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2003 Exclusive Licences, 1 January 2004

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2003 Exclusive Licences, 1 January 2004 Annual Report 2003 Exclusive licences, 1 January 2004 Ilulissat Sisimiut Kangerlussuaq Tasiilaq 0 2040608100km0 Petroleum EnCana Corporation/NunaOil A/S Maniitsoq Minerals Angus & Ross PLC Brereton Engineering & Dev. Ltd. Bureau of Minerals and Petroleum Crew Development Corporation Falconbrigde Limited Gem Fields International Hudson Resources Inc. Nuuk Nalunaq Gold Mine A/S Navigator Exploration Corp. New Millennium Resources N.L. NunaMinerals A/S Rimbal Pty Ltd Skaergaard Minerals Corp. Vismand Exploration Inc. Application for new licence 0 20406080100km Application for renewal Narsaq Qaqortoq Nanortalik Topographic base: G/2.5M Vector © National Survey and Cadastre, Denmark / Geological Survey of Denmark and Greenland, 1997. UTM Zone 24, WGS84. 0 10 20 30 40 50 km Map of licences 1 January 2004 Example of map of licences in Greenland.The map is updated every 14 days on the first and sixteenth of the month on the Bureau of Minerals and Petroleum website www.bmp.gl and it can be printed from here. Preface Greenland is the world's largest island and has great potential been pivotal for the industry's interest in the licensing round. for becoming a significant supplier of mineral resources to the In addition, the Greenland government and the Danish govern- world market. However, making Greenland's potential for mi- ment have, in anticipation of the licensing round, adopted in- neral resources and water resources attractive for exploration ternationally competitive exploitation conditions which, apart is an important task, as is true for other poorly accessible land from corporation tax, include royalties on profits and partici- and marine areas where large areas are still almost unexplo- pation by NUNAOIL A/S in all exploration and exploitation li- red. Doing this will enable Greenland to compete with other cences. and often more easily accessible sites. In November 2003, the Bureau of Minerals and Petroleum 2003 was a year when expectations for the future became (BMP) hosted a successful strategy conference focusing on the much more specific than they had been before.At the end of problems related to the export of ice and water from Green- the year, Nalunaq Gold Mine A/S in South Greenland commen- land.A number of experts helped clarify the complex of markets, ced loading ore from the gold mine.The opening of this mine industries, technologies and resources.The main conclusions in Greenland sends a particularly positive signal to internatio- of the conference formed the basis for the preparation of a nal industry that mining in Greenland is a viable option. new strategy for the area in 2004.The objective is for Green- land to become a significant exporter of ice and water for the Therefore, the Greenland government has great expectations global market. that the gold mine in Nalunaq will be encouraging evidence for other mineral exploration companies. Furthermore, promising The Greenland government places great emphasis on develo- exploration results from other locations in the country reflect ping a strong industry for the exploitation of Greenland's na- international companies' investments in the exploration in tural resources which will benefit economic growth as well as Greenland during recent years. employment in Greenland. Oil and gas activities have been increasing steadily in the last few Since the Greenland Home Rule took over the management years. In 2003, activities reached a new peak with the collection of mineral resource activities in Greenland in 1998, all signifi- of 9,000 km of seismic data in the sea area off the coast of West cant decisions with regard to mineral resources have been Greenland.Also the implementation of a comprehensive and made in common understanding between the Greenland go- successful seabed sampling programme which, for the first time, vernment and the Danish government. BMP is responsible for showed the existence of an oil-prone source rock offshore the secretariat services for the Joint Committee on Mineral West Greenland. Resources in Greenland. In close co-operation with particu- larly the Geological Survey of Denmark and Greenland This high level of activity is due partly to the upcoming licens- (GEUS), the National Environmental Research Institute (NERI), ing round in 2004 and partly to the oil company EnCana Cor- the Danish Energy Authority and NUNAOIL A/S, BMP has tar- poration having carried out a comprehensive exploration pro- geted its efforts to fulfil the goal of developing the mining in- gramme in 2003.This was carried out within the framework of dustry into one of the most important industries in Green- the corporation's licence for exploration and exploitation of land. oil and gas in an area offshore West Greenland. The Greenland government is looking forward to continued With a view to further strengthening oil and gas exploration, co-operation in the coming years.There is no doubt that Gre- the Greenland government and the Danish government adop- enland is facing a very exciting future. ted a new strategy in June 2003. In accordance with this oil strategy, oil licensing round for areas offshore West Greenland will be carried out in 2004.These areas will be selected and promoted to the oil industry on the basis of geological surveys of the subsurface.The results of the projects and the chosen promotion strategy toward the international oil industry have Minister for Self Governance, Justice and Petroleum 1 Mr Jørgen Wæver Johansen The Joint Committee on Mineral Resources in Greenland The Mineral Resources System for Greenland establishes a The Joint Committee joint Danish-Greenlandic political responsibility for mineral resource activities in Greenland.This means that At the end of 2003, the Joint Committee consisted of Greenland and Denmark have joint authority to make de- the following members:: cisions regarding principal investments in mineral resource activities. Furthermore, the Danish government and the Chair: Kim Andersen, MP (Venstre) Greenland government have agreed on the distribution of possible profits from extraction of mineral resources. Greenlandic members: The Joint Committee on Mineral Resources in Greenland Kuupik Kleist, vice chair has been set up as a political forum in which politicians Per Rosing-Petersen from Greenland and Denmark can bring central issues Per Berthelsen regarding mineral resource activities up for debate. BMP Ruth Heilmann under the Greenland Home Rule administrates the Mineral Jakob Sivertsen Resources System for Greenland and is the responsible authority for case processing in connection with mineral Danish members: resource activities. Helge Mortensen, vice chair The more detailed provisions pertaining to the Mineral Kaj Ikast Resources System for Greenland have been laid down Aase D Madsen in the Greenland Home Rule Act and in the Mineral Kristen Touborg Resources Act. Erik Larsen The Joint Committee on Mineral Resources in Greenland - also called the Joint Committee - consists of five politi- The following officials from Greenland and Denmark cally appointed members from the Greenland Parliament took part in committee work as delegates: and the Danish Parliament. In addition, a Chair is appoin- Kaj Kleist, Greenland Home Rule ted by the Queen of Denmark following joint nomination Hans J. Høyer, Department of Environment and Nature by the Danish government and the Greenland govern- Kirsten Trolle, the Danish Prime Minister's Office ment.The tasks of the Joint Committee are to monitor Michael Dithmer, the Danish Ministry of Economic and developments in mineral resource activities and to su- Business Affairs bmit its recommendations to the Danish and Greenland governments on, for example, issues about the granting During 2003, five Joint Committee meetings were held. of licenses for preliminary surveys, exploration and ex- ploitation. Less complex cases, such as applications for new li- censes and area expansions and transfers, are processed in between meetings by the Joint Committee's Chair and Vice Chairs. The Bureau of Minerals and Petroleum Objectives and tasks of the Mineral resources as a primary industry Bureau of Minerals and Petroleum Greenland aims at making mineral resources one of its The Bureau of Minerals and Petroleum (BMP) under the primary industries. Developments within mineral re- Greenland Home Rule is responsible for the management source activities must therefore be in dialogue with the of mineral resource activities in Greenland and for the people of Greenland.As a consequence, BMP is striving export of ice and water from Greenland. BMP aims at to establish a clear and comprehensible framework for ensuring professional promotion of the mineral potential mineral resource activities via a number of information in Greenland to the international mining industry. activities, in order to encourage a successful working relationship between the mining industry and the public. One of the main tasks of BMP is the day-to-day admini- stration of licences within the area of mineral resources. External partners BMP is responsible for all case processing and is the only authority the industry needs to contact in order to receive BMP co-operates on the administration of mineral necessary licenses.This ensures efficient case processing resource activities with e.g. the Geological Survey of for mineral resource activities. Denmark and Greenland (GEUS), the National Environ- mental Research Institute (NERI) and the Danish Energy Start-up and promotion Authority.Also the state-owned oil company NUNAOIL A/S is an important
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