter shipping routes will The trip from Rotterdam to Vancouver north of Rus- have an enormous impact on global trade. With the sia is 12,500 km, or 3,500 km shorter than through Arctic shipping routes, the shipping industry will be the Panama Canal. The North West Passage is open able to reduce its exposure to many of the challeng- for shipping roughly every seven summers, but is ex- es it is faced with today. These include bottlenecks pected to be navigable every second summer from in congested waters around the Suez Canal, the Pan- 2050. The route across the Arctic Ocean is not yet ama Canal and the Strait of Malacca, and the safety open for shipping, but navigability is expected to in- problems related to piracy. On the other hand, new crease gradually so that by 2050 the area will be open challenges appear in relation to crews and equipment during four months of the summer. This could poten- that must be able to deal with harsh weather condi- tially make a hub for transport between West tions and drifting icebergs – even in the summer. America/Asia and Europe/East America.

Three shipping routes Extreme conditions The Arctic region basically offers three shipping Shipping in the northern regions, however, is not routes: without challenges, particularly in relation to unpre- dictable weather conditions. Storms, icebergs and °° The North East Passage north of Russia between extreme temperatures are just some of the circum- Europe and Asia/West America stances that both equipment and crews must be able °° The North West Passage north of Canada to handle. This means that shipping in the area is between East America and Asia/West America highly demanding in terms of safety. One considera- °° The Central Arctic shipping route across the tion is the vulnerable Arctic environment and another North Pole that gives access to Europe and East is the fact that an accident in Arctic regions may have America from Asia/West America. fatal consequences for the crew since it may take sev- eral days for help to reach the position. 10 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

THE ARCTIC CIRCLE AND GREENLAND

The Arctic is currently going through major changes Infrastructure and is increasingly attracting international attention. Greenland is an example of a frontier Arctic region Climate changes combined with technological pro- with limited mining infrastructure and challenging gress present new challenges and opportunities for physical circumstances, yet it has a quite well devel- the Arctic and its population. The recent ten year pe- oped infrastructure compared to many other Arctic riod has been the warmest ever recorded in the Arc- states and regions and is experiencing a significant tic, and the region is expected to have ice-free sum- increase in mining activity. mers within the next 30-40 years. Beyond existing and prospective petroleum resources, deposits in the Licenses Arctic of other mineral resources are substantial by For instance, the number of licenses issued increased any standards. Yet, many known reserves of minerals from 17 in 2002 to 121 in 2016. In short, Greenland’s are not exploited because they are found in areas to extractive industry is a fine mining jurisdiction with which access is poor or very difficult. favorable geology, a pro-mining population and gov- ernment that recognize the mineral resource industry White ocean to provide important future income and jobs, no mi- Looking at the primary mining areas in Greenland, it is nority land rights issues and a government take that a “White Ocean” of potential. It is not that Greenland is internationally competitive has not been mined before. The extractive industry in Greenland has been a part of the island’s economy Main projects since the 1850s, with mining of cryolite, lead, olivine In the following, we go a step deeper and analyse the and gold. most promising mineral projects in Greenland as well as the main infrastructure development. Each project Greenland has major potential in the known geologic is described in the same way so it is easy to capture occurrences along the coastline. What is under the the key figures. is however largely unknown. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 11

Valdez Alaska U.S. Chukotka

Yukon Russia

Alaska North Slope, Chukchi Sea Beaufort Sea, & Arctic National Wildlife Refuge Mackenzie Delta and Valley Canada Sakha

North West Territories

Nunavut Taimyr

Krasnoyarsk

Yamalo- Nenets Urengoi Oil fields in Pechora & Yamal Megaproject Nunavik (Quebec) Greenland Nenets

Western Greenland Barents Sea Shtockman Labrador Snøhvit Komi Norway

Narsaq Iceland Finland

Faroe Islands Sweden

Primary mining areas Largest mining areas Oil and gas production Potential oil and gas reserves 1a

Mining and oil activities in the Arctic Source Nordregio 2

3 12 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 13

OPERATING IN GREENLAND

On a global comparison, Greenland presents a stable development opportunities in Greenland. Clearly, political and legislative system with a general low risk some structural and infrastructural challenges are business environment on par with other developed present, but so is the country’s drive towards solv- Western and Nordic countries. The challenges of a ing them – an endeavour based on industrial devel- lightly populated vast country in an Arctic and Sub- opment within minerals, infrastructure and housing arctic environment are naturally present, not unlike development, hydropower and green technology, as conditions found in regions of e.g. Canada, Alaska, well as growth in established industries (fishing and Russia or Norway. As indicated in the GREENLAND tourism) and more. And an endeavour that will re- BENCHMARKING REPORT 2016, Greenland gener- quire local and inbound investments alike and create ally scores well on several principal macroeconomic opportunities for a wide range of companies. and business environment performance indicators. Recognisable legislation Strong economy Legislatively, Greenland is comparable to the Nordic Greenland has seen a negative growth in gross do- countries, especially Denmark. Though not a member mestic product (GPD) in recent years (-1.1, 2012-14) of the EU since 1985, much of the legislative frame- and the economy foundation is still highly dependent work that applies to trade has been updated recently on the incomes from a single industry (fishing) and a (2014-2016) to closer match the legislative frame- yearly grant from Denmark. There are, however posi- work of Denmark and the EU. The basis is a two-court tive benchmarking factors that should be noted. The system with options for appeal on a shared responsi- general government gross debt is very low in Green- bility with the Supreme Court in Denmark. land, currently near 5 per cent of GDP. At a GDP around 11,200 million DKK, Greenland represents a Communications small economy, but also one that is well positioned The 4,600 km fibre optic cable running from New- to engage the global lending market. Benchmarked foundland to Iceland has since 2009 connected to against comparable nations, Greenland is less indebt- the capital of Nuuk and the southern city of Qaqor- ed by far. In terms of inflation, Greenland generally toq. Combined with almost 50 radio transmitting sta- scores well with an annual inflation of 1.4 per cent tions on the west coast and satellite connections for (July 2015), which is within the range of optimal pre- the eastern and the most northern regions, this links ferred national inflation rates. Greenland internally and to the rest of the world in terms of tele infrastructure. Unpopulated areas gen- On the move erally require iridium phones. Currently, there is only Perhaps Greenland has unfairly received somewhat one supplier of telecommunication/internet. Cell negative presumptions in terms of business and in- phones, internet and social media are widely used vestment climate, but serious companies looking for and common. new ventures and investment opportunities will do well to look past any bias when seeking growth and 14 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Air and sea based transportation inant in the business landscape. There are several Transportation to/from and within Greenland is ei- options to start or conduct business in Greenland – ther by air or sea. The population is spread around and even more are expected with amendments to the 44,087 km coastline, primarily living on the west the Companies Act due to be instated January 2017. coast. Larger cities have paved roads, but no cities In general, inbound companies can choose between are yet connected by such. Denmark, mainly Copen- setting up a subsidiary, a registered branch office, a hagen, and Iceland (Reykjavik) to some degree, serve representative office or a taxable entity. as hubs for international air traffic. Larger cities are reachable by plane; smaller settlements and remote Personal income tax in Greenland is not incremental locations by helicopter. International flights mainly related to earnings, but is at a flat-rate of either 42 connect to Kangerlussuaq (west) and to or 44 per cent depending on which of the four mu- (south). North Atlantic flights via Reykjavik also con- nicipalities the taxpayer is eligible in. Corporate tax is nect to and Constable point (east), Nuuk and generally 30 per cent plus a surcharge of 6 per cent, Ilulissat (west) and to Narsarsuaq. Goods are primari- except for license holders within the extractive indus- ly shipped via Denmark (currently Aalborg) with a few tries, where incentives policies offer an effective tax options via Canada and Iceland. Shipping patterns of 31.8 per cent. Greenland has a limited number of are however changing with a future, more globally fo- import duties, but no VAT system. cused strategy from the national shipping company. Harbour berth, depth and sea bunkering options vary, Open for business but generally services adhering to MARPOL stand- Greenlandic-based companies typically hold decisive ards are available. In total, there are 16 city ports and local know-how and the experience to solve a wide 60 smaller settlement harbours in conjunction with range of tasks – be it auditing or legal consulting 14 airports, seven heliports and 37 helistops. needs, services and supply, catering, transportation or construction. Many international companies have Friendly business environment local branch offices and numerous local companies The majority of large companies in Greenland are have strategic ties and/or affiliations to international either completely or partially state-owned. Privately partners, helping even smaller locally centred offices held small and medium sized companies are predom- to punch well above their weight. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 15

Greenland at a glance

Official name Kalaallit Nunaat (Greenland)

Capital Nuuk

Institutional system Parliamentary democracy (self-governing country within the Kingdom of Denmark)

Area 2,166,086 km2

Currency (DKK)

Official languages Kalaallisut (Greenlandic), Danish

Religion Evangelical Lutheran

Ethnic groups Born in Greenland – 89.3%, born outside – 10.7% (2016)

Population 56,186 (Aug. 2016)

Urban population 48,216 (Jan. 2015)

Source: 16 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

MINERALS (AND HYDROCARBONS)

Hydrocarbon focused operations are currently at was mined from the mid to late 19th century. Mining somewhat of an adjournment. A combination of de- in the 20th century produced greater quantities and clining crude oil prices and a challenging Arctic envi- included coal, marble, lead, zinc, silver and cryolite ronment seems to have stifled the offshore interest. (plus uranium related to research at the Risø Insti- In 2011, the most recent appraisal drilling was carried tute). In recent years olivin and gold have been quar- out by Capricorn (Cairn Energy) off the west coast, but ried. Notable mining endeavours include: Ivittuut/ the company did not strike commercial quantities. cryolite (1854-1987) 3,700,000 (t) ore; Qullisat/coal Though some stakeholders have farmed out or relin- (1924-1972) 570,000 (t); Mestersvig/lead and zinc quished their offshore licenses, several major oil and (1956-1963) 545,000 (t); Maarmorilik (Black An- gas companies still retain exploration fields in Green- gle)/lead, zinc and silver (1973-1990) 11,300,300 land. Proactive license policies have been instated by (t); Seqi/olivin (2005-2009) 1,200,000 (t); Nalunaq/ the government and seismic surveys are still pursued gold (2003-2013) 680,000 (t) - 11 (t) gold. off the coast of northeast Greenland. Call for tenders on licenses blocks and “open door” procedures for Mineral licenses certain areas are presented at two to three years’ As of 1 November 2016, six (exclusive) licenses are intervals going towards 2018. Land-based searches granted for mineral exploitation. Two of these rep- have seen additional attention with onshore licenses resent active operations, whereas the other four are granted in Jameson Land and a recently prepared either subject to further exploration/analysis by new Strategic Environmental Impact Assessment regard- stakeholders or put on standby due to feasibility ing Disko Island and the Peninsula. As of forecasts and market conditions. Almost 60 (exclu- 1 November 2016, 16 (exclusive) exploration and sive) licenses for mineral exploration are granted, to exploitation licenses are granted for hydrocarbons; which could be added numerous non-exclusive and two of these cover onshore areas. A similar number is small-scale license categories. While some are more seen for (non-exclusive) hydrocarbon licenses – how- or less dormant, others see serious investments into ever most of these non-exclusives are, if not renewed, exploration as operations move close towards an ap- due to expire in the 2016-18 period. plication for an exploitation license. Typically, license holder information is updated twice a month. A yearly Mining is not new in Greenland activity report is published by the Ministry of Mineral Although Greenland is not an established mining na- Resources, but it is advisable to attend related con- tion per se, the country is not unfamiliar with an active ferences/seminars and join relevant networks/mem- mining industry: Coal mining in Greenland dates back bership organisations to gain information on current as far as the late 18th century, while smaller quan- and projected activities. tities of graphite, copper, gold, silver and zirconium BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 17

The public administration

Previously and formally known as the Bureau of Min- Detailed information is available erals and Petroleum (BMP), the Greenlandic author- Online means are available to stakeholders seeking ity on natural resources (oil, gas and minerals) com- detailed geophysical information and data on Green- prises different entities under the Ministry of Mineral land’s mineral or hydrocarbon resources: Greenland Resources (MMR) and shares related responsibilities Mineral Resources Portal and Greenland National with the Ministry of Industry, Labour and Trade (MILT) Petroleum Data Repository, respectively. Although and the Ministry of Nature, Environment and Energy the scope of the enterprise between the Government (PANN). One might encounter references to the BMP of Greenland and the Geological Survey of Denmark in documents or rapports predating 2013, referring to and Greenland (GEUS) is at a shift with the expected the former administrative organisation. establishment of the Greenlandic institution of Geo- survey Kalaallit Nunaanni by January 2017, there is Representing a small administrative size, bottle- still a common partnership in promoting Greenland’s necks may ensue within periods of peak activity, but natural resources. GEUS represents further volumes the stages towards obtaining an exploratory permit of information for interested parties. or settling on an exploiting agreement reflect well regulated public sector principles known in western Regulation nations Activities in relation to Greenland’s natural resourc- es, both minerals and hydrocarbons, are highly regu- Strategy 2014 – 2018 lated. All significant activates must be reviewed and Currently, the Mineral License and Safety Authori- approved before any prospecting, exploration or ex- ty (MLSA) and the Environment Agency for Mineral ploitation can be initiated. List of fees and in-depth Resources Activities (EAMRA) both support the core information is accessible at the website Govmin.gl, obligations related to the responsibilities of the MMR. but the typical steps towards an operating business Typically, the specific legislative framework under- include obtaining an exploration license, reporting pinning the sector, including strategic and resource on field activities, reporting on geological findings marketing related efforts, is formed and revised and financial statements. Extensive and potentially through the MMR. Greenland’s oil and mineral strat- intrusive exploratory activities may even require an egy 2014 – 2018 is in effect at the moment. There is Environmental Impact Assessment report (EIA) fol- a vested focus on promoting the country’s natural re- lowed by a public hearing. Some distinctions apply to sources to the extractive industry, which includes se- the processes related to hydrocarbons and minerals. curing both a reasonable ROI for private parties and The focus will be on mineral related activities in the a fair government take - simultaneously making sure following paragraph. that regulations on environmental and social impacts follow international best practices. 18 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Social and Environmental Impact Assessments ority items within the IBA negotiations include: local The process from exploration to exploitation will in- content (recruitment of Greenlandic labour and en- volve both a Scoping Study, a pre-consultation, pub- gaging Greenlandic business); long-term capacity lic meetings, an EIA and a Social Impact Assessment building and knowledge transfer; on-site/in-country report (SIA). The reports need to provide a compre- processing, energy decisions and infrastructure; so- hensive outline of the project, opportunities, impacts cio-cultural values and traditions; as well as intern- and mitigating activities. Whilst license holders tend ships, training and education and decommissioning. to hire independent third-party consultancy to pre- pare the reports, the EIA and SIA are considered to A signed IBA predates the final political approval of be the licensee’s report. Draft reports will be studied plans for exploitation, development and closure/de- and reviewed by the appropriate government au- commissioning. No construction work (related to ex- thorities followed by a public hearing of at least eight ploitation) can be initiated before the final approval. weeks. Following this, the final reports and a White Paper, addressing questions brought up through the Small scale mining licenses are only granted to process, must be prepared and made available to the Greenlanders (five years’ permanent/taxable resi- public. General language requirements entail report- dents) and are usually limited in terms of scope and ing in Greenlandic, English and Danish. investment needs.

Impact Benefit Agreements Governing legislation, procedures/standard terms, Parallel to White Paper preparations, the Impact Ben- rules for fieldwork/reporting, guidelines for EIA (adm. efit Agreement (IBA) negotiations will commence. 2015) and SIA (adm. 2016) and more is available at The negotiations are conducted as three-party nego- the Govmin.gl website. tiation between the license holder/private company, the Government of Greenland/MILT and the appro- Signed IBAs are found under publications at the priate ministries and the municipality(ies). High pri- .gl website. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 19

Involvement of stakeholders throughout the process

START Scoping Study, collection of base­line data and draft Pre-consultation Terms of Reference (35 days) (project description)1 2

Submission of draft SIA and Terms application for of exploitation Reference 4license 3

Public Preparation consultation of (minimum White Paper eight5 weeks) 6

Impact Final SIA, Benefit White Paper and Agreement IBA negotiation 8(IBA) 7

§ 16 Decision exploitation license on political § 19, 43 and 86 approval approvals

9 10 END

The formal SIA process The Social Impact Assessment process-path towards final approval 20 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

MINING PROJECTS Existing and potential mining projects in Greenland

ARC and FBC Mining Exploitation license previously held by Black Angle Mining Maarmorilik Zinc and lead mine, operated by Greenex (1973 – 90) Former employment: Approx. 350 Status: Further exploration at formerly operating mine site Projected production of zinc in 2018

North American Nickel Nickel, copper, cobalt and PGE Exploration related employment: Approx. 40 Status: Highly active yearly exploration campaigns since 2011

LNS Greenland A/S & LNS Greenland Gems A/S Exploitation license previously held by True North Gems Greenland (TNGG) Aappaluttoq Ruby and pink sapphire Expected employment: Approx. 80 (Based on TNGG data 2010) Greenland Minerals and Energy Ltd. Exploration expenditure: Approx. 17.4 Kvanefjeld million USD (ibid) Capital cost: Approx. 25 million USD Rare Earth Elements (REE), uranium (ibid) and zinc Total operating cost: Approx. 108 Expected employment: million USD (ibid) Construction: Approx. 2,000 Status: Operation expected to Operation: Approx. 800 commence winter 2016/17 Exploration expenditure: Approx. 75 million USD Capital cost: Approx. 832 million USD Status: Formal application for exploi­ tation license expected late 2016 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 21

Ironbark Zinc Ltd.

Citronen Fjord Hudson Resources Inc. Zinc and lead Naajat Expected employment: Construction: Approx. 300 Anorthosite Operation: Approx. 470 Expected employment: Exploration expenditure: Approx. 50 Construction: Approx. 20 million USD Operation: Approx. 60 Capital cost: Approx. 429.3 million USD Exploration expenditure: Approx. 30 Total operating cost: Approx. 3.43 billion million USD USD Capital cost: Approx. 25 million USD Status: Construction expected 2017 Status: Construction commenced 2016

General Nice Development Ltd. Exploitation license previously held by London Mining Greenland (LMG) ISUA Iron Expected employment: Construction: Approx. 3.300 (Based on LMG data 2010 – 12) Operation: Approx. 850 (Ibid) Capital cost: Approx. 2.35 billion USD (Ibid) Operating cost 46 USD/(t) at 15 Mtpa (Ibid) Status: Project on standby

TANBREEZ Mining Greenland A/S Kringlerne Tantalum, Niobium, Rare Earth Ele- ments (REE) and Zirconium Expected employment: Construction: Approx. 140 Operation: Approx. 80-350 ARC and FBC Mining Exploration expenditure: Approx. 45 Exploitation license previously held million USD by Angle Mining Status: Applied for exploitation licence March 2012. Negotiations are still Nalunaq ongoing Goldmine, operated by Crew Gold Corporation (2004-08) and by Arctic Mining 2010-13 Former employment: Approx. 60 Status: Further exploration at formerly operating mine site Initial small scale mining may be achievable in 2017 22 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

LNS / LNS Greenland A/S & LNS Greenland Gems A/S

Aappaluttoq Ruby and pink sapphire Expected employment: Approx. 80 (Based on TNGG data 2010) Exploration expenditure: Approx. 17.4 million USD (ibid) Capital cost: Approx. 25 million USD (ibid) Total operating cost: Approx. 108 million USD (ibid) Status: Operation expected to commence winter 2016/17

Aappaluttoq is Greenland’s first gem corundum ¶¶ Services required/business opportunities: mine. The area was geologically defined by Canadian °° Transport of goods and staff junior True North Gem (TNG) in 2005-2012. TNG’s °° Services to the camp operating company TNGG filed for bankruptcy 7 Sep- °° Provision of fuel tember 2016. The mine is built by LNSG who previ- °° Provision of goods and food ously partnered with TNGG. TNGG’s assets, exploita- °° Provision of technical services etc. tion license and other licenses have been transferred to LNSGG.Together with Greenland Venture A/S and ¶¶ Staff/jobs: The of Greenland, LNS secured the necessary °° Approx. 80 when fully operational after financing in order to finalize the infrastructure at the three years (14 – 20 of positions in Nuuk) mine and subsequently enable ruby and sapphire pro- °° Mining season expected to be 8 months/year duction. – year-round.

Gemstones as a commodity are set apart, even from the precious metals entering the jewellery indus- try. The business model and marketability depend on stone qualities, characters, carats and cutting/ polishing, more than pure yield. Tracking and docu- mentation of Greenlandic origin is planned in order to brand for market penetration and attest gems as ethically mined. Ruby and gemstone prices and sales are trending upwards, with India and China emerging as markets equivalent to U.S. market. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 23

Company: LNS Greenland A/S (LSNG) is a Greenlandic construction company. LNS Greenland Gems A/S (LNSGG) is a newly founded gemstone mining company. The sister companies LNSG and LNSGG are group companies under Norwegian LNS AS (Leonhard Nilsen & Sønner) specialised in tunneling and rock cavern as well as road construction and mining contracting in Arctic areas with limited infrastructure. LNS owns and operates among others the well-known Rana Iron Ore mine in central Norway plus several other mines. Shares are not publicly traded.

Website: www.lns.no

Board Chairman: Malvin Nilsen

CEO: Frode Michal Nilsen

LNS office: Strandland, Risøyhamn, Norway

Board Chairman LNSG & LNSGG: Gunnar Moe

Managing Directors LNSG & LNSGG Greenland: Finn K. Mortensen/Peter C. Madsen

LNSG & LNSGG office: Nuuk, Greenland

Exploitation licence: ‘2014/21’ – 2044. Granted 10 March 2014 / Approval 23 September 2014. Transferred from True North Gems Greenland (TNGG) to LNGG 3 October 2016.

Site: 17 km2 - Aappaluttoq – SW Greenland – Municipality:

Deposit & mine: Corundum (ruby - pink sapphire) – Small open pit (approx. 150mx200m)

Resource: 166,983 (t) with 339 (g/t) corundum (TNGG 2015)

Current estimated operation: 2015 – 2024 (incl. construction – expansion possible)

Status: Construction close to completion at mining site and facilities in Nuuk. Production to commence winter 2016/17.

Estimated exploration expenditure: 17.4 million USD Estimated total capital cost: 25 million USD Estimated total operating cost: 108 million USD Total estimated sales revenue: 573 million USD (resource and fiscal information: based on TNGG data 2010)

Other properties: 2014/45 (409km2) 24 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Hudson Resources Inc.

Naajat Anorthosite Expected employment: Construction: Approx. 20 Operation: Approx. 60 Exploration expenditure: Approx. 30 million USD Capital cost: Approx. 25 million USD Status: Construction commenced 2016

Hudson Resources has maintained interests in mine life in excess of 100 years and the business Greenland since 2002, exploring for diamonds, rare model rests upon three potential revenue streams earths and, more recently, industrial minerals in from one operation. Demand is upward trending with the form of anorthosite (calcium feldspar). The site Asia (China), the US and the EU representing primary offers the potential for developing a simple mining markets. Global production (2012) estimated at 10.8 operation similar to a rock quarry, with primary pro- billion USD. cessing/grinding on-site to produce feed product for use in making structural fiberglass. Finer milling off ¶¶ Services required/business opportunities: site has the potential to create higher value products °° Transport of goods and staff for the industrial minerals sector. A ten-year supply °° Services and construction to the camp agreement is signed with market-leading fiberglass and facilities producer Owens Corning. Hudson is working with the °° Provision of fuel European Investment Bank to provide debt financing. °° Provision of goods and food °° Provision of technical services etc. Three main industrial applications for the Naajat anorthosite have been identified by Hudson: Feed- ¶¶ Staff/jobs: stock to the high end fiberglass (E-glass) industry; °° Approx. 20 for construction and 60 once new source of alumina to supply aluminium smelters operational. and; new source of filler material (component in the °° Mining season expected to be nine months/ plastics and paints industries). The anorthosite at year, processing plant ten months/year. Naajat is rated very high for industrial use, contain- ing high content of aluminium (33 per cent max) and calcium (16 per cent max). The deposit may support BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 25

Company: Hudson Resources Inc. is a junior exploration and mining company focused on anorthosite (calcium feldspar) and Rare Earth Elements (REE). Shares trade on the TSX Venture Exchange [HUD].

Website: www.hudsonresources.ca

Board Chairman: John Hick.

President, Director: James Tuer.

Hudson Resources office: Vancouver, BC, Canada

Exploitation licence: ‘2015/39’ – 2045. Granted Sep. 11th 2015 / Approval 24 Sep- tember 2015

Site: 92 km2 - Naajat (White Mountain) – W Greenland – Municipality:

Deposit & mine: Anorthosite (calcium feldspar) – Small open pit (approx. 300mx400m)

Resource: 60 million (t)

Current estimated operation: 2015 – 2035 (incl. construction – expansion possible)

Status: Construction commenced (September 2016). Operation and shipment planed for 2017

Estimated exploration expenditure: 30 million USD Estimated total capital cost: 25 million USD Estimated total operating cost: Confidential Total estimated sales revenue: Confidential

Other properties: 2010/40 (92km2) (Sarfartoq/REE); 2013/01 (146km2); 2012/38 (N/A) 26 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Ironbark Zinc Ltd.

Citronen Fjord Zinc and lead Expected employment: Construction: Approx. 300 Operation: Approx. 470 Exploration expenditure: Approx. 50 million USD Capital cost: Approx. 429.3 million USD Total operating cost: Approx. 3.43 billion USD Status: Construction expected 2017

The remotely situated Citronen area presents one of ¶¶ Services required/business opportunities: the world’s largest undeveloped zinc-lead deposits. °° Transport of goods and staff Ironbark is proposing to develop three mining depos- °° Services and construction to the camp its within the area, with an on-site facility for crushing, and facilities grinding and flotation processing to produce mineral °° Provision of fuel concentrates of zinc and lead. Concentrates will be °° Provision of goods and food shipped off-site to Iceland or another northern Euro- °° Provision of technical services etc. pean port and subsequently to a third party smelter for refining. Glencore and Nyrstar are project share- ¶¶ Staff/jobs: holders and committed to 70 per cent offtake agree- °° Approx. 300 for construction and up to ments. MOU has been signed with China Nonferrous 470 once operational. regarding lump sum construction and commission- ing, with 70 per cent associated debt funding and 20 ¶¶ Mining season: per cent direct project investment. °° All year round °° Shipping window to area approx. mid July Zinc stock levels are declining with major producers to mid September. closing mines, why demand is forecasted to rise to- wards 2025, and price is projected an upward trend scenario, with both global markets and demand from China. Lead and zinc concentrates are traded on global market permitting annual negotiations bench- marking pricing amongst smelter, miners and metal markets. Zinc is the 4th most used metal globally. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 27

Company: Ironbark Zinc Ltd. is a junior resource company focused on development of major base metal mining projects (lead and zinc) in Greenland and Australia. Shares trade on the ASX Exchange [IBG].

Website: www.ironbark.gl

Board Chairman: Peter Bennetto

Managing Director: Jonathan C. Downes.

Ironbark Zinc office: Subiaco (Perth), WA, Australia

Exploration licence: ‘2007/02’ – 2016 via Bedford (No 3) Ltd. (Owned 100 per cent by Ironbark)

Site: 120 km2 - Tarsarneq (Citronen) – N Greenland – Municipality: N/A

Deposit & mine: Zinc; lead – Underground & Open pit

Resource: 70.8 million (t) at 5.7 per cent Zn+Pb

Current estimated operation: 2017 – 2033 (incl. construction – expansion possible)

Status: SIA and EIA hearings completed early 2016. IBA signed 23 September 2016 – final approval expected late 2016. Construction expected 2017

Estimated exploration expenditure: 50 million USD Estimated total capital cost: 429.3 million USD Estimated total operating cost: 3.42 billion USD Total estimated sales revenue: 5.56 billion USD

Other properties: 2007/31 (130km2); 2007/32 (122km2); 2007/33 (69 km2); 2010/47 (94 km2); 2011/28 (5 km2); ‘2011/33 (155 km2)’; 2016/22 (114 km2) 28 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Rimbal Pty Ltd. / TANBREEZ Mining Greenland A/S

Kringlerne Tantalum, Niobium, Rare Earth Ele- ments (REE) and Zirconium Expected employment: Construction: Approx. 140 Operation: Approx. 80-350 Exploration expenditure: Approx. 45 million USD Status: Applied for exploitation licence March 2012. Negotiations are still ongoing

The project represents a significant multi-element tantalum, rare earths, yttrium and even niobium. De- deposit including perhaps the largest REE and tan- mand for REE is expected to surpass current supply. talum deposit in the world. Tanbreez is proposing to Prices have settled since the 2010/11 bubble and are separate the ore into three saleable components prior trending up. to shipping. These are eudialyte (the source of the Ta, Nb, REE and Zr), arfvedsonite and feldspar. The com- ¶¶ Services required/ business opportunities pany is hoping to be able to sell 97 per cent of all that °° Transport of goods and staff is mined, potentially making this mine unique. Due to °° Services high costs in Greenland, further downstream process- °° Construction and operating camp and ing of the eudialyte will not be possible. At present, facilities the company is awaiting a pending agreement on the °° Provision of fuel/food and other goods exploitation license before it can finalise offtakes, fi- °° Technical nancing arrangements and service contracts. °° Recruitment °° Educational services Tantalum is very stable and used in alloys due to its resistance to corrosion as well as in capacitors in ¶¶ Staff/jobs for stage 1: electronic equipment. Niobium shares many proper- °° Approx. 140 in construction and 80 when ties and application purposes with Tantalum. Zirconi- operational, rising to 250 in stage 3 the 3.0 um is a light metal resistant to corrosion and is also m t/year option used in alloys, advanced ceramics and in the space °° A further 50-100 may be needed for industry. Tanbreez has spent considerable funds on downstream processing of other products research into downstream processing aimed at over- and administration of offshore processing coming perceived monopolies in commodities like facilities, marketing etc. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 29

Company: Tanbreez Mining Greenland A/S is a junior resource company wholly owned by Rimbal Pty Ltd, which is an Australian company owned by the Barnes Family Trust. The company is focused on a multi element deposit of Tantalum, Niobium, Rare Earth Elements (REE) and Zirconium in Greenland. Shares are not publicly traded.

Website: www.tanbreez.com.

Owner, Chief Geologist: Greg Barnes

Tanbreez Mining Greenland office: S Perth, WA, Australia & Nuuk, Greenland

Exploration licence: 2006/04

Site: 18 km2 – Killavaat Alannguat (Kringlerne) – S Greenland – Municipality:

Deposit & mine: Tantalum, Niobium, REE & Zirconium – Open pit

Resource: 4.8 billion (t)

Current estimated operation: Ten years (expansion possible)

Status: Applied for exploitation licence March 2012. SIA and EIA hearings completed late 2013. Negotiations on the application for a 0.5 million t/year operation are cur- rently ongoing (Oct. 2016). Long term plans of extension to 1.5 million t/year and 3.0 million t/year have as yet not been applied for.

Estimated exploration expenditure: 45 million USD Estimated total capital cost: Not disclosed Estimated total operating cost: Not disclosed Total estimated sales revenue: Not disclosed

Other properties: 2010/24 (44km2); 2007/45 (50km2) (Ivittuut) – both via Rimbal Pty Ltd 30 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Greenland Minerals and Energy Ltd. / Greenland Minerals and Energy A/S

Kvanefjeld Rare Earth Elements (REE), uranium and zinc Expected employment: Construction: Approx. 2,000 Operation: Approx. 800 Exploration expenditure: Approx. 75 million USD Capital cost: Approx. 832 million USD Status: Formal application for exploi­ tation license expected late 2016

The project represents a significant multielement The matter is subject to further political discussion deposit including perhaps the second largest REE following any application for uranium exploitation, deposit in the world, as well as significant uranium such as GME’s. Looking ahead, the uranium market and zinc deposits. Build-Own-Operate discussions is expected to grow significantly. China has a heavy for third party infrastructure financing are current- dominance on the current production and stock piling ly ongoing with the Government of Greenland and of REE, why the US, the EU and others may look for a major European multinational conglomerate that alternative suppliers for a strategic pipeline stream. specialises in power provision. As of 23 September REE are finding increased uses within green-techs 2016 Chinese Shenghe Resources Holding Ltd., has and consumer products. Demand for REE is expected agreed, through 99.99 per cent owned subsidiary Le to surpass current supply. Prices have settled since Shan Shenghe Rare Earth Co Ltd., to subscribe for the 2010/11 bubble and are trending up. 125 million ordinary shares in GME to take a 12.5 per cent holding, pending approval prior to 30 November ¶¶ Services required/business opportunities: 2016. °° Transport of goods and staff °° Services and construction to the camp The issue of uranium mining, Greenland’s previous and facilities zero-tolerance policy and the geopolitical aspects of °° Provision of fuel the resource involving the Danish government have °° Provision of goods and food been and are significant aspects when addressing this °° Provision of technical services etc. resource. Legislative agreements between Greenland and Denmark have been passed allowing Greenland ¶¶ Staff/jobs: to export uranium under international safeguard pro- °° Up to 2,000 jobs during construction tocols. Greenland has signed a parliament bill on the and up to 800 once operational safeguard of nuclear materials and export of uranium. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 31

Company: Greenland Minerals and Energy Ltd. [GGG] is a junior resource company, focused on Rare Earth Elements (REE), uranium and zinc in Greenland. Shares trade on the ASX Exchange [GGG]. Greenland Minerals and Energy A/S (GME) is the Greenlan- dic subsidiary of GGG.

Website: www.ggg.gl and www.gme.gl

Director, Board Chairman: Anthony Ho

Managing Director: John Mair

Greenland Minerals and Energy Ltd. office: Subiaco (Perth), WA, Australia

Greenland Minerals and Energy A/S office: Narsaq, Greenland

Exploration licence: 2010/02

Site: 80 km2 - Ilímaussaq (Kvanefjeld) – S Greenland – Municipality: Kujalleq.

Deposit & mine: REE, uranium, zinc – Open pit

Resource: 1 billion (t)

Current estimated operation: 2017 – 2056 (incl. construction etc. – expansion possible)

Status: SIA and EIA prehearings completed end 2015. Formal application for exploi­tation license expected late 2016.

Estimated exploration expenditure: 75 million USD (2012) Estimated total capital cost: 832 million USD Estimated total operating cost: Not disclosed Total estimated sales revenue: Not disclosed

Other properties: N/A 32 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

General Nice Development Ltd.

ISUA Iron Expected employment: Construction: Approx. 3.300 (Based on LMG data 2010 – 12) Operation: Approx. 850 (Ibid) Capital cost: Approx. 2.35 billion USD (Ibid) Operating cost 46 USD/(t) at 15 Mtpa (Ibid) Status: Project on standby

The project representing a major, large-scale, iron ore ¶¶ Services required/business opportunities: endeavour is currently on standby. Mining, process- °° Transport of goods and staff ing to slurry and pipeline to port facility was planned °° Services and construction to the camp in 2012, when London Mining Greenland applied for and facilities exploitation rights. Since the dismantlement of its °° Provision of fuel mother company (London Mining) and overtake from °° Provision of goods and food General Nice Development, the feasibility prospect °° Provision of technical services etc. has not supported commercial value of production under current iron ore market prices. ¶¶ Staff/jobs: °° Up to 3.300 jobs during construction With current iron pricing, the project should be viewed and up to 850 once operational as a long-term strategic investment from the General Nice Group. Iron ore has been in a case of oversupply and cost production lowering, but a rise in demand may also be in the horizon. Representing a serious investment, General Nice Group and investors will be on the lookout for solid upwards movements to solidify in iron ore prices before initiating operation expenditure at Isukasia. China still represents a ma- jor market for iron import and will likely look to secure sourcing for needed commodities including those for steel making. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 33

Company: General Nice Development is part of the General Nice Group which engages in three main businesses: mineral resource investment, minerals trading and real estate investment. Shares of group subsidiaries trade on related exchange venue.

Website: www.generalnice.com

Founder, Chairman: Cai Sui Xin. CEO, Executive Director: Yu Lau

General Nice Development Ltd. office: Sheung Wan, Hong Kong, China

Exploitation licence: 2013/31 - 2042 Granted 24 October 2013 (London Mining Greenland)

Site: 290 km2 – Isukasia – W Greenland – Municipality: Sermersooq

Deposit & mine: Iron – Open pit

Resource: 1,1 billion (t)

Current estimated operation: 15 – 20 years (incl. construction – expansion possible)

Status: Project on standby. Exploitation licenses granted to previous licensee; London Mining Greenland A/S, now owned by General Nice Development. Indirect transfer of license approved by the Government of Greenland, late 2014. IBA and final approval to be concluded.

Estimated total capital cost: 2.35 billion USD Estimated total operating cost: 46 USD/(t) at 15 Mtpa (resource and fiscal informa- tion: based on LMG data 2010 – 12)

Other properties: N/A 34 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

North American Nickel

Maniitsoq Nickel, copper, cobalt and PGE Exploration related employment: Approx. 40 Status: Highly active yearly exploration campaigns since 2011

North American Nickel have been highly active in Chairman: John Sabine. their Greenlandic exploration campaign since 2011, completing extensive airborne, ground and borehole CEO, Director: Keith Morrisson geophysical surveys as well as a large satellite-borne remote sensing survey and almost 30,000 meters of North American Nickel office: North Vancouver, BC, diamond drilling. Successful equity financing through Canada committed investment partners has provided a well-funded platform to support robust exploration Exploration licence: 2011/54 (2,689 km2), 2012/28 programs in Greenland. Nickel is closely tied to steel (296km2) and 2015/30 (N/A) demand with price fluctuating relative to global in- dustrial trends. Global demand has a strong correla- Site: Maniitsoq (2011/54 + 2012/28) – West Green- tion with China’s manufacturing industry. land – Municipality: Qeqqata

Nickel and copper Company: North American Nickel [NAN] is a junior Deposit: resource exploration and development company, focused on nickel, copper, cobalt and PGE in Green- Status: NAN has completed its sixth consecutive land and Canada. Shares trade on the TSX Venture year of exploration on the property and is focused Exchange [NAN]. The Sentient Group owns approxi- on providing size potentials and building tonnage mately 60.5 per cent of NAN. at several zoned deposits.

Website: www.northamericannickel.com Estimate exploration expenditure to date: 35 million USD BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 35

ARC (Arctic Resources)

Maarmorilik Zinc and lead mine, operated by Greenex (1973 – 90) Former employment: Approx. 350 Status: Further exploration at formerly operating mine site Projected production of zinc in 2018

Nalunaq Goldmine, operated by Crew Gold Corporation (2004-08) and by Arctic Mining 2010-13 Former employment: Approx. 60 Status: Further exploration at formerly operating mine site Initial small scale mining may be achievable in 2017

Nalunaq gold mine has produced around 340,000 ARC office: Reykjavik, Iceland and Luxembourg oz of gold and deposit shows very high grade gold mineralisation. Extensive existing underground de- Exploitation licence: 2003/05 (22 km2) and velopment has been carried out and an existing 2008/29 (52km2) underground processing plant is in place. Other in- frastructure includes a nine km long road and port Exploration licence: 2010/45 (102 km2) facility. The Maarmorilik Zinc District has produced a total of 11.2 Mt grading 12.6 per cent zinc and 4.1 per Site: Nalunaq gold mine (2003/05) – South Green- cent lead. With upcoming zinc mine closures globally, land – Municipality: Kujalleq and Maarmorilik zinc zinc price is expected to trend upwards. Current infra- district (2008/29 & 2010/45) – West Greenland - structure allows fast track to production and includes, Municipality: harbour, camp buildings, hangars and a six km long underground tunnel in Nunngarut Plateau. Deposits: Gold and zinc and lead

Through a joint-venture with FBC Min- Company: ARC is a junior resource company focus- Status: ing on exploitation of gold, zinc and lead in Green- ing, ARC has completed further exploration and land, at two previously operating mine sites. Shares resource identification at the two projects in 2015- are not publicly traded. 16. Initial small scale gold mining at Nalunaq may be achievable in 2017. Zinc production at Maar- Website: www.arctic-resources.com. morilik may commence in 2018. Technical updates available in Q4 2016. Managing Director: Eldur Olafsson 36 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 37

INFRASTRUCTURAL DEVELOPMENT PROJECTS

Infrastructure development in Greenland is a key is- fects of improved air-based transportation connect- sue. Focus is set on harbour facilities, airports and run- ing towns directly to international markets. The ben- way expansions, urban development, energy needs efits are tangible for a range of trade and commercial and building methodology as well as building mate- sectors. At the time of this report’s publication, there rials. Certain projects have been completed in recent is still much to be said and done regarding any new years e.g. Sisimiut’s new harbour facilities of 2013 airport in Greenland – however, as of July 2016, the while others are close to completion e.g. Sikuki-Nu- Government of Greenland established the company uk Harbour which is expected ready early/mid 2017. Kalaallit Airports A/S. The mandate of Kalaallit Air- Housing/building renovation and construction is on- ports is to undertake the needed technical and mar- going through both private and public contractors, ket-related studies and later to be part to negotiations with a strengthened focus on low maintenance and and agreements concerning investments and financ- inorganic materials. Urbanisation and a demographic ing regarding the potential airports and runways of shift towards larger towns play into the plans for de- Nuuk, Qaqortoq and Ilulissat. Currently, the company velopment. There is a netemigration from Greenland, Mittarfeqarfiit still runs and operates Greenland’s air- but a netinternalmigration from smaller settlements ports. to larger towns. In terms of transportation needs and tying the country together, harbours and airport nat- Natural advantages urally play a vital role. Harbour modernisation is cen- In relation to the mineral industry, the view that tral in Greenland, since advancements here support Greenland is isolated and logistically difficult in terms dominant sectors such as fishing and cargo shipping. of operating can be challenged by the fact that there Furthermore, harbour berth improvements are an im- are several natural advantages to the country’s layout portant aspect as they relate to ferries and especially and position: Greenland is centrally placed between cruise ships in Greenlandic waters. the European and North American markets; condi- tions and climate are generally not unlike Arctic and New airports Subarctic areas where successful mining is already Of the infrastructural advancements planned or pro- ongoing; shipping and port facility potential are also jected in Greenland, few – if any – are getting as much apt for many of Greenland’s deep fjords, providing attention as the proposed airports and runway exten- logistical benefits in terms of transportation. With sions, based on decision of 2 December shipping possibilities via the Northwest Passage - ini- 2015. Not only do the structures themselves present tially navigated by a commercial vessel in 2008 – the a sizeable engineering and construction assignment, access to Asia’s markets is also set to become much but great expectations are tied to the spill-over ef- more cost-efficient. 38 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Collaboration and investments

Public funding by the Greenlandic treasury alone Investment scenarios via private partners or/and is not an option if the wanted infrastructural devel- funds (e.g. the EU, pension or venture) are being opment projects are to be initiated and completed. looked into by the Government of Greenland as well Looking ahead, from 2017 to 2020, the Government as the municipalities. Investor cases may come to of Greenland is proposing a conservative approach in include not only airports and harbours, but also new terms of public spending. Hence, the call for invest- housing areas, renovation of current buildings, as well ments and viable financial models for ventures with as dorm rooms/colleges. investment partners is currently subject to much consideration. Public-Private-Partnerships (PPP), Strong business cases Public-Private-Cooperation (PPC) and similar mod- Due diligence efforts and a thorough breakdown of els have been presented by advisory parties at semi- potential investment schemes behind respective pro- nars in both and Nuuk. Such investment jects are to correlate with presentations of relevant models and partnerships are well established in e.g. investment opportunities and business cases. Hence, the UK and Denmark, and may – tweaked to suit lo- contract tenders, actual construction and potential cal conditions and legislative framework – provide the tenders for operation following these infrastructural necessary economic leverage to materialise some of projects could still be some time away. As such, 2017 the plans for new infrastructure. or parts of it may be a time of planning, negotiations, preparation and hopefully signed agreements. Private capital Private investors will look towards equity, revenue Procurement streams and certainty surrounding legislative frame- Small and medium sized Greenlandic based engi- work and agreed documents. Initially, the crux of the neering and construction companies will look towards matter will be the ability to present attractive and tenders including manageable sub-contracts and/or well managed business cases to capital investors partnerships with larger international partners. In- and operating companies, at the same time ensuring bound international contractors can do well in estab- that the public contractor is guaranteed a fulfilment lishing partnerships will local companies to get onsite of functional requirements. Risk management and know-how. Some public contract stipulations may well-balanced contractual agreements that satisfy all also necessitate a certain amount of local content in the involved shareholders will be at the centre of any workforce and/or business partnerships. successful and lasting venture towards the develop- ment of Greenlandic infrastructure through private investments. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 39

MININGSelected infrastructure PROJECTS projects in key figures Existing and potential mining projects in Greenland

Ilulissat Airport Estimated construction costs: 73 million DKK Currently anticipated run- way: 2,200 m in 2019

Ittoqqortoormiit Airport Estimated construction costs: 152 million DKK

Currently anticipated Kangerlussuaq runway: 650 m in late – runway upkeep, new 2018 port & road to Sisimiut Runway: 150 million DKK ATV road: 22 million DKK Harbour: 50 million DKK

Nuuk Airport Estimated construction costs: 1,297 million DKK Currently anticipated runway: 2,200 m in late 2018 Tasiilaq Airport Estimated construction Nuuk Harbour costs: 257 million DKK Estimated construction Currently anticipated costs: 59,2 million USD runway: 1,199 m in 2022 A total area of 47,320m2 with a terminal capacity of 3,290 TEU

Arctic capital Qaqortoq Airport 7,000 new homes Estimated construction costs: 681 million DKK Currently anticipated runway: 1,199 m in 2018

Source: Estimates for / / Qaqortoq Airport / Tasiilaq Airport & Ittoqqortoormiit Airport are based on the Transport Commission 2011 report (2010 price index). Further restrictions apply to baseline estimates. 40 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Sikuki – Nuuk Harbour

Nuuk Harbour Estimated construction costs: 59,2 million USD A total area of 47,320m2 with a terminal capacity of 3,290 TEU

The company Sikuki Nuuk Harbour A/S was founded The capital base is based on government funding, 23 December 2013. through equity and loans as well as external financ- ing, the latter (and primary) part via Pareto Securities The purpose was to construct, own, operate and de- investment Q1 2015. velop harbour areas in Nuuk and to perform related business activities. Prequalification proceedings were Board Chairman: Lars Erik Karlsson completed in 2014, with tender proceedings ending 31 October 2014 for a turnkey contract. Construction CEO: Pall Hermannsson commenced Q1 2015. New buildings and construc- tion include 310 m quay at 13 m of depth and 50 Total cost of construction: Approx. 59,2 million USD m at 8 m of depth. A total area of 47,320 m2 with a terminal capacity of 3,290 TEU and ability to receive Main construction contractor: and operate container vessels of up to approx. 2,500 Per Aarsleff Greenland ApS TEU. Adding to this is refrigerated/freezer storage of; 2 2 1,250 m warehouse and 1,200 m workshop build- Status: Expected close to completions by end of ing. As a new model for Greenlandic harbours, com- February 2017 – final details concluded during mercial use and access to some facilities from foreign summer 2017. vessels will entail ship dues and payments on services delivered. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 41

Nuuk Airport (Kalaallit Airports A/S)

Nuuk Airport Estimated construction costs: 1,297 million DKK Currently anticipated runway: 2,200 m in late 2018

The capital of Greenland may get a modernised air- Board Chairman: Leo Bruno Larsen port and an extension of the current 950 m runway, which only accommodates smaller propel based CEO: Jákup Sverri Fonsdal Kass (interim). fixed-winged aircrafts and helicopter traffic. Interna- Steffen Ulrich-Lynge (as of 1 December 2016) tional traffic to Nuuk is currently primarily serviced via a hub in either Kangerlussuaq (2,810 m runway) or Previous estimations on construction cost: 1,297 in Iceland. Although concerns are raised about reg- million DKK (2010-index! / Transport Commission ularity and discussions are ongoing about an exten- 2011) sion of current runway vs. construction at different- location, an international traffic connection to Nuuk Currently anticipated runway: 2,200 m (minimum) is well anticipated by travellers and businesses alike. in late 2018 / Cruise ship operators have remarked on the potential of Nuuk as transit hub, if airports planes are carried Status: Geo-testing, drilling and blasting have out to service international flights. Other serious in- commenced as part of initial survey, September vestments may follow suit – both in the tourism sector 2016. Studies concerning feasibility, construction and in other industries. As the administrative centre costs and investment partners/models are on­- of Greenland and home to the majority of the larger going as of late 2016. companies’ headquarters, Nuuk already sees a great deal of international business travellers. A direct in- ternational connection would be a boon to these as well as Nuuk, an emerging tourist destination. The fjords and backcountry of Nuuk offer potential for tourist related growth and currently the summer sea- sons have ample modern hotel capacity. 42 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Ilulissat Airport (Kalaallit Airports A/S)

Ilulissat Airport Estimated construction costs: 73 million DKK Currently anticipated runway: 2,200 m in 2019

The premier tourist destination of Ilulissat was the Board Chairman: Leo Bruno Larsen first to see geotechnical surveying in relation to the extension of the current 845 m runway. Today inter- CEO: Jákup Sverri Fonsdal Kass (interim). national traffic to Ilulissat is primarily serviced via hub Steffen Ulrich-Lynge (as of 1 December 2016) in either Kangerlussuaq or Iceland. Home to the UN- ESCO World Heritage site listed Icefjord, Ilulissat’s Previous estimations on construction cost: 73 magical sceneries have put the city on the forefront million DKK (2010-index! / Transport Commission when it comes to the allure of Greenland as a tourist 2011 – cost only related to extension to 1,199 m!) destination. Home to massive icebergs and award- ed hotels from where you can enjoy the scenery, the Currently anticipated runway: 2,200 m (minimum) town has seen a rise in incoming tourists to the point in 2019 / International airport where overnight capacity has very little vacancy in high seasons. With direct international flights, the Status: Geo-testing, drilling and blasting have town could further advance it’s already thriving tour- commenced as part of initial survey, September ism industry as well as provide further opportunities 2016. Studies concerning feasibility, construction for the well-developed fishing industry. Investments costs and investment partners/models are on- into added capacity are already ongoing from local going as of late 2016. operators – from expansion on situated hotels to new developments of luxury overnight facilities next to the fjord. A partnership between the municipality of Qaa- suitsup, the Greenlandic Government and Realdania is behind the aspiring project of Ilulissat’s coming Icefjord Centre – planned to open in 2020. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 43

Qaqortoq Airport (Kalaallit Airports A/S)

Qaqortoq Airport Estimated construction costs: 681 million DKK Currently anticipated runway: 1,199 m in 2018

Six km of road have already been laid down by the Board Chairman: Leo Bruno Larsen. municipality of Kujalleq in South Greenland, connect- ing the town of Qaqortoq to the placement of a future CEO: Jákup Sverri Fonsdal Kass (interim). potential airport. Since the final decision on any of Steffen Ulrich-Lynge (as of 1 December 2016) the airports has not yet been made, this road certain- ly speaks to the proactiveness and expectations of Previous estimations on construction cost: 681 the southern region. International traffic to Qaqortoq million DKK (2010-index! / Transport Commission is currently primarily serviced via hub in Narsarsuaq 2011). (1,830 m), connecting via ferries and helicopter. Qa- qortoq and the rest of southern Greenland is rich on Currently anticipated runway: 1,199 m (minimum) art, culture and Norse history and boast several ad- in 2018 / North Atlantic airport venture opportunities for visitors wishing to enjoy the lush mountains region. Old ruins and hot springs are Status: Geo-testing, drilling and blasting have among the regions attractions, as well the region be- commenced as part of initial survey, September ing home to both fishing industries, agriculture and 2016. Studies concerning feasibility, construction farmers - thus fittingly called the country’s food stor- costs and investment partners/models are on- age. Local hotels have been modernising and plans going as of late 2016. are on the ready for a boom in business. 44 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Tasiilaq Airport

Tasiilaq Airport Estimated construction costs: 257 million DKK Currently anticipated runway: 1,199 m in 2022

An airport in Tasiilaq is also one of the politically pri- Previous estimations on construction cost: 257 oritised airport projects, however this location is not million DKK (2010-index! / Transport Commission currently included in the scope of Kalaallit Airports 2011– cost related to 1,199 m gravel). A/S. Today, Tasiilaq is serviced internationally primar- ily via flights from either Kangerlussuaq or Iceland, Currently anticipated runway: 1,199 m (minimum) connecting to the settlement of Kulusuk (1,199 m/ in 2022/ North Atlantic airport gravel). From Kulusuk, Tasiilaq can be reached either by boat, helicopter or dogsled/snowmobile. Tasiilaq is Status: Initial weather and climate related technical the largest city on the east coast and presents visitors surveys are under way. Studies concerning feasi- with a dramatic roughed landscape and a less devel- bility, construction costs and investment partners/ oped feel as compared to the larger towns of the west models are ongoing as of late 2016. coast. Well-established outfitters and remote cabins combine to make the dramatic landscape accessi- ble for adventures. With close proximity to Iceland, Icelandic tourists have the option of adding an East Greenland trip to their itinerary and collaboration between Icelandic and local tour operators is set for further advancement. The current traffic structure creates a bottleneck for in/outbound travellers to/ from Tasiilaq and an airport would open up a range of possibilities in terms of volume and investment. Tasiilaq-based operators are currently reporting up- ward trending revenues. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 45

Ittoqqortoormiit Airport

Ittoqqortoormiit Airport Estimated construction costs: 152 million DKK Currently anticipated runway: 650 m in late 2018

An airport in Ittoqqortoormiit is also part of the po- Previous estimations on construction cost: 152 litically prioritised airport projects, but like Tasiilaq million DKK (2010-index! / Transport Commission it is not currently included in the scope by Kalaallit 2011 – cost related to 1,199 m gravel) Airports A/S. Ittoqqortoormiit is about as remote as it goes for Greenlandic towns. Currently serviced Currently anticipated runway: 650 m (minimum) in internationally via flights from either Kulusuk or Ice- late 2018 / Regional airport land, connecting to the landing strip at Nerlerit Inaat also known as Constable Point (1,000 m/gravel). Status: Initial weather and climate related From Nerlerit Inaat, one reaches Ittoqqortoormiit technical surveys are under way. either by boat, helicopter or dogsled/snowmobile. Situated next to the world’s largest and deepest mul- ti-branched fjord system, the town gives visitors to As part of the new parliament coalition between the an experience few other places can match in terms parties of Siumut, IA and Partii Naleraq, the 2016- of seclusion and uniqueness. Expedition vessels and 2018 coalition-agreement also directs focus at the cruise ships may call to port, but generally the scene potential for gravel runways in Qeqertasuaq, Qa- is dominated by nature, wildlife and possibilities for sigiannguit, , Narsaq and Nanortalik. adventure. Tourism as a larger business is not estab- lished, however there is a tourist office and willing op- erators. Like Tasiilaq, the current traffic system can create bottlenecks to/from Ittoqqortoormiit and ex- peditions to the National Park may bypass the town completely setting out directly from Nerlerit Inaat. A direct flight from Iceland would be more cost-effec- tive and open the town to tourist related investments. 46 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Kangerlussuaq – runway upkeep, new port and road to Sisimiut

Kangerlussuaq – runway upkeep, new port and road to Sisimiut Runway: 150 million DKK ATV road: 22 million DKK Harbour: 50 million DKK

Kangerlussuaq serves as the main hub for redirecting A new and modern port in Kangerlussuaq is also and handling incoming international traffic in Green- being discussed. Plans for a port have been agreed land. In itself, Kangerlussuaq has plenty to offer vis- upon on a regional level but still need to be discussed itors and the local hotel is currently renovating and further on a parliamentary level in order to secure modernising. Road access to mountains, fjords and government funding. A larger port, with 10 m depth the icecap is among the settlement’s attractions. and ability to accommodate vessels up to around 230 , originally build as an Ameri- m in connection with Kangerlussuaq would work in can airbase in 1941, is well situated for air traffic in conjunction with the international airport and be par- terms of weather and high regularity. With the ongo- ticular favourable in terms of transferring cruise ship ing discussions new international airports in Green- guests. The port is planned to be situated about 10 land, there is some uncertainty regarding the exact km further down the fjord than the current facilities, future of Kangerlussuaq airport – the area, however, hence part of the plan involves road construction. To- holds plenty of potential and several projects are be- tal construction cost is estimated at approximately 50 ing brought up. Forward mineral projects are situated million DKK. in . A long-standing wanted item on the regional itin- Kangerlussuaq airport’s runway is nearing the need erary has been a road connecting Kangerlussuaq of an overhaul due to permafrost damages. This re- to Greenland’s second largest town of Sisimiut. To- lates to about 300 m of the 2,810 m runway, however tal construction cost of a passable two-lane gravel there are currently no problems regarding a full and road on the 160 km expanse has been estimated to safe use of the airport. The exact cost of the overhaul be somewhere between 300 and 500 million DKK. has been the matter of some discussion, ranging from The municipality of Qeqqata has instigated a light up to 2 billion DKK for a completely new tarmac to approach to this sizeable undertaking by funding an a 2011-estimate around 150 million DKK from the ATV (all-terrain vehicle) track following the outline of Transport Commission. In relation to the scope of the proposed road. The ATV road construction will be the project, a survey of the extent of needed repairs completed in tempi through 2016 and 2017. Estimat- has been ongoing in 2016. In Kangerlussuaq and the ed cost of construction is around 22 million DKK. municipality of Qeqqata, there is a natural vested in- terest in keeping Kangerlussuaq airport and runway. BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 47

Development strategy for Nuuk – Arctic Capital

Arctic capital 7,000 new homes

Nuuk is at the core of much of Greenland’s policymak- alone, the strategy sets out a goal for constructing ing, central administration, businesses, education- 7,000 new homes by 2030. Plans are looking to- al institutions, healthcare, cultural scene and large wards connecting a string of islands south of Nuuk to event venue. The Arctic capital’s strategy is not a pro- the town and thus expanding the layout of buildable ject as such, but still bears mentioning here due to areas considerably. the scale, scope and potential development projects. The ambitious forward-looking strategy for the capital The strategy sets goals for business development of Nuuk was presented in June 2016 by the munici- within key sectors such as fishery, raw materials, pality of Sermersooq. A strategy including plans for tourism and general commercial growth. Business serious commercial, recreational and residential de- areas have been identified, creating a commercial velopment. Looking towards 2030, the strategy envi- band with attractive sites for companies. sions and lays out the basis of being home to 30,000 inhabitants – almost twice the number of citizens International funding possibilities to animate and today. Such plans naturally call for attention towards underpin the strategy are currently being explored. qualified prospects, land allotments, surveying, foun- Advisory partners are working together with the mu- dation and general land development including road, nicipality of Sermersooq to bring the vision to life in sewer and energy grids. And certainly also planning, a sustainable fashion where public partners see that construction and investments. Nuuk’s hydropower functional requirements are met and investments op- plant at Buksefjorden, currently able to produce 45 portunities are presented in attractive partnerships. MW, might not house a fourth turbine. Surging more power for Nuuk may be possible by adding a second As the title hints, the strategy aims at Nuuk being hydropower plant on the same stream, effectively de- not only a centre of Greenland, but also on the world riving power from the same water stream twice. Pow- agenda as a leading town in the Arctic providing a er transmission lines installed from the current plant range of opportunities for business growth and a to Nuuk can handle up to 100 MW. thriving population.

Nuuk harbour and a potential new international air- As of November 2016, the municipality of Sermer- port is unsurprisingly at the heart of the connectivity sooq has budgeted 240 million DKK towards con- of Nuuk’s future, as well as innovation, sustainable struction and building expenditure in 2017. A larger energy and buildings that are aesthetically pleasing part of which is directed towards the capital. in harmony with the surrounding nature. In housing 48 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 49

HYDROPOWER AND CLEAN ENERGY

Energy and utility needs of the future is another im- pany is installing charging stations for electric cars as portant matter in the onward development of Green- part of a focus on sustainable fuelled transportation. land. This relates to urban expansion and town growth Efforts are also ongoing in East and South Greenland models, to the vital fishing industry, to the mineral in order to surge levels of hydro plant turbine capaci- sector and to business development in general. ty, by increasing water flow and resources access.

Hydropower Shared energy Greenland is ahead of the curb when it comes to clean Active research is going into identifying further wa- energy. Currently around 62 per cent of the country’s ter resources for hydropower, in particular how they electricity needs is covered by hydropower. This is a may correlate with attractive areas for mineral oper- result of proactive and forward-thinking investments, ations. Such surveys must be based on several years, starting already in the 1990s. several of the larger even centuries’ of data, and as such the current most towns are serviced, through the country’s five hydro forward mineral project plans in Greenland are still plants however settlements and smaller towns are based on fossil fuel generators. Asiaq – Greenland still relying on oil based generators. Solutions for dis- Survey an independent, but nationally owned com- placement of oil and fuel are actively being pursued, pany is currently working toward mapping resources with investigations into smaller mixed source energy and accumulating further data. solutions. A combination of sun and wind power is be- ing piloted along with options for geothermal energy. Towards 90 per cent Renewable energy in 2030 Nukissiorfiit Options to introduce wind energy in combination with The public utility company Nukissiorfiit is responsible battery bank modules into Greenland’s energy source for producing and delivering electricity, heating and mix are currently being investigated. Alaska and The water throughout the entire Greenlandic districts. Faroe Islands are providing basis for best-practice and The company is publicly funded by a yearly grant, but lessons learned. In any way that Greenland and its as part of an instated agreement, this grant is reduced industries are to interchange towards future growth, on a year-to-year basis, pushing Nukissiorfiit to seek utility systems and energy distributing will need to fol- cost efficiency in its operations. With a responsibility low a parallel road of expansion and services. Looking that relates to not only producing, but also delivering ahead towards 2030 – the political ambition is that 90 utilities, Nukissiorfiit is behind a steady stream of pro- per cent of the country’s energy needs will be covered ject tenders and look into advancing the use of green by renewable energy by 2030. energy even further. In Nuuk, for instance, the com- 50 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

Hydro plants in Greenland

5

2

4

1 1 Buksefjorden Supplies: Nuuk, West Greenland Constructed: 1990 – 1993 and 2008 (third turbine installed) Construction budget: 1,071 million DKK 3 Main contractor: Nuuk-Power consort Effect: Three turbines producing 45 MW

2 Sisimiut 4 Tasiilaq Supplies: Sisimiut, West Greenland Supplies: Tasiilaq, East Greenland Constructed: 2007 – 2010 Constructed: 2002 – 2005 Construction budget: 500 million DKK Construction budget: 59 million DKK Main contractor: Ístak (Phil & Son) Main contractor: Phil & Son Greenland Effect: Two turbines producing 15 MW Effect: One turbine producing 1.2 MW

3 Qorlortorsuaq 5 Ilulissat Supplies: Narsaq and Qaqortoq, South Greenland Supplies: Ilullissat, West Greenland Constructed: 2004 – 2007 Constructed: 2010 – 2013 Construction budget: 500 million DKK Construction cost: 568 million DKK Main contractor: The EnergyConsort Main contractor: Phil & Son Greenland Effect: Two turbines producing 15 MW Effect: Three turbines producing 22.5 MW BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 51

KEY ORGANISATIONS

Arctic Umiaq Line – National passenger shipping Municipalities company °° Qaasuitsup Kommunia (North) °° Qeqqata Kommunia (Northwest) – Greenland’s National Airline °° Kommuneqarfik Sermersooq (West & East) °° Kommune Kujalleq (South) Asiaq – Greenland Survey °° Kanukoka – Association of Greenland’s munici- palities Educational Institutions °° Arctic Technology Centre (ARTEK) Naalakkersuisut – The Government of Greenland °° Greenland School of Minerals & Petroleum °° Imarsiornermik Ilinniarfik – Greenland’s Maritime Naatsorsueqqissaartarfik – Statistics Greenland Centre °° Ilisimatusarfik – Nukissiorfiit – Greenland’s National Utility Company

Diskoline – Passenger shipping company Pinngortitaleriffik – Greenland Institute of Natural Resources Flugfélag Ísland - Air Iceland Polaroil – Energy and oil supply company GEUS – Geological Survey of Denmark and Green- land – National shipping and harbour company Greenland Business / Greenland Venture – Busi- ness counselling and venture capital Sermersooq Business Council – Kommuneqarfik Sermersooq based business council Kalaallit Airports – National Airport development company (Nuuk, Ilullissat & Qaqortoq) SIK – Greenland Trade Union (largest employee trade union) Kalaallit Nunaanni Eqqartuussiviit – Greenland’s Courts Sikuki – Nuuk Harbour

KNAPK – Association of Fishers and Hunters in Sulisitsisut – Greenland Business Association (GE) Greenland (largest employer association)

Mittarfeqarfiit – Greenland Airports TELE-POST – National Communications Provider and Postal Services

Visit Greenland – National Tourism Council 52 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017 53

OUTLOOK

A British polar explorer once said: The plans were great, the expectations were even greater, but greatest of all was the disappointment. Ten years ago, the expectations were great in Greenland. We could not open any Danish or Greenlandic newspaper without reading about the huge mining, oil and gas potential. Investors were just waiting to close deals. The Chinese were coming in big numbers, any day now they said. Today we know better. The articles on Greenland’s mining adventure are fewer and have perhaps also found a more realistic tone. In a way a very understandable development. It has been a steep learning curve for many of us. Understanding the mining industry and the econom- ic and political DNA of the industry takes time.

It has also taken time to develop an adequate and sound policy framework in Greenland finding the right balance between the interest of the investors, the need to protect the fragile environment and the interest of the people in Greenland.

Even though there are fewer articles in the papers on Greenland these days, there is a certain buzz again. New licenses are issued and more companies are moving into the exploitation phase. On a political level, we see new movements in working towards a new joint Danish-Greenlandic investment fund and a new coalition government taking the exploration industry seriously.

At ACRM, we stand ready to grasp this new brighter window of business opportunities. But the government in Greenland also needs to be ready. We cannot afford any bot- tle necks in the administration process or any political hick-ups. The policy framework needs to be carved in stone so we in the near future know the costs and rules of operat- ing in Greenland. The industry is set to go. We have many competencies in and outside Denmark and in Greenland. So for the future in Greenland, I allow myself to have great expectations and not to be disappointed.

Niels Tanderup Kristensen Director, ACRM 54 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2016 / 2017

SOURCES

Asiaq – Greenland Survey // www.asiaq.gl Mineral Resources in the Arctic // Published by NGU – Geological Survey of Norway 2016 (1st edition) Business Potentials – planning for the future of oil, gas and minerals // Published by Sermersooq Business Municipalities: Council 2013 ǐǐ Qaasuitsup Kommunia // www.qaasuitsup.gl Geological Survey of Denmark and Greenland // ǐǐ Qeqqata Kommunia // www.qeqqata.gl www.geus.gl ǐǐ Kommuneqarfik Sermersooq // www.sermersooq.gl Greenland Benchmarking Report 2016 // ǐǐ Kommune Kujalleq // www.kujalleq.gl Published by the Arctic Cluster of Raw Materials (ACRM) in collaboration with the Confederation of Danish Industry Nukissiorfiit // www.nukissiorfiit.gl (DI) February 2016 NunaGIS digital atlas of Greenland Greenland’s oil and mineral strategy 2014-2018 // // www.nunagis.gl Published by The Government of Greenland – Ministry of Industry and Mineral Resources & Nuuk – Arctic Capital, Capital strategy for Nuuk // Ministry of Environment and Nature February 2014 Published by Kommuneqarfik Sermersooq June 2016 Grønlands Økonomi – The // Year- Sikuki – Nuuk Harbour // www.sikuki.com ly reports published by The Economic Council 2010 – 2016 The Transport Commission of Greenland – report // Government of Greenland Published by The Government of Greenland // www.naalakkersuisut.gl & www.govmin.gl & – Ministry of Housing, Infrastructure and Traffic January www.inatsisartut.gl 2011 (1st edition) Greenland Statistics // www.stat.gl Turismeudvikling i Grønland – hvad skal der til? – National Sector Plan for tourism 2016-2020 // How to set up a business in Greenland Published by the Government of Greenland – Information guide // Published by Deloitte – Ministry of Industry, Labour and Trade May 2016 October 2015 (6th edition) Visit Greenland // www.greenland.com InfoMine // www.infomine.com London Metal Exchange // www.lme.com Mineral resource companies: ǐǐ Arctic Resources // www.arctic-resources.com ǐǐ General Nice Development // www.generalnice.com.hk ǐǐ Greenland Minerals and Energy // www.gme.gl ǐǐ Hudson Resources // www.hudsonresources.ca ǐǐ KGHM // www.kghm.com ǐǐ North American Nickel // www.northamericannickel.com ǐǐ Tanbreez Mining Greenland // www.tanbreez.com ǐǐ Ironbark Zinc // www.ironbark.gl ǐǐ True North Gems // www.truenorthgems.com ǐǐ LNS // www.lns.no

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