Business Opportunities in Greenland Project Overview 2018 2 Business Opportunities in Greenland – Project Overview 2018
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BUSINESS OPPORTUNITIES IN GREENLAND PROJECT OVERVIEW 2018 2 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 BUSINESS OPPORTUNITIES IN GREENLAND PROJECT OVERVIEW 2018 Published by the Arctic Cluster of Raw Materials (ACRM) in collaboration with the Confederation of Danish Industry (DI), February 2018 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 The publication was made possible through the financial support of The Bank of Greenland Edited by Mads Qvist Frederiksen, Head of Secretariat, ACRM Photos: Hans Bak/UP Front Communication ApS: Page 14 and 57. Kalaallit Airports: Page 60. Ivars Silis: Page 56. Kommuneqarfik Sermersooq: Page 45. Mads Pihl/Visit Greenland: Page 4, 6, 41 (bottom) and 42 (bottom). Petter Cohen, Xtravel/Visit Greenland: Page 42 (top). Rebecca Gustafsson/Visit Greenland: Page 41 (top). Print: Kailow Graphic A/S ISBN 978-87-7144-135-2 (print) 250.02.2018 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 3 ARCTIC CLUSTER OF RAW MATERIALS The Arctic Cluster of Raw Materials (ACRM) is established by Greenland Business Asso- ciation (GE), The Confederation of Danish Industry (DI) and the Technical University of Denmark (DTU). The cluster was originally funded by the Danish Industry Foundation (IF). Purpose ACRM is a platform for companies with interests, experience and competences within the extractive industries. ACRM’s main purpose is to strengthen the competitiveness in Greenland and Denmark in the industry and contribute to sustainable growth and employment in both countries. To obtain this goal, ACRM will build up and support busi- ness cooperation, industry consortia and business concepts. Also, ACRM will provide technology and skill enhancement for Danish and Greenland companies in the Arctic extractive industries, especially in Greenland. Activities ACRM will work closely with strategic knowledge-exchange networks, academia and industrial innovation processes. The establishment of consortia within the extractive industries and support industries will secure both the level of competences in the mar- ket and prepare companies for the industry standards, contracts, certification and other necessary requirements. This will be achieved through conferences, round table discus- sions, industry seminars and workshops in Greenland etc. Member Requirements Members of ACRM commit to share their knowledge and competences with other mem- bers to make sure the industry cluster will be a visible platform, which can promote Dan- ish and Greenland companies on a high political and commercial level. Members will get access to all cluster activities, including exhibitions in Canada and workshops in Greenland. 4 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 5 FOREWORD The Arctic is a unique place to do business in and from. The four million people living in the region are spread around countries like Canada, Russia and the USA – and at the centre of them all is Greenland. There are many potential business opportunities across the region. Whether it is fishing, tourism, mining or infrastructure, the projects are there and so are the ambitions. Companies working in the Arctic will have to consider the in- genious people who has inhabited the region for thousands of years as well as the planet when doing business in the Arctic. Here, the UN Sustainable Development Goals have an important role to play in guiding strategies and ensuring social licenses to operate. At a regional level, the Arctic states and other international actors are increasingly engaging in the region making it a venue for both cooperation and competition over economic and security interests. The Sustainable Development Goals offer a good framework for cooperation in the Arctic. The universal terminology allows for the public and the private sector to set direc- tions and ensure sustainable economic development. Economic development is important in the Arctic. The region should not only be associ- ated with protective national parks but also as a place for doing business, making new investments and seizing unique opportunities. Obviously, climate change has a particu- larly strong impact on the vulnerable region. Yet, the global temperature increase allows new economic opportunities in the Arctic through new seaways, tourism and access to resources. Climate changes are influencing 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 found in Greenland’s mineral rich underground. The report is developed by the Arctic Cluster of Raw Materials (ACRM), which 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. Mads Qvist Frederiksen Head of Secretariat, ACRM 6 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 7 CONTENTS 8 A Nationless area in the Arctic 11 New Arctic shipping routes 12 The Arctic Circle and Greenland 15 OPERATING IN GREENLAND 17 Greenland at a glance 18 MINERALS AND HYDROCARBONS 19 The Public Administration 22 Mining projects 22 Existing and potential mining projects in Greenland 24 ¶ Greenland Ruby 26 ¶ Hudson Greenland 28 ¶ Ironbark Zinc 30 ¶ TANBREEZ Mining Greenland 32 ¶ Greenland Minerals and Energy 34 ¶ General Nice Development 36 ¶ North American Nickel 37 ¶ Alopex Gold 38 ¶ FBC Mining 39 ¶ Dundas Titanium 40 ¶ Alba Mineral Resources 43 INFRASTRUCTURAL DEVELOPMENT PROJECTS 44 Collaboration and Investments 45 Selected infrastructure projects in key figures 46 ¶ Sikuki – Nuuk Harbour 47 ¶ Kalaallit Airports 47 ¶ Mittarfeqarfiit 48 ¶ Nuuk Airport (Kalaallit Airports) 49 ¶ Ilulissat Airport (Kalaallit Airports) 50 ¶ Qaqortoq Airport (Kalaallit Airports) 51 ¶ Tasiilaq Airport (Mittarfeqarfiit) 52 ¶ Ittoqqortoormiit Airport (Mittarfeqarfiit) 53 ¶ Kangerlussuaq – runway upkeep, new port and road to Sisimiut 54 ¶ Siorarsiorfik – Nuuk City Development 56 HYDROPOWER AND CLEAN ENERGY 58 Hydro plants in Greenland 59 KEY ORGANISATIONS 61 OUTLOOK 62 SOURCES 8 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 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, entitle states to extend torial boundaries. The Arctic states (Canada, Russia, their territorial demands if they can prove their con- Norway, the USA and the Danish Realm) are all work- tinental shelf reaches beyond 200 nautical miles. ing to extend their territorial rights in the North. This will grant them an exclusive right to exploit natural resources on and below the seabed. Exclusive The efforts are rooted in a wish to establish rules fishing rights are not part of UNCLOS. for shipping in the area and to benefit from the raw material deposits that may be found there. The latter Danish Submissions to UNCLOS is, however, currently of less significance, partly The Kingdom of Denmark has submitted three because the raw materials located outside current partial submissions relating to Greenland to the territorial boundaries are difficult to access, and part- Commission in 2012, 2013 and 2014. On 15 Decem- ly because it is assessed that 80 per cent of the Arctic ber, 2014, the third partial submission – regarding raw material deposits are found within already estab- the area north of Greenland – was submitted cover- lished boundaries. ing an area of 895,541 km2. The partial submission for Greenland from June 2012 concerned the area Exclusive Economic Zone (about 114,929 km2) south of Greenland and the All states are currently allowed to establish an exclu- partial submission November 2013 concerned area sive economic zone 200 nautical miles off their coast- (about 61,913 km2) northeast of Greenland from. 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 2018 9 Existing boundaries Nationless area Lomonosov Ridge Source Nordregio Alaska US. Rsia C N Pole Greenland N I Finland Sweden Faroe I Nationless area in the Arctic 10 BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 North West Passage North East Passage Central Arctic shipping route N Pole New Arctic shipping routes BUSINESS OPPORTUNITIES IN GREENLAND – PROJECT OVERVIEW 2018 11 NEW ARCTIC SHIPPING ROUTES Container ships using the Northern Sea Routes The North East Passage is particularly interesting across the Arctic can cut the length of their journey from a European perspective. A trip from Rotter- by 40% compared with travelling via the Suez Canal.