Social Impact Assessment for the ISUA Iron Ore Project for London Mining Greenland A/S (in compliance with the BMP Guidelines on SIA of November 2009) Final

March 2013

TABLE OF CONTENTS PAGE

EXECUTIVE SUMMARY V

1 INTRODUCTION 1

1.1 Objectives and Process of a SIA 1

1.2 Study Area for the SIA of the Project 3 1.2.1 Areas of influence 3 1.2.2 Short description of the SIA study area 4

1.3 Acknowledgements 6

2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK RELATED TO THE SIA OF THE PROJECT 7

2.1 General political situation in Greenland 7

2.2 Legal Framework 7 2.2.1 Greenlandic legislation 7 2.2.2 Orders on Occupational Health and Safety relevant to the project 9 2.2.3 National guidelines relevant to the project 9 2.2.4 International Unions and Conventions 10

2.3 Act on Large Scale Projects 10

2.4 Taxes and Revenues 11 2.4.1 Concession fees 11 2.4.2 Tax regulation 11

2.5 SIA Guidelines 13

3 PROJECT DESCRIPTION 14

3.1 The ISUA Project 14

3.2 The ISUA project key components and infrastructures 15

3.3 Expected implementation schedule for the ISUA Project 19

3.4 Labour requirements for the Construction Phase and Operation Phase of the ISUA Project 20 3.4.1 Construction phase 20 3.4.2 Operation Phase 21

3.5 Transport of personnel 26

4 SIA METHODOLOGY 27

4.1 Baseline study 27

4.2 Data collection from secondary sources and research from primary sources 27

4.3 Impact Analysis Methodologies 29

4.4 Summary of the Economics of the Isua Project 33

5 SOCIAL AND ECONOMIC BASELINE CONDITIONS 36

5.1 Introduction 36

5.2 Demographic profile 37 5.2.1 Country profile 37 5.2.2 Ethnic composition 38 5.2.3 Languages spoken 39 5.2.4 Key Demographic indicators 40 5.2.5 Number of inhabitants 40 5.2.6 Age and gender distribution 41 5.2.7 Population statistics 43 5.2.8 Mortality and death rate 43 5.2.9 Fertility and life expectancy 43 5.2.10 Migration 44

5.3 Description of Society 46 5.3.1 Social and political organisations 46 5.3.2 Municipal Administration 49 5.3.3 Public Authorities covering the Danish Realm 51 5.3.4 Labor unions – civil society organisations 53 5.3.5 Labor Unions 55 5.3.6 NGOs 56 5.3.7 Employers’ organisations 56 5.3.8 Gender issues 56

5.4 Socio-economic conditions 57 5.4.1 Economy 57

5.5 Education 69 5.5.1 Primary School 70 5.5.2 Secondary Education 70 5.5.3 Further Education 70 5.5.4 Higher education in Nuuk 73

5.6 Physical Settings and infrastructure 73 5.6.1 Housing and accommodation 73 5.6.2 Communication 76 5.6.3 Transport facilities and infrastructure 76 5.6.4 Energy production 78 5.6.5 Water Supply 79 5.6.6 Waste Management 79 5.6.7 Other projects in the area 79 5.6.8 Development plans in the municipality and project area 80

5.7 Public Health 81 5.7.1 Health status 81 5.7.2 Health services 82 5.7.3 Social health and vulnerable groups 84

5.8 Cultural and Natural Values 86 5.8.1 Values and traditions of importance in the Greenlandic society 86 5.8.2 Religion 87 5.8.3 Relations of the Greenlandic people to the local, regional, national and international communities 87 5.8.4 Existing use of natural resources in Greenland 88 5.8.5 Local use of natural resources in the project area 90 5.8.6 Sites of historical and cultural importance in the project area 92

5.9 Qeqqata Kommunia 93 5.9.1 Introduction 93 5.9.2 Demographic and socioeconomic profile 94 5.9.3 School of Minerals and Petroleum in Sisimiut 97 5.9.4 ARTEK (Arctic Centre for Technology) 98 5.9.5 Kangerlussuaq airport 98 5.9.6 Maniitsoq 98

6 SOCIAL IMPACT ASSESSMENT 99

6.1 Economic environment 99 6.1.3 Local business and economy during Construction 115 6.1.4 Conflicts and Synergies with Other Economic Sectors 123 6.1.5 Traditional livelihood 127

6.2 Education and Training 133 6.2.1 Training skills development opportunities during construction 133 6.2.2 Training skills development opportunities during operations 134 6.2.3 Summary of Impacts on education and training during construction and operation 137

6.3 Public Services and development plans 139 6.3.1 Impacts on public services and development plans during construction 140 6.3.2 Impacts on public services and development plans during operations 141 6.3.3 Summary of impacts on public services and development plans during operation 143

6.4 Social Aspects 144 6.4.1 Demography and population changes during construction 145 6.4.2 Demographic changes during operation 146 6.4.3 Social conflict 148 6.4.4 Vulnerable groups 149 6.4.5 Resettlement impact 149 6.4.6 Assessment of potential criminality at the mining site 150 6.4.7 Summary of impacts on social aspects 151

6.5 Health 154 6.5.1 Occupational health and risk of accidents 154 6.5.2 Summary of Occupational Health, Hygiene & Safety (Construction & Operations) 155 6.5.3 Health Services 160 6.5.4 Public Health and quality of life 161 6.5.5 Environmental impacts 162 6.5.6 Summary of impacts on public health and quality of life 163

6.6 Cultural and natural values 165 6.6.1 Sites of monument or cultural importance 165 6.6.2 Access to natural areas perceived as important 166

6.7 Summary of anticipated impacts of the ISUA iron ore project 168 6.7.1 Key Benefits and Opportunities 169 6.7.2 Key Risks and Negative Impacts 169 6.7.3 Summary table 169

7 DRAFT IMPACT AND BENEFIT PLAN 171

8 DRAFT MONITORING PLAN AND DRAFT EVALUATION PLAN 186

9 STAKEHOLDERS CONSULTATIONS AND PARTICIPATION 191

9.1 Public Hearing process 191

10 REFERENCES 195

ANNEX 1: TERMS OF REFERENCE ANNEX 2: ANNEXES TO TERMS OF REFERENCE ANNEX 3: BASELINE APPENDICES ANNEX 4: PROJECT CONTRACT PACKAGES ANNEX 5: HS-ANALYSIS OF LOCAL USE STUDY ISUA ANNEX 6: CLOSURE CONCEPT FOR THE ISUA MINE ANNEX 7: ACCOMODATION PLANS

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Changes made to SIA report between August 2012 and final submission, sorted after appearance in report. Responses to written comments from the public hearing are denoted with the Whitebook section/subsection number.

Public hearing written SIA section Key words /subject description comment 1.2. 24.2 Correction of where to keep dogs made 2.1; 5.2 33.6 Clarification of citizens of Greenland 2.2 23.1 Additional regulations added 2.2 24.6 Rules on field work added 2.2 24.3 Correction of Danish translation of Maritime Safety Act No 882 made 2.2 24.4 Correction of reference to Act No 11 of 19 May 2003 made 2.2 24.5 Correction of Nature Protection Act made 2.2 33.7 Emergency of Management Act is added 4.3 13.17 Methodology section expanded 5. 13.18 Small comments and errors to the baseline conditions made (5.2.4;5.8.5) Figures on mortality and death rate updated as well as education section 5.2.8; 5.5 20.12 updated 5.3.2 18.0 Organisation diagram of Kommuneqarfik Sermersooq updated 5.3.2 24.8 List of work for KANUKOKA corrected 5.3.3 33.8 Public authorities added 5.5.4 24.9 Correction of Vocational educations institutions made 5.7.3.4 33.9 Section on Crime and violence amended 6.1.2.3 24.11 Proposed actions added 6.1.5.3 13.19 Coordination with KNAPK in development the IBA and monitoring plan added 6.1.3 17.9 Table 6-10 changed 6.2 23.3 Education for safety representatives on safety training added 6.3 33.10 Paragraphs on pressure on public services amended 6.3.1 33.12 Paragraph on authorities rescue ability added 6.5.2.7 20.13 Section on impact on health management updated 6.5.3 20.22 Sub-section on pressure on public health added 6.4.6 33.11 Section on potential crime at the site added 6.5 23.5 Requirements of employees clarified 6.5 23.4 Employers manual on hazardous materials 7. 23.6 Risk of accident due to lack of instruction added Clarification of term ‘no actions required’ has been changed to no mitigations 4.3 24.10 required and explained 6.7 20.20 Recommendation of monitoring of lifestyle added

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Public hearing 2 nd meeting 7 September 2012 on SIA SIA section (Question number from minutes Key words /subject description of meeting)

6.1.1 7, 17, 25, 29, 56, 64, 65 Description on the taxes issues added and clarified

2.3; 6.1.2.1; 11, 38 Large Scale Project Act added 6.4.1; 6.4.7 6.1.3.1 46, 61 Local and International tenders clarified (table 6-10 changed) 3.5; 6.4.1 54 Access to the mine clarified 5.8.6; Related to EIA – 11.2 Sites of historical and cultural important

SIA section Reason for change Key words /subject description

6.1.1 Mistake in headlines Table 6-3. 6-4, headlines changes

6.1.1 Error in calculations Table 6-5, figures changed due to error in calculation

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DEFINITIONS AND ABBREVIATIONS Wording or abbreviation Explanation ANFO AN/FO – Ammonium Nitrate / Fuel Oil ASMR Age Standardized Mortality Rate

BIF Banded Iron Formation BIP Benefit and Impact Plan BMP Bureau of Minerals and Petroleum in Greenland DKK Danish Crowns DWT Dead Weight Tonne EIA Environmental Impact Assessment EPCM Engineering Procurement Construction Management FIFO Fly-In-Fly-Out basis GA Employer’s Association of Greenland GM Grontmij A/S Human Immunodeficiency Virus/ Acquired Immune HIV/AIDS Deficiency Syndrome HS Health and Safety HR Human Resources ICC Inuit Circumpolar Council ILO International Labour Organization Inuit Aboriginal/Local people of Greenland IRR Internal rate of return IUCN International Union for Convention of Nature KANUKOKA The Greenland Municipality Organization Short for Marine Pollution – International Convention for MARPOL the Prevention of Pollution from Ships 1973/1978 MoB Man over Board MSDS Material Safety Data Sheet MTPA Million tonnes per annum Naalakkersuisut Greenland Government Nunatta Katersugaasivia Allagaateqarfialu NKA Greenland National Museum and Archives NPV Net present value OHS Occupational Health and Safety PPE Personnel Protective Equipment QAPP Quality Assurance Project Plan RAL Royal Arctic Line A/S RUC Roskilde University Center SIA Social Impact Assessment Sulinermik Inuussutissarsiutteqartut Kattuffiat – SIK Employee’s Union of Greenland SLiCA Survey of Living Conditions in the Arctic

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STI Sexual Transmitted Infections Tailings Material left after extraction of the ore TB Tuberculosis Ton Metric tonnes ToR Terms of Reference United Nations Educational, Scientific and Cultural UNESCO Organization WPA Work Place Assessment WHMIS Workplace Hazardous Material Information System

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EXECUTIVE SUMMARY

Final SIA On 16 August the draft SIA Report was published at the official hearing portal of Nanoq (www.nanoq.gl ). During the period from 27 August, 2012 to 19 October 2012, the Greenland Bureau of Minerals and Petroleum (BMP) organized four Public Hearings and in addition London Mining organized a number of Public Consultation meetings to further provide the public with project information in the areas of engineering, environment and socio-economic aspects of the ISUA Project.

The four Public Hearings organized by BMP focused on different topics. The first Public Hearing took place on 27 August which was a general session introducing the hearing process and focused on a presentation of the project. The second Public Hearing took place on 7 September and focused on the SIA process, where the third Public Hearing took place on 24 September focused on the EIA. The final Public Hearing was on 7 October which was an open debate on all the topics raised at the previous meetings.

At the hearing portal, additional information was made available including minutes of Hearings and answers to the questions which were raised at the second and third Public Hearings.

During the period that followed the last Public Hearing (Hearing No 4), from 7 October 2012 to 12 November 2012, BMP accepted to keep receiving electronic versions of comments and questions from the Public.

A white book was then prepared to provide responses and/or clarifications to each and every comments and questions raised by the Public during the Hearing Process. Part of the comments and questions from the Hearings were directed to London Mining and many other comments and questions were also directed to the Greenland Government. Therefore, the white book includes both, responses from London Mining and responses from Greenland Government.. The white book is published on the BMP Hearing Portal and it contains three parts. Part I is related to the meeting on the SIA process, part II is related to the meeting on the EIA while part III includes the responses to the comments and questions received at the last Hearing session as well as those received during the period that followed the last Hearing from 7 October to 12 November. All three parts includes the responses to the comments and questions from the Public Hearings; they were submitted to BMP on December 2012 (Parts I & II) and January 2013 (Part III).

This final SIA report accounts when applicable, for relevant comments from the Public Hearings.

Introduction

This chapter is an executive summary of the Social Impact Assessment (SIA) for the ISUA Iron Ore project located 150 km northeast of Nuuk in Greenland.

This SIA has been produced by Grontmij A/S on behalf of London Mining according to the Guidelines for Social Impact Assessment for mining projects in Greenland, Bureau of Minerals and Petroleum (BMP), November 2009 (the Guidelines).

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Figure 1 Location of the ISUA Project in Greenland

An Environmental Impact Assessment (EIA) has been prepared and reported in a separate report by Orbicon A/S (Orbicon, 2012).

Objectives of SIA According to the Guidelines, the objectives of the SIA process are to identify and to analyze the potential impacts and benefits of a proposed mining activity and to recommend initiatives to realize sustainable development opportunities, promote benefits to Greenland, as well as to mitigate the negative impacts. The SIA is based on a high degree of engagement of the stakeholders.

Legislation The main legislation for this project is the Act no. 7 of 7 December 2009 on Minerals and Resources (Mineral Resources Act), which came into force on January 1, 2010. The Social Impact Assessment is based on the Guidelines for Social Impact Assessments for mining projects in Greenland, November 2009, prepared by the Bureau of Minerals and Petroleum.

The “Large Scale Projects Act” which was passed by the Greenland Government in December 2012 is also an important piece of legislation for supporting the construction of a large scale mining project such as the Isua Project.

SIA Process The SIA process for the ISUA Iron Ore Project started in October 2009 with the elaboration of a Scoping document. Scoping consultations with stakeholders in Nuuk were conducted in November 2009 (reference to section 9.0 of the SIA for a full list of workshops and consultations). A first draft of the Terms of Reference (ToR) was presented to BMP in February 2010. The ToR was updated after the ISUA Pre-feasibility

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study was issued; and the ToR was then re-sent to the authorities for comments and approval in November 2010.

The SIA covers the construction and operation phases of the ISUA Iron Ore Project .The closure phase is also addressed as part of the Impact and Benefit Plan and Monitoring Plan of the SIA. The study covers the areas potentially impacted by the mining operations towns and settlements where the impacts and benefits of employment, business opportunities and developments directly and indirectly created by the project are expected to be noticeable.

Summary Description of the ISUA Iron Ore project

Ujarassuit Narsap Sermia

Figure 2 The ISUA Project key components

The aerial photo above shows the key components of the ISUA project, namely: 1) The mine which is located at the edge of the glacier at some 1100 m elevation; 2) A process plant facility which will transform the ore into iron concentrate; 3) A port facility which will be located at Taseraarsuk Bay; 4) A potential future airport for “Dash” types of planes; and 5) An access road between the port and the process plant.

The goal of the ISUA Iron Ore Project is to extract iron ore from the mine and to convert this ore into an iron concentrate – the final product of the processing. The current design of the project is for a 15 years mine life with a production of 15 Million tons per year of iron concentrate. It is expected that the mine life would extend for more than 15 years, as further resources drilling is to take place during construction and operation in order to confirm additional indicated ore resources.

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The iron concentrate to be produced by ISUA is a high quality product with approximately 70.2 % iron (Fe) content. The iron concentrate, in the form of a “slurry”, is transported from the process plant by a slurry pipeline along the access road, to the port area where water is removed from the slurry. After the water is removed from the slurry, the iron concentrate can then be stored and loaded on bulk carrier ships for transport to Europe and to China.

In the EIA of the project, design measures are included to limit the potential impact on the movement of caribou across the road and pipelines (Orbicon, 2012).

The SIA is based on the design for the ISUA Project for a mine life of 15 years with production capacity of 15 Million Tons of iron concentrate per year, as established by the ISUA Bankable Feasibility Study (BFS; SNC-Lavalin, 2012).

Currently, the life of the ISUA mine is estimated to be 15 years. The life of the mine could be more than 15 years, up to perhaps more than 30 years, once more drilling is completed to confirm the additional reserve of the mine. Such further exploration drilling will take place during construction and during the operation of the mine.

The following figure shows the flowchart of the ore processing.

Figure 3 Block Flow Diagram revealing the main processes of the mine. Source: London Mining

Based on the project planning presented by the Bankable Feasibility Study (BFS) for the ISUA project, the key steps for implementation are summarized as follows:

• Submittal to BMP of the BFS, EIA and SIA was completed in March and May 2012; • Public Hearings process was completed over the period from August to October 2012;

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• IBA negotiations with BMP and stakeholders started in December 2012; • Construction of Access Road and Construction Camps were planned for 2013, subject to permit approval by Greenland Government and to confirmation of financing. • Construction of the Mine facilities (process plant, port, power plants, etc) planned for 2013-2015 subject to permit approval by Greenland Government and to confirmation of financing.

Workforce The construction of the ISUA project will require in the range of 1500 to 3000 skilled and experienced workers in all construction disciplines such as civil work, mechanical installation, structural steel erection, electrical installation, concrete work, automation and control, etc.

For the Operation Phase of the mine, the project will be staffed for the first years of operation using a combination of local Greenlandic employees and expatriate personnel including North Americans, Europeans, Chinese and other Asian operators. All expatriates and local employees will be accommodated at permanent camps for the duration of their onsite rotation. Housing at the permanent site accommodations, meals, safety gears and cleaning of clothes are provided free to the workers. Transportation from the site to workers home during the rotation is also provided partially paid or at no cost to the mine employees.

For the Operation Phase, the total average annual staff for the mine is estimated to 680 in year -1 to year 4, increasing to an annual average of 810 in years 5 to 15. The table below provides the annual average staffing levels per category of personnel for the 2 main periods of operation.

Year -1 to 4 Year 5 to15 Average annual number of local Greenlandic staff (20%-55%) 136 445

Average annual number of Western Labour (35 % for the first 5 years; 238 365 45 % for years 6 to 15) Average annual number of Chinese/Asian Operator Labour (45 % for the first 5 years; 306 0 assumed to be replaced starting a year 5) Table 1 Summary of expected staffing during operation/yearly average number of employees per period. Note: Year -1 refers to the year of commissioning and production ramp-up.

During the construction period, the workers will be transported by boat from Nuuk to the ISUA site. For the purpose of their rotation to home, construction workers will transit in Nuuk to get to the airport. The operation of transporting workers will be managed by the Mine personnel. The use of the port of Nuuk will only be for allowing workers to transit to Nuuk to and from the ISUA site to the Nuuk aiport.

The ISUA Mine is a remote site and a privately operated site. It is located about 150 km from Nuuk and there is no public transportation between Nuuk and the site. All the foreign workers coming to work for the project must be carefully managed in a logistically possible

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and economically sensible way to bring them to the site and going back home. When groups of workers come to Greenland and go on their rotation returning home, the transportations must be organized by the Mine officers according to a detailed travel-work schedule. The workers on rotation going home will be transported by ferries to Nuuk, following stringent safety procedures under the responsibility of mine safety personnel. Without such a discipline, the rotations of personnel at the mine cannot be managed. This type of management plans are about the same for all remote mines in Canada and in other countries. It is important to point out that these workers are not separated from Greenlanders as there are local workers working on site.

Approaches and Methodologies The BMP SIA Guidelines of November 2009 is the basic reference to establish the level of information, content, and general structure of the SIA.

The SIA is based on a participatory approach, involving the stakeholders as often and effectively as possible at each stage of the SIA process.

The SIA identifies the potential relationships between the proposed potential impacts from the project and the valued socio-economic components. All relevant potential impacts have been identified, with priority given to those which are identified as the biggest concerns by stakeholders and authorities. For the potential impacts identified, the SIA includes the evaluation of the impact (significance) and proposes a possible mitigation. The net impact after the application of the mitigation measure will be further described. For the potential benefits identified, the SIA includes the evaluation of such benefits and proposes measures to maximise it.

The scoping phase Scoping consultations with stakeholders in Nuuk were conducted in November 2009 in order to get input to focus the SIA on key issues identified in cooperation with the stakeholders.

The result of the scoping phase was the ToR (Annex 1 including the stakeholder workshop report).

The social baseline study The social baseline study was carried out over the period from 2010 to 2011.

The baseline study provides information on demographic and economic conditions and trends, political structures, local organisations, cultural traits, and other factors that can influence the way in which affected communities will respond to anticipated changes brought about by the project. The baseline also helps to predict in which way the project will be affected by these factors. The development of the baseline and the identification of the impacts are an interrelated and parallel process.

For the ISUA project, the Baseline study was performed in four steps: • Data collection from secondary sources: review and systematization information and data from publications, official statistics, especial studies on the Greenlandic population in Greenland and Denmark, web based studies and articles, follow up on Greenlandic and Danish media, etc. All the documents and sources consulted are listed at the end of this report.

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• Collection of information from primary sources, through field work and interviews with key informants and stakeholders (field work, mail and telephone), and qualitative participatory methods • After having identified potentially critical social issues, detailed interviews and/or short studies involving specific project affected groups (focus groups) were carried out in the community. • Detailed interviews and Specific study for collection of quantitative and qualitative information related to use of local use of natural resources in the project area

For the ISUA project, the content of the baseline follows the recommendations of the Guidelines for SIA of Mining Projects, being more detailed in the aspects that are relevant for the impact assessment of the project. As required by the Guidelines, the baseline Study encompasses information at National level, at Municipal level for Kommuneqarfik Sermersooq and local level for Kapisillit. When relevant and possible, baseline information from Qeqqata Kommunea, as required by the BMP, is also included.

Impact Analysis Methodologies Potential impacts arising from the project activities on socio-economic components, both during the construction and operation phases have been identified and their magnitude quantified as far as possible by use of an Impact Matrix, including the magnitude of each impact. The significance and magnitude of the impacts identified has been evaluated according to the following significance factors:

• Certainty of impacts: likelihood of occurrence, level of certainty of its occurrence

• Extent of the impacts: geographical range of the impacts, regional “beneficiaries” and “non-beneficiaries ”

• Duration and frequency of impacts: temporary occurrence of the impacts (short lasting or permanent), wide fluctuations that could disrupt the community over time (boom-and bust periods)

• Period of Manifestation: the impacts could be noticed immediately or over time by the community

The SIA has also identified mitigation measures to be implemented for all impacts likely to occur, adverse in nature and significant enough to require mitigation (medium and high- level (negative) impacts) in order to mitigate or eliminate such impacts.

Anticipated social impacts are summarised in the table at the end of the executive summary, with colours indicating their magnitude and significance both before and after applying measures. The measures are either mitigation measures to minimize the potential negative impacts or measures to maximize the benefits.

Significance of Anticipated Impacts of the ISUA Iron Ore Project: Positive (benefits & Negative (risks opportunities) and impacts) Not significant Not significant or Not relevant Low +L - L Medium +M - M High +H - H

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Social Baseline Conditions

Greenland Greenland’s population primarily consists of Greenlanders, or Kalaallit, with roughly 10% comprised of Danes and other Europeans.

As of July 1 st , 2011, the total population of Greenland was 56,890.Greenlanders live in 18 towns and about 60 settlements stretched over 2000 km, primarily on the west coastal areas. A total of 47,091 people live in towns and 8,733 people live in settlements (Statistics Greenland, 2010). The country has been divided into 4 municipalities since 2009: • Municipality of Qaasuitsup Kommunia • Municipality of Qeqqata Kommunia • Municipality of Kommuneqarfik Sermersooq (ISUA project location) • Municipality of Kommune Kujalleq.

The male population dominates from age 24 to 74 and that the female population dominates from age 75 and up. Moreover, there is a large population of both males and females of age 40 through 49, which indicates a baby boom in the 1960s.

The death rate for males is higher than female death rate. Life expectancy for men is an average of 66.6 years and women 71.6.

Greenlanders are geographically highly mobile, and it is common for people to move within the country. Younger people are also more likely to move than older people. Women are also more likely to move for educational purposes and permanently from a smaller to a bigger populated area than males (Mobility Study, 2010).

Socio-economic conditions The national economy is highly dependent on fishing and fish produce as well as a block grant from Denmark.

The private sector in Greenland primarily consists of small enterprises such as retailers, builders, fishermen, hotel and catering, as well as repair services, apart from a few large Greenland Government owned national companies.

The economy of many Greenlandic households is not only dependent on wage jobs or taxable incomes, but also includes the use, consumption and/or exchange of produce of traditional activities, like hunting, fishing, handicraft, harvesting, etc. – a so-called ‘mixed cash- and harvest-based economy’ (Poppel et al., 2007).

The unemployment rate for Greenland in 2010 is 7% equivalent to 2045 people and 1.6 % (January 2010) in Nuuk (Kommuneqarfik Sermersooq) and over 8 % in Sisimiut and Maniitsoq (Qeqqata Kommunia). Unemployment in Kommuneqarfik Sermersooq is mainly seen among unskilled workers.

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Transport facilities and infrastructure Transportation of passengers and freight is mainly done by ships, boats, planes and helicopters. As there are no roads or railways in Greenland between towns and settlements, the infrastructure is very vulnerable to weather and climatic conditions. The major airports are Narsarsuaq and Kangerlussuaq which respectively hold 1830 m and 2810 m of runway and have regular flights to and from Denmark, and in some seasons to and from Iceland. There are an additional small 11 airports near towns with shorter runways including Nuuk. Six (6) towns have a heliport for regular flights and larger settlements have a helipad (40 helipads in total) for evacuation purposes.

Health status Although the main burden of diseases in Greenland is due to non-communicable diseases, the country is still affected by communicable diseases such as tuberculosis and, sexually transmitted infections (STIs). The occurrence of cancer, cardiovascular disease, diabetes and obesity has risen significantly over the past two decades.

Health services All medical treatment in Greenland is free including medicine and dental work. These services are available for both Greenlandic and non-Greenlandic citizens residing in Greenland. This is financed by taxes ( www.nanoq.gl ).

Social health and vulnerable groups During the consultation with the various informants for the baseline collection, the authorities and key informants identified different groups in the society as vulnerable groups, for example:

• Children, particularly in families with addiction problems • Young families with small children • Unemployed, uneducated young males • Low-income workers (low income SIK members) The list is not extensive and do not reflect any priority.

Cultural and Natural Values

Hunting and fishing have significant cultural importance for the Greenlanders, although traditional communities no longer rely on hunting and fishing for their survival. However, the activities are an important aspect of the Greenlandic traditional way of life, and of the Greenlanders’ identity. Even though the subsistence hunting is decreasing, the recreating hunting is mainly for own consumption.

Use of natural resources in Greenland The biological resources in Greenland are exploited to a very large degree, traditionally by Greenlanders. The total number of species consumed in all of Greenland in relation to fishery and hunting is small compared to the biodiversity. The exploited species includes fish, birds, marine and terrestrial mammals, invertebrates and plants (ISUA Local Study, 2009).

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On land, caribou is the species most often hunted in the project area by locals, both by fulltime and part-time hunters. The project area is caribou inhabited and locals hunt by boat and foot (as using motor driven on land transport is illegal in connection with hunting) in August through September. The area is popular, especially by part-time and first-time hunters as the likelihood of encountering caribou is very high. Only full-time hunters are allowed to sell the meat to “brættet” in Nuuk or to the meat factory in Maniitsoq. Part-time hunters must only hunt for own usage of the meat.

According to surveys done by HS Analyse in 2011 for visits by locals in 2010 there are 31 professional hunters, 125 recreational hunters and 11 individuals from Kapisillit that visited the ISUA project area (corresponding to 63, 60 and 46 % respondents). Most of these visits were done once or twice in 2010.

Sites of historical and cultural importance in the project area Many archaeological sites of importance have found over the years by the Greenland National Museum and Archives. These sites are partly findings from traditional caribou hunting activities. The access road and potential activity areas have been or are being investigated by the museum.

Besides the archaeological and historical perspectives, Mount ISUA itself, or Isukasia as it is called in Greenland, is considered a geological singularity, probably the most ancient mountain and iron deposit in the world, estimated to be 3760 millions of years old (Appel et.al. ,2001;Moorbath et.al, 1973). This particular site of scientific importance is not located in an area that is likely to have any activities from the ISUA iron project (Department of Nature and Environment, Personal communication, 2010).

Potential impacts and benefits

Taxes and Revenues The project will contribute to increased public revenues through paid fees and taxes, including dividend and corporation taxes, income tax from the employees and the contractors and corporate/income tax when using local companies. It is estimated that London Mining will start pay dividend tax after one year of operation and corporation tax after about 3½ years of operation after final amortization of investments.

Revenues to Greenland Government will start to appear from the start of construction works as income taxes paid by construction workers including Greenlandic workers and foreign workers. At the same time, subcontractors to the project will pay taxes of their profits. This applies to both foreign and Greenlandic companies.

Taxes and dues Estimates Estimated Corporate and DKK 28.5 billion (US $4.8 billion) for 15 years Dividend Taxes * of mine life Income taxation of personnel Estimated to be in the order of DKK 3.7 (Construction + Operation) billion (US $641 million, during 15 years of mine life) Table 2 Estimated contributions of the sources * Corporate and Dividend Taxes are estimated by BFS Engineer based on the Financial Model presented in the Isua Bankable Feasibility Study (SNC-Lavalin, 2012)

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All tax calculations are based on present Greenlandic tax legislation up to the latest amendment on 9 November 2009. Estimated tax revenues have been calculated based on the expected number of workers in connection with the construction and operation of the mine.

For the construction phase the taxes are estimated from the average number of workers and their salaries in the different positions. It is important to note that the minimum salary in the Bankable Feasibility Study satisfies the terms defined in the new Large Scale Project Act (Act no 25 of 18 December 2012 on construction at Large scale projects) (see also section 2.2.1 and 2.3).

The corporation tax is estimated based on the basis of 30% of profits, with the forecasted market prices of iron ore as well as amortization of investments and costs. The taxable profit of London Mining, and thereby tax revenues to Greenland, will be affected, among other things, by fluctuations in the sale prices of iron concentrate. If the price decreases, the taxable profit and thereby corporation taxes paid to Greenland will decrease. On the other hand, should the price increases, the tax revenues will increase correspondingly. In this regard, Greenlandic tax revenues will ride together with London Mining either the positive or negative impacts of market fluctuations of iron concentrate prices.

It is to be noted that in the current SIA report, the tax revenue estimates are carried out based on the original project schedule as per the BFS. Should the project be delayed due to reasons such as financing and permitting etc., the starting year of the construction will also delay. However, the total durations for construction and the operation are expected to be the same. This implies that the estimated tax revenues would be the same only with a delay corresponding to the starting time.

In addition to the direct revenues to Greenland from personal taxes, other revenues would be generated from indirect employment and indirect business activities that will support the operation of the mine. Furthermore, will some of the employees at the project spend some earnings on consumption in Greenland which will also create new jobs and thus create further taxes and revenues (induced jobs). The total jobs (direct, indirect and induced jobs) have been estimated with the use of the so-called multiplier employment factor.

A multiplier employment factor defines how many new and indirect jobs will be created for every person directly employed in the project. In this project a multiplier effect of 1.3 ± 20% is envisioned.

The total salary (generated tax base) from direct jobs over the entire project period is estimated to be DKK 9.48 Billion (US $1.62 Billion). Applying the multiplier the factor the total tax base generated through direct, the indirect and induced jobs are then estimated to DKK 12.34 Billion ± 20% (US $2.11 Billion ±20%).

Direct Employment to be created by Isua Project The project will result in significant employment during both construction and operation phases. The following table summarizes the expected employment, disaggregated to local and international staff.

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Expected direct jobs Expected indirect jobs Total Local (max) Construction Phase 2012 300 7 -10% of 210-430 1 2013 2000 total 2014 3300 2015 2000 Operations Phase 680-810 20%-55% 180-240 2 15 years Table 3 Estimated employment during the lifetime of the project

1 Calculated with a factor of 1.3 of local jobs plus 0.2 more from year 2013 to cover international workforce on transit or short term in Nuuk. 2 Does not include potential expansion on the construction sector in Nuuk.

Assuming this level of construction labour can be found and mobilized in Greenland, the direct employment impact during the construction phase can be considered medium positive and will be perceived mainly at the local level for a period of approximately three years.

The impacts of the direct local employment during construction is valuated as positive medium, as long as the expected share of local employment is not limited by local availability. The impact will be perceived at national level for a period of 3 years and will continue, extend and expand into the period of the mine life.

A majority of job positions during operations phase are available to local workers, and measures will be taken in order to maximize the share of local employment.

The number of job positions created by the project is high, particularly for Greenland, but due to the existing barriers for the achievement of the expected percentage of local workforce, it is conservatively characterized as Medium positive.

Indirect Employment to be created by Isua project During construction phase , a number of indirect jobs will be created as consequence of the provision of logistic services, other services and package contracts as described in the following section.

Given the lack of previous experience in Greenland with projects of this type and size, there is uncertainty associated with the multiplier factor to estimate the creation of indirect employment. This needs to be monitored in collaboration with local authorities and employees and employers organizations, having into account the potential synergic effects of other oil and mining projects in Greenland. With the existing information at the time of preparing the SIA, the impact on indirect employment is valuated as medium positive during construction and high positive during operation as it will be limited by how fast local businesses can be ready to accommodate the project’s needs during construction phase. These positive effects are expected to extend and continue into the 15 years of operation and potentially beyond.

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While the duration of the employment will cease together with the project, the benefits related to employment, such as enhancement of qualifications and experience, pension and savings, etc. will last beyond the employment time.

Local business and economy during Construction Local business life is expected to be one of the area’s most positively affected by the ISUA project, as the opportunities created by the project are not only significant in volume, but also very diverse and targeting different segments of the society and local business life.

There will be a number of opportunities for local business provided by the project during both the construction and operation phases. The following table shows the contract packages that will be up for bid.

Proposed local packages Content of the package

Camp and Logistic Supporting Logistic services, camp operations and general supports

Construction Camps Construction of temporary and construction camp

Laydown areas and preparation Lay-down area, temporary wharf/landing area, works at the port site preparation constructions

General Site Services Communications, Health&Safety, First Aid, Site Security, Site traffic control, Site administration, Monitoring programs

Providing charter flights, helicopter services Local air and sea transportations and seas transportations for construction teams

Field Drilling Geological and Geotechnical drilling

Sub-contractor or leading in construction of Permanent Camps two permanent accommodation complexes: one in port area and one at the plant area

Mine area pre-stripping and mine road Mine Pre-Stripping construction, 2014-2015

Table 4 Summary of potential local contract packages during construction and operation

The ultimate impact on the business environment in Greenland life will be determined by the capacity of local companies to respond to such opportunities and be able to provide timely services and products of the required quality and at competitive prices. A highly probable scenario is that international companies, (especially Danish ones) and providers of services and products specifically for the mining industry will look to establish themselves in Greenland in partnership with local companies or through local resource persons.

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Business sectors or areas that are expected to be created or enhanced as an indirect consequence of the project may include:

• Private primary education and day care services • Private health services • Private English/Greenlandic teaching • Private counseling (alcohol and other addictions, family or couple therapy, career development, etc.) • Business for large scale recycling and re-use of solid wastes; • Arts, crafts and entertainment • Tourism and free time activities

The local business activity that is expected to develop during the construction phase will keep expanding, consolidating during the years of the operation phase thus insuring the sustainability to the many benefits: economic, business growth, employment, job training, growing experience and capabilities of local enterprises. The range of business opportunities during operation is also expected to increase in diversity and is therefore considered high medium, with possibilities of becoming high positive depending on the final share of local business on the opportunities created.

The possible benefits and impacts from transporting the workers by boat through Nuuk are not quantifiable because the transit of workers is expected to be done straight from the port of Nuuk to the airport, and under the control and supervision of mine safety officers. This option or scenario has not been discussed with local stakeholders and informants before the public hearings; therefore the possible impacts are assessed conservatively to be negative.

Conflicts and Synergies with Other Economic Sectors Building and construction sectors in Greenland mainly operate during the warmer months, with workers experiencing unemployment or part time employment 3-4 months a year. It is likely that some of the workers from the construction sector (including carpenters, electricians, etc.) could look for opportunities to join the workforce involved in the activities of the ISUA Project.

Some of the synergies identified so far with other economic sectors include:

• Increasing volume of business opportunities for the on shore business and construction sectors • Positive potential opportunities for synergy with other oil and mining projects • Positive synergy with tourism activities and spare time services and goods

Some of the conflicts identified so far with other economic sectors include:

• Competition for qualified workers, including risks of attracting the most qualified and experienced people from the public sector, leaving a vacuum during the time that will take for the new generation to upgrade their capacity and gain experience

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Competition for qualified workers is likely to be the biggest conflict with construction, oil, mining and public sector. It is not likely to be mitigated from the project. Development in this area should be monitored.

It is difficult to predict at this point the amount of impact the project can generate on tourism and fishing as this has not been experienced in the past among mining workers in Greenland, only the top management may take these opportunities. As part of the Impact and Benefit Agreement different scenarios should be discussed, as well as recommendations for monitoring during the life time of the project to identify and react both to eventual conflicts or synergies.

Traditional livelihood Traditional livelihoods in Greenland in general and especially the Nuuk fjord are related to hunting and fishing. The ISUA project area has been traditionally used for caribou hunting, as demonstrated by the archaeological findings south from the mine site (Archaeological report 2009), stories and traditions that last until today.

Potential impact of the project on the caribou hunting activities, both on professional and recreational hunting were identified as main concerns among the local communities during scoping and further consultations. The significance of the impact of the project in the caribou population during construction and operation has been evaluated in the EIA of the project as low under the design measures which the project already includes promote the movements of caribou in their natural habitat on both sides of the access road (Orbicon, 2011).

Based on the EIA assessment of the impacts on caribou population, and based on the assessment of the economic, social and cultural importance of caribou hunting in the Nuuk area, the significance of the impact on traditional livelihoods can be assessed as low negative during construction and the operations phase. The impact is considered low for the inhabitants of Kapisillit. This evaluation includes concerns and perceptions of impacts identified during scoping and baseline consultations.

The impact is expected to last from construction throughout the life of the project and closing phase, and will manifest immediately. From a livelihood perspective, it is expected that, given the relative small area of disturbance of the project and ample alternative habitats, hunters will adapt to the potential changes of size and behavior of caribou in the project area, preserve this form for livelihood and continue caribou hunting and secondary activities in the area, in similar degree as before the project. With appropriate mitigation measures, the impact can be kept low for both construction and operation.

The final impact of the construction activities on hunting and fishing activities, both for professional and recreational hunters in Nuuk and Kapisillit needs to be monitored and evaluated in order to implement corrective measures as necessary.

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Education and Training London Mining will make a significant commitment to the people for their training and professional development. The level of impact on the educational levels depends largely on the following:

• Increased specific capacity for working in the extractive industry of local workers • Availability of apprenticeship positions, in the range of 30 to 50 per year (subject to the local demand for apprenticeship positions), to benefit the vocational and higher education institutions such as the School of Minerals and Petroleum, Arctic Technology, Navigational school, INUILI (cooking school) and their advanced students • Increased motivation and interest towards careers related to the mining industry and upgrading of language, administrative and technical qualifications • Increased administrative focus on relevant training and local employment opportunities in the mining sector

The potential impact on education and training is assessed to be positive medium, The realization of this depends on the level of successful cooperation with the local education institutions and the capacity of these to respond to the challenges and opportunities provided by the project. The SIA Report contains approximately 6 pages of description on plans for education and training.

The skills developed during the engagement of the project will be relevant beyond the life time of the project, as well as the positive impacts of administrative focus on specific education and local employment opportunities.

Public Services and development plans Potential impacts of the project during construction and operation on public services and development plans has been evaluated at Municipal and national level.

Public services that are expected to be influenced by the project during the construction phase include:

• Pressure on administration of construction permits for the construction phase • Increase work load at customs and taxation office • Increased work load of immigration authorities and inspectors in Greenland • Increased work for the Police of Greenland, including custom control of the international workforce travelling in and out of Greenland, other police tasks such as investigations and task in relation to rescue activities • Moderate increase in demand for health services • Increased air traffic in Nuuk Airport • Maritime freight traffic and activities in the ports of Nuuk, both directly and indirectly related to the project • Solid Wastes treatment

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All the areas where the ISUA project could create additional strain on the development plans: housing, air traffic, maritime freight, treatment of hazardous waste and focus on improvement of vocational education and employability of local workers have been identified as areas needing mid-term solutions by the Greenland Government and Kommuneqarfik Sermersooq independent of the project.

Housing may be a major challenge for the project and the targets of local employment. The exercise of estimating the housing needs related to the project needs to be done carefully and in coordination with the Municipality.

Public services that will experience increased pressure from the project during prior to the commencement of the construction phase include:

• Pressure on administration of construction permits for the construction phase • Increase work load at customs and taxation office • Increased work load for immigration authorities and officers

Public services that are likely to experience an increased demand during operations include the customs and taxation office, police, as well as health care services and day care services, in the event that the workers move to Nuuk with their families. The impact on these services is not expected to be significant for an immigration of around 50 families -100 singles.

The Committee on Infrastructure and Environment of Kommuneqarfik Sermersooq raised two concerns (waste management and use of the port in Nuuk) as potential impact on development plans and public services. London Mining and Kommuneqarfik Sermersooq will continuously be in dialogue on the details of the waste management and use of the port in Nuuk.

Social Aspects The following social aspects have been identified as possible key social issues of the ISUA Project:

• Changes in demography and population • Social conflicts, potentially associated with a foreign workforce • Vulnerable groups • Potential criminality

During consultation conducted for the baseline, four main vulnerable groups in the Greenlandic society were identified:

• Children, particularly in families with addiction problems • Unemployed, uneducated young males • Low-income workers (low income SIK members) • Young families with small children

No direct impacts on any vulnerable group are expected. However, indirect negative impacts may occur in regards to children in vulnerable families, should the most well- functioning parent take employment at the ISUA project and be absent from day to day life during the 3 weeks at site as per rotation schemes.

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Another impact on the vulnerable groups is related to the project’s ability to attract the most capable workers. It is expected that the mobility of most capable workers to the new job opportunities would cause vulnerable groups to be excluded from the development and not be able to benefit from the new opportunities created by the project (e.g. salary boost, competence development) and thereby experience a relative decline in their position compared to their fellow citizens.

One of the positive social impacts of the ISUA project is expected to be a decrease in emigration rates and the potential return of a number of newly graduated students to Greenland, due to improved employment opportunities created by the project. During project operation, the potential immigration of highly skilled migrants and their families, both Greenlanders and foreigners alike are perceived as significant, positive and medium to long term. Nevertheless, impacts on the price and availability of housing is perceived as a significant risk and the need to address the health profile of international workers was mentioned as an important factor in social risks associated with immigration, both during construction and operation.

Analysis of the debate in the media during the last 14 months (Sermitsiaq 30 August 2011; 19 Jan 2012; 25 Nov 2011 and Nuuk TV 25 Jan 2012) as well as concerns expressed during the public information meetings seems to indicate that a potential international migrant workforce during the construction period, and its associated risk of social conflicts was perceived as a major concern by the public opinion. This impact is evaluated as negative medium, temporary and local.

The impacts on social aspects during construction are considered to be negative low during construction. The assessment is primarily based on the potential risks of the extensive number of international male workers during the construction phase and the prevailing perception of social dumping in the use of international workers among the local people, and the fear that workers will remain in Greenland for other business, after the construction is over. Mitigation to this potential impacts factors include the distance and limited access of the workers camp from Nuuk and Kapisillit.

The impact on social aspects during operation is considered to vary from positive low to negative medium. Again the assessment is based on available information and consultation. With effective measures the impact on social aspects during operation may swiftly change to be primarily positive.

Health and Safety The risk of accidents during construction is mostly related to operation of heavy machinery, use of explosives and harsh weather conditions. Adverse weather conditions can lead to fatal air transport accidents.

Hunters and fishermen have highlighted the risk of accidents involving vessels during the ore loading and transportation, due to the wind and ice conditions, and the navigational challenges of the fjord and port location. These inputs were followed by recommendation of having experienced Greenlandic navigators with a thorough knowledge of these waters, in order to direct/support the traffic of vessels through the fjord and communicating with the small fishing vessels to avoid accidents.

Implementation of the proposed Health and Safety Plans and their corresponding training, procedures and monitoring for all workers, contractors and visitors will certainly reduce the likelihood and severity of accidents in the mining and processing operations.

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In order to maintain an adequate HSE standard on the site from the construction through to operations, the Project Management Team will ensure a good health and safety plan. A detailed HSE plan will also help in ensuring that the project is well managed to avoid/minimize unexpected costs and problems. The ultimate objective of the HSE plan is to ensure that the project is safe to build, operate, maintain and deliver good value.

In the ISUA working environment, employees will be required to be protected or trained when coming in contact with occupational risks.

It is of vital importance that the security and access control into and out of an operational area is managed to the strictest of conditions to ensure the safety of project personnel and protection of assets.

Health Management is provided to project workforce by means of an on-site occupational healthcare provider, offering expert medical advice, dynamic health-promotion campaigns and on-site clinical support. This ensures that specific health care needs to be targeted as well as taking a flexible approach to managing the health and wellbeing of project personnel.

Health and Health Services All workers and staff involved in the project will be required to have a private health insurance, in order to cover the potential health diagnostic or treatment expenses that could be needed in Greenland. While financially the use of health services may not be a problem, the additional pressure in a system working already at the limit will be noticeable. The amount of foreign workers which are expected to be involved in the construction activities is high and therefore likelihood of use of the public health service is considerable.

All employees during the operations phase will undergo a pre-employment medical check and annual medical examination before the working season. There will be trained health personnel on site during construction and operations that are able to provide first aid services and consultation on simple health issues. Health problems which require more specialized diagnosis or treatment will be treated at medical facilities in Nuuk.

All international workers will be covered by private health insurance. Costs to the public health system are therefore expected to be negligible.

It is expected that an increasing demand for private health services will prevail e.g. on dentists and physiotherapist and thus stimulate the marked for more diverse private health services in Nuuk. Furthermore, a positive pressure for higher quality in health services in general might influence an upgrading in the quality of health services.

The ISUA iron project is unlikely to have any influence in the public health of Kapisillit or other towns and settlements of Greenland apart from Nuuk. The assessment of these sections is limited to potential impacts and risk for the population of Nuuk, the employees of the project and their families when relevant.

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Concerns regarding the health profile of international staff for both construction and operation have been expressed during consultation, especially regarding sexual health. One important risk during construction is expected to be related to transmission of STIs and tuberculosis, abortions and teen pregnancies, mainly via prostitution and sexual contact with the local population. The risk of contact is mitigated by the distance of the camp from Nuuk and the limited possibilities for accessing the town, except for the occasional layovers while travelling through Nuuk.

During operation, potential positive impacts in diet and life style, as well as risk of incidence of alcohol and intoxicants abuse, etc. during the home stay after long period in a dry camp has been identified.

Based on the pre-cautionary principle and the advantages of a strong preventive and corrective health and life style campaigns among the workers, measures are proposed in order to prevent as far as possible the occurrence of negative impacts on public health, and even contribute to a better local life standard.

Life in the camp presents a good opportunity to address diet, lifestyle and substance abuse issues, For example by strengthening the awareness campaigns already in place in the local community and developing strategies and availability of counseling to promote and support healthy choices within the camp.

Cultural and natural values The National Museum and Archives has been involved in surveying the areas before use for roads and construction sites and has conducted surveys over 4 seasons (2008, 2009, 2011 and 2012). Based on these surveys, the National Museum concluded that the construction of the ISUA project can be accomplished without damaging the bulk of the recorded archeological structures.

The impact on the Isukasia oldest rock formation is low as the access road is placed outside of the formation.

Key Benefits and Opportunities The key benefits and opportunities during the construction phase are within the economic environment such as direct and indirect employment as well as local business opportunities and income taxes as can be seen in the next table for the construction phase.

The key benefits and opportunities during the operation phase (see second table below for operation phase) are the same as above mentioned including education and training, demography and population, and public health.

The benefits and opportunities, especially for the local business life, can be optimized further with some mitigation measures.

Key Risks and Negative Impacts The key risks and negative impacts are on a more social and health level such as social conflicts, vulnerable groups, risk for accidents and access to natural areas during the construction phase. Furthermore, there will be a pressure on the development plans and public service.

The key risk and negative impacts during the operation phase are on the traditional livelihoods, conflicts with other sectors and the above mentioned.

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The risk and negative impacts can be mitigated to reach low negative impacts for all of the above, except for conflicts with other sectors as it is expected that there will be other development projects developed.

Impact and mitigation tables Anticipated social impacts are summarised in the following tables with colours indicating their magnitude and significance both before and after applying measures. The measures are either mitigation measures to minimize the potential negative impacts or measures to maximize the benefits. The SIA also contains a corresponding monitoring and evaluation plan with the aim to ensure evaluation of the impacts and benefits of the projects and effectiveness of the mitigations proposed. The table below gives an overview of the assessnments.

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Anticipated impacts – Construction phase Anticipated impacts – Operation phase

Residual Impact after Impact Category Expected Impact Expected Impact Residual Impact after mitigation mitigation

Economic environment

Taxes and revenues +L No mitigation required +H No mitigation required

Direct employment +M No mitigation required/proposed +M No mitigation required/proposed measures measures to maximize benefits to maximize benefits

Indirect employment +M No mitigation required/proposed +H No mitigation required/proposed measures measures to maximize benefits to maximize benefits

Local business life & economy +M No mitigation required/proposed +M No mitigation required/proposed measures measures to maximize benefits to maximize benefits

Mitigations to be implemented on a non- Conflict/synergies with other sectors -L No mitigation required -M project level

Traditional livelihood -L -L -L -L

Education and training +M No mitigation required/proposed +H No mitigation required/proposed measures measure to maximize benefits to maximize benefits

Public services and development plans -M -L -M -L

Social aspects

Demography and population -L -L +M No mitigation required/proposed measures to maximize benefits

Social conflicts -M -L -M -L

Vulnerable groups Not significant No mitigation required -L -L

Health

Occupational health and risk of accidents -M -L -M -L

Public health and quality of life -M -L +L No mitigation required/proposed measures to maximize benefits

Cultural and natural values

Sites of monumental or cultural importance Not significant No mitigation required Not significant No mitigation required

Access to natural areas -L -L -L -L

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Stakeholders consultations and participation

From Year 2008 to 2012, London Mining has implemented an extensive communication plan and involvement with the local community.

• London Mining has set up a Local Advisory Committee for the Isua project that gathers leaders of the local community namely the two Greenlandic Employer Associations, the Labor Union, the Business Council of the Municipality of Nuuk, the Hunters and Fishermen Association, local Legal cabinet. The Isua Advisory Committee meets on a regular basis to share information on the progress of the Isua project and to share concerns, ideas and suggestions from the community. • Since November 2011, London Mining has opened a Public Information Center in Nuuk where everyone can come without appointment to ask questions, get information and enquire about job opportunities. The Public Information Center is opened daily in the afternoon for the Public to stop by. • In 2011 and 2012, London Mining has organized 10 Public Consultations Workshops to discuss Environmental, Social and Technical aspects of the Isua Project with the citizens. • In 2010 and 2011, London Mining has held 3 large Public Information Meetings with media coverage and presentations to the Public.

Furthermore, as part of the SIA work from 2008 to 2011, numerous workshops, meetings and interviews were organized with all civil organizations, groups and various stakeholders from the local Community. These are presented in Chapter 9 of the SIA.

On 16 August the draft SIA Report was published a the official hearing portal of Nanoq (www.nanoq.gl ). During the the period from 27 August 2012 to 7 October 2012 the Greenland Bureau of Minerals and Petroleum (BMP) organized four public Hearings. This final SIA report accounts for the comments and questions, when applicable, received from the Public Hearings.

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1 INTRODUCTION

This report is the Social Impact Assessment (SIA) for the ISUA Iron Ore project located 150 km northeast of Nuuk in Greenland. The SIA report is available in three languages Greenlandic, Danish and English. As the Greenlandic and Danish versions are translated from the English version, the English version is considered to be the official version.

London Mining Plc (London Mining), through its wholly owned subsidiary London Mining Greenland A/S, is planning to develop it’s ISUA Iron Ore project. The project includes the development of an open pit mine, ore processing plant, product transfer system to the port by a slurry pipeline, port facilities, a 105 km long access road connecting the mine site and the port facility, and all necessary facilities and infrastructures. The SIA is based on a design of the project for 15 million tons per annum (MTPA) of iron ore concentrate, containing 70.2% Fe. The life of the mine is expected to be 15 years, although it can be extended depending on further drilling exploration to convert further inferred resources into indicated resources.

Figure 1-1 Location of the ISUA Project in Greenland

1.1 Objectives and Process of a SIA

This SIA has been produced by Grontmij A/S on behalf of London Mining according to the Guidelines for Social Impact Assessment for mining projects in Greenland, Bureau of Minerals and Petroleum (BMP), November 2009 (the Guidelines).

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According to the Guidelines, the objectives of the SIA process are:

• To engage all relevant stakeholders in consultations and public hearings about the Project • To provide a detailed description and analysis of the social pre-project baseline situation as a basis for planning, mitigation and future monitoring of the Project; • To provide an assessment based on collected baseline data to identify both positive and negative social impacts of the Project, at both the local and national level; • To optimize positive impacts and mitigate negative impacts from the activities throughout the project lifetime; • To develop a Benefit and Impact Plan for implementation as part of the Impact Benefit agreement (IBA) to be put in place for the Project.

Figure 1-2 shows the SIA Process as specified by the BMP, indicating where in the overall process this report is located.

Scoping & ToR BMP review and comments

Relevant material for submission, e.g.: Stakeholder Participation Strategy It is strongly recommended to Scoping report g keep BMP updated and n ri Background material a consulted throughout the e Minimum 1-2 h l year(s) process a rm DRAFT SIA submitted o F This report BMP review and hearing IBA negotiations Revised FINAL SIA submitted between BMP, municipality and licensee BMP review and approval

Impact Benefit Agreement (IBA) signed

Implementation, monitoring and evaluation of Impact Benefit Agreement through: Stakeholder participation Benefit and Impact Plan Monitoring Plan Evaluation Plan

* Background material includes relevant studies, reports, memos etc.

Source: Guidelines for Social Impact Assessments for mining projects in Greenland, Bureau of Minerals and Petroleum, November 2009 Figure 1-2 The SIA Process

The SIA process for the ISUA Iron Ore Project started in October 2009 with the elaboration of a Scoping document. Scoping consultations with stakeholders in Nuuk were conducted in November 2009 (reference to section 9.0 for a full list of workshops and consultations held). A first draft of the Terms of Reference (ToR) was presented to BMP in February 2010. The ToR was updated after the Pre-feasibility study was issued and re- sent to the authorities for comments and approval in November 2010.

The SIA covers the following stages in the ISUA Iron Ore Project:

• The construction phase • The operation phase.

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A description of the Closure Plan for the Isua project is presented in the Environmental Impact Assessment (EIA) report; A summary of the Closure Plan is also presented in Appendix 6 of this report. The study covers the areas potentially impacted by the mining operations towns and settlements where the impacts and benefits of employment, business opportunities and developments directly and indirectly created by the project are expected to be noticeable.

1.2 Study Area for the SIA of the Project

The geographical areas assessed in the SIA are defined according to the following terms:

• ‘Project Area’ means the area where the mine facilities and infrastructures are to be constructed i.e. open pit mine area, process plant facilities, conveyors, access road, pipelines, a potential air strip, port site, etc. This area is also sometimes referred to as ‘the footprint’ of the project. • ‘Study Area’ means a wider area where socio-economic and cultural conditions have been investigated in order to have broader perspectives of the social conditions, particularly the traditional livelihood and hunting activities. In the ISUA project, this area is approximately confined to the area shown in the Figure1.3. Furthermore, it includes the capital of Nuuk and the settlement of Kapisillit in the municipality of Kommuneqarfik Sermersooq and selected features of the municipality of Qeqqata Kommunia. • ‘Licence Area’ means the area granted by the Greenland Government to carry out exploration activities for mineral resources.

The SIA is not assessing any further processing of the product abroad. These conditions are undefined because the product will be sold on the global market. Neither will the SIA assess the substitution (if any) of an ongoing iron mining exploitation.

1.2.1 Areas of influence

1. Kapisillit (population of 86), the settlement in closest proximity to the project and the Greenlandic capital, Nuuk (population of 15,862 are considered the primary areas of influence for the purpose of the study.

2. The secondary area of influence will be the municipality of Kommuneqarfik Sermersooq in general.

3. In addition, the towns of Sisimiut, Manitsoq and Kangerlussuaq in Qeqqata Kommunia as well as other towns in Greenland where workers may come from or can potentially benefit or be affected by the project are included as secondary areas of influence. This inclusion has been done so at the request of the BMP.

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Figure 1-3 Map showing the Municipalities and main towns in Greenland.

1.2.2 Short description of the SIA study area

The ISUA project is located within the municipality of Kommuneqarfik Sermersooq, in the southwestern part of Greenland. No permanent settlements are found in the project area, although a few hunting cabins are located along the coast which are mainly used during the caribou hunting season in autumn and winter. The nearest town to the study area is Nuuk (the headland) with a population of 15,862 inhabitants. The village Qoornoq on Qoornup/Bjørneø which is located about 10 km south of the study area was abandoned in 1971, but many of the houses are still being used during the summer months and in the hunting season (Orbicon, Local use of natural resources in the ISUA Iron Ore Mining Area, 2009).

The climate of this region of Greenland benefits from the ocean currents that the Gulf Stream provides. Further, it is south of the Arctic Circle, and the waters are mainly ice free.

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Local subsistence fishery takes place along the coast of the study area. The most common species are Arctic Char, Capelin, Lumpsucker and Greenland Halibut.(Orbicon, Local use of natural resources in the ISUA Iron Ore Mining Area, 2009).

The study area is frequented by caribou hunters in the autumn and winter. It is mainly citizens from Nuuk that hunt in the Nuuk fjord area, including the study area. The overwhelming majority of Caribous are shot within 20 km of the coast (Johansen et al. 2008). Hunting of birds also takes place in the study area. In particular, Eiders are shot along the coast, mainly in the Qussuk Fjord. Some hunting of Ptarmigan also takes place. (Orbicon, Local use of natural resources in the ISUA Iron Ore Mining Area, 2009).

The vegetation in the study area is to a large extent influenced by temperature and precipitation, with some variation in the region caused by elevation, exposure, valley systems etc. In the highland around the ISUA area sparse vegetation is found with vegetation types like dwarf-bush heath, fell-field and snow patch. (Orbicon, Local use of natural resources in the ISUA Iron Ore Mining Area, 2009).

Municipality of Kommuneqarfik Sermersooq Kommuneqarfik Sermersooq is the southern-eastern municipality where the project area is located. It has approximately 21,000 inhabitants, of which 15,862 of them reside in Nuuk. In addition, 86 inhabitants live in the settlement Kapisillit and around 260 in the settlement Qeqertarsuatsiaat. Nuuk is Greenland’s largest town, and is where the national parliament is located along with associated ministries, several institutions, hospitals, freight companies , communications, educational establishments, a port and airport. Kommuneqarfik Sermersooq also contains the towns of Paamiut, Ivittuut, Tassiilaq and Illoqqortoormiut.

Primary occupations in the settlements are hunting and fishing. Qeqertarsuatsiaat is situated outside the immediate region, and will therefore not be discussed further in this context. Kapisillit is Nuup Kangerlua’s only inhabited village and is one of the few hunting and fishing societies positioned far from the open sea. The village is approximately 100 km east-northeast of Nuuk. There also exists an area which contains recreational and secondary homes east of the village, called “Nuussuaq”. The village can be accessed regularly by the coastal passenger boat. During the summer the village serves as a departure point for trekking and recreational fishing. The village also has alternatives for overnight accommodation (Nuuk Tourism). The ISUA project is located within Kommuneqarfik Sermersooq.

Occupational hunters and fishermen from Kapisillit make use of a larger area for hunting and fishing. During winter time most of the transportation is by snowmobile and by boat during summer time. Itinnera, which is situated approximately 10 km southwest of Kapisillit, used to be a place for caribou farming. This was also the case for Neriunaq, situated north of Kapisillit. Today, Neriunaq instead has some sheep farming.

Municipality of Qeqqata Kommunia Qeqqata Kommunia is located in the western part of Greenland. With a population of approximately 9,500 inhabitants, roughly 1,400 live in settlements. The towns in the municipality are inhabited with about 2,700 inhabitants in Maniitsoq, 5,500 in Sisimiut, and 550 in Kangaatsiaq (as of January 2011). In Sisimiut it is possible to have sled dogs . One of the busiest Greenlandic Atlantic airports is located in Kangerlussuaq and is a center for air traffic (civil passengers and military).

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The primary industry in the municipality is fishing by trawlers, cutters and small boats. Tourism and hunting are also important for the community.

The town of Sisimiut is an important educational center where, among others, the School of Minerals and Petroleum is located (please refer to section 5.9.3 for more information on the school) and ARTEK (Arctic Technology of the Technical University of Denmark).

1.3 Acknowledgements

A full list of all the public meetings and consultations held during the SIA process (2009- 2012) can be found in Chapter 9. The authors would like to thank the organizations and people who collaborated in the SIA process responding to the questions and providing information and their views. - BMP - Government of Greenland: Domestic Affairs, Nature and Environment - Government of Greenland: Social Affairs - Government of Greenland: Accommodation and infrastructure - Government of Greenland: Culture, education and research - Government of Greenland: Working Environment Authority - Government of Greenland: Ministry Of Health - PAARISA, Agency for Health and Prevention - Government of Greenland: Ministry of Industry and Labour - Kom. Sermersooq Dep. Nature and sustainability - Kom. Sermersooq Dep. Business development - Kom. Sermersooq Administration - Kom Sermersooq. Dep. For Construction and Environment - Kom. Sermersooq, Dep. of Labour Market - KANUKOKA - The National Museum - Tax Agency - NUSUKA - SIK - GA - KNAPK - NAPP - Greenland Mining Services - Geo Arctic Construction ApS - ASIAQ - Xploration Services - SLICA project – Ilimmarfik, University of Greenland - Researchers – Ilisimatusarfik University of Greenland - Greenland Institute of Natural Resources - Qaqiffik - Nukissiorfiit

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2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK RELATED TO THE SIA OF THE PROJECT

2.1 General political situation in Greenland

Greenland has had home rule from Denmark since 1979. On June 21st, 2009, the new constitution was introduced after the referendum for the Government of Greenland in November 2008, and country status then changed to “self-rule”. Greenlandic is now the only official language in Greenland. Under the Government of Greenland, Greenland will become a subject under international law in matters that are within its jurisdiction. Greenland can then enter into agreements and establish bilateral and multilateral relationships with other states. Greenlandic citizens have exactly the same rights as any other person born in the Kingdom of Denmark (Rigsfællesskabet). Further, two Greenlandic-elected representatives are elected to the Danish national parliament. Greenland is member of the Nordic Council and Nordic Council of Ministries. This membership with other Nordic Countries and autonomous regions facilitates parliamentary cooperation among the members, particularly in relation to nature and environmental issues.

Greenland has been member of the Arctic Council since 1996. The Inuit Circumpolar Council, ICC is also present in Greenland.

2.2 Legal Framework

This section lists and describes the regulations and guidelines relevant to the project, particularly for the issues and areas of interest for the Social Impact Assessment of the ISUA Iron Ore Project.

2.2.1 Greenlandic legislation

The main legislation governing the ISUA project is the Act no. 7 of 7 December 2009 on Minerals and Resources (the Mineral Resources Act), which came into force on January 1, 2010.

Title Summary & Relevan ce Year Greenland Parliament Act no. 7 This Greenland Parliament Act aims to ensure 2009 of 7 December 2009 on mineral appropriate exploitation of mineral resources, use of and resources and mineral the subsoil, regulation of matters of importance to activities (the Mineral Resources mineral resource activities and subsoil activities. Act). Furthermore it aim at ensuring that activities under the Act are performed in a sound manner as regards to safety, health, the environment, resource exploitation and social sustainability, and appropriately and according to acknowledged best international practices under similar conditions. Act no. 7 was created on December 7, 2009 and came into force on January 1, 2010. Greenland Parliament Act no. The Act reflects special salary and working conditions 2012 25 of 18 December 2012 on which apply for certain projects in Greenland with a construction for large scale total sum of construction cost of more than 5 billion projects DDK and where the project requires a workforce which is not available in Greenland and where the local companies do not have the required technical and economical capacity.

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Act no. 1048 of 26 October 2005 The Greenland Working Environment Act aim at 2005 on Occupational Health and ensuring a safe and healthy working environment Safety (the Greenland Working which shall at any time be in accordance with the Environment) and amendment technical and social development of the Greenland in Act no. 1382 of 23 December. society, and the basis on which the enterprises See also additional Orders listed themselves will be able to solve questions relating to below in section 2.2.2. safety and health under the guidance of the employers' and workers' organizations, and under the guidance and supervision of the Working Environment Authority. Danish Regulation no. 150 Immigration policies. Although immigration rules differ 2001 ”§ 9, stk. 2, nr. 3, i anordning nr. slightly between Denmark and Greenland, visas for 150 af 23. februar 2001 om residency and employment in Greenland must be anmodning om ikrafttræden for applied for through the Danish Foreign Ministry. A Grønland af udlændingeloven special procedure has been established for quick and flexible processing of working and residence permits for workforce involved in oil exploration or other occupations within the extractive industry. Requests of working and resident permits of this nature are sent to the Greenland Government for final decision. Act no. 882 of 25 August 2008 Rules the implementation under Greenland law of the 2008 on Maritime Safety (Sikkerhed til International Convention on safety at Sea (SOLAS, søs) 1974), the international convention for the prevention of pollution from ships, 1973 and the modified protocol (MARPOL), 1978. Greenland Parliament Act no. The Act regulates the emergency management, 2010 14 of 26 May 2010 on where special attention should be given to paragraph emergency services in 13 which states that in case of an emergency Greenland and fire and situation this has to be coordinated by the Police in explosion prevention Greenland. (Emergency Management Act) Article 24 of the Mineral The article gives rules and guidelines regarding 2000 Resources Act: Rules for field activities with mineral resources in Greenland and work and reporting regarding reporting of the activities and results to the BMP. mineral resources Greenland Parliament Act no 11 The Act serves to protect the ancient relics, finds, 2010 of 19 May 2010 on conservation monuments and buildings. and other heritage protection of cultural relics Greenland Parliament Act no 29 The Act serves to protect the nature of Greenland 2003 of 18 December 2003 on Nature protection Act no. 12 of 2 November 2006 The Acts regulate the taxes in Greenland 2006, on income tax and amendments 2009, of act no 3 of 30 November 20100 2009 and Act no. 20 of 18 November 2010 Table 2-1 Main legislation for the ISUA project

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2.2.2 Orders on Occupational Health and Safety relevant to the project

Title Orders on Occupational Health and Safety relevant to the project Year

Order no. 32 of 23 January 2006, Rest periods and off-time in Greenland 2006 Order no. 151 of 18 April 1972, Installation and use of mechanically operated cranes, 1972 hoists and similar Order no. 155 of 18 April 1972, Pressure tank on ground 1972 Order no. 133 of 5 February 2010, Asbestos 2010 Order no. 363 of 6 April, Education on Occupational Health and Safety 2010 Order no. 395 of 24 June 1986, Order on the Performance of work 1986 Order no. 396 of 24 June 1986, Work with substances and materials (chemicals) 1986 Order no. 398 of 24 June 1986, Technical equipment 1986 Order no. 399 of 24 June 1986, Arrangement of workplaces 1986 Order no. 401 of 24 June 1986, Reporting of work related injuries 1986 Order no. 1168 of October 2007, Work Place Assessment in Greenland 2007 Order no. 1344 of 15 December 2005, Order on the Construction Owner’s obligations 2005 and responsibility Order no. 1347 of 15 December 2005, Work for young people 2005 Order no. 1346 of 15 December 2005, Order on the Occupational Health and Safety 2005, Work in Greenland and amendment in 2010 Order no 364 of 6 April 2010 Order no. 1348 of 15 December 2005, Order on the Arrangement of Construction Sites 2005 and similar Work Places in Greenland Table 2-2 Orders on Occupational Health and Safety relevant to the project NB: All orders are from relevant Greenlandic legislation unless otherwise stated

2.2.3 National guidelines relevant to the project

Title Summary & Relevance Year Guidelines for Social Impact Guidelines prepared to assist mining companies and Nov Assessments for mining projects their consultants in preparing Social Impact 2009 in Greenland Assessments (SIA), describe the role of the BMP, the SIA process and content of the SIA document. BMP Guidelines for preparing an Guidelines for EIA that apply to mining companies. Jan Environmental Impact The report must cover the entire exploitation period 2011 Assessment (EIA) Report for from mine development prior to mine start until Mineral Exploitation in closure and subsequent monitoring period. The Greenland guidelines include requirements on baseline and project specific environmental studies 2-3 years in advance of EIA report preparation. Rules for field work and The rules apply to licensees' field activities regarding 2000 reporting mineral resources (excluding regarding mineral resources hydrocarbons) in Greenland and to reporting to the (excluding hydrocarbons) Greenland Home Rule in Greenland Government's Bureau of Minerals and Petroleum (BMP) on the activities and their results. The Danish Maritime Authority’s The guidelines ensure that the concession holder – 2010 guidelines of 2010 on prior to starting the exploitation activities – must have investigation of navigational carried out a navigational safety investigation of the

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safety issues conditions in the operational phase in connection with calls at ports, facilities, anchorages, etc. in the concession area. The purpose of the investigation is to illustrate that navigation can be carried out in a safe manner. Standard Terms for prospecting Serves under the Mineral Resources Law. Guidelines 2010 Licenses for Minerals (excluding from BMP describing application for prospecting hydrocarbons) in Greenland licenses, rights and rules for prospecting of minerals in Greenland. Standard Terms for Exploration Serves under the Mineral Resources Law. Guidelines 2010 Licenses for Minerals (excluding from BMP describing application for exploration hydrocarbons) in Greenland licenses, rights and rules for exploration of minerals in Greenland. Table 2-3 Greenlandic National Guidelines

2.2.4 International Unions and Conventions

Denmark is signatory of the following conventions and thereby Greenland is also responsible to take this into account.

Title Summary & Relevance Year United Nations Framework The convention aims at protecting, preventing and 1997 Convention on Climate Change reducing global warming by reducing the emissions of greenhouse gases. The convention enforces the Kyoto protocol which came into force in 2005. The Kyoto protocol is a legally binding agreement to reduce greenhouse gas emissions. Convention for the Protection of Aims to conserve and protect cultural heritages from 1972 the World Cultural and National destruction by traditional decay and by changing Heritage (UNESCO / World social and economic conditions. Because Heritage Convention) deterioration or disappearance of any item of cultural or natural heritage constitutes a harmful impoverishment of the heritage of all the nations of the world. International Union for the IUCN, International Union for Conservation of Nature, 1948 Conservation of Nature (IUCN) helps the world find pragmatic solutions to the most pressing environment and development challenges Table 2-4 International Unions and Conventions ratified by Greenland

2.3 Act on Large Scale Projects

The Act on Large Scale Projects (no 25) was approved by Greenland Parliament on December 18, 2012 (Inatsisartutlov nr. 25 af 18. december 2012 om bygge- og anlægsarbejder ved storskalaprojekter) and is in effect since January 1, 2013. The Act provides the legal framework for the definition of Large Scale Project and the construction of such project by using both local and international contractors. The Act on Large Scale projects applies to the ISUA project

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2.4 Taxes and Revenues

This section describes the Greenland legal framework and regulations on taxes and revenues applicable to the project. The impact analysis regarding taxes and revenues to be generated by the project is based on the legal framework described in this section. The estimating and results of the Taxes and Revenues analysis for the construction workers and operation personnel in terms of benefits to Greenland are presented in Section 6.0.

The information presented in this Section is based on the Act on Minerals and Resources (Inatsisartut law no. 7, dated December 7, 2009) which came into force by January 1, 2010, and the Tax Law including available information regarding the latest amendment to the income tax from November 9 2010. The section is divided into concession fees and tax base and taxation.

2.4.1 Concession fees

Under articles 16, 17 and 30 of the Mineral Resources Act no royalties or other exploitation fees will apply to the ISUA project. Tax on profits to be generated by the exploitation will however be applied by the Greenland Government (also refer to section 2.4.2).

2.4.2 Tax regulation

This section contains an account of the corporate taxation in Greenland related to mining activities, as well as an income tax estimate related to employees. The different types of taxes that will be relevant to a limited company domiciled in Greenland are listed below and are supplied by Deloitte and Naalakkersuisut March 2012:

Corporate Taxation

Capital contribution There is no capital contribution tax.

Dividend tax Greenlandic companies are to withhold a dividend tax corresponding to the personal tax in the municipality of registration. For companies with permits under the Mineral Resources Act, the present dividend tax rate is 37%.

Tax losses Companies with exploration or utilization permits under the Mineral Resources Act are entitled to carry forward tax losses without timing limitations.

Corporate tax In general the corporate tax is levied at a flat rate of 31.8% and the rate applies to a resident company as well as a registered branch office of a foreign company. The taxable income is determined on the basis of the profit shown in the statutory annual report, adjusted to comply with the prevailing tax provisions. Corporate tax for companies with a license under the Mineral Act is 30%.

Tax depreciation and amortization can be allocated as follows: • Buildings and related installations are depreciable in a straight line by a maximum 5% per year. • Aircrafts and vessels by maximum 10% per year.

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• All other items like machinery, equipment etc. by max 30% • All assets costing less than DKK 100,000 are depreciable / amortizable in the year of acquisition.

Profit amortization If the taxpayer has calculated a tax profit, it is possible to make further tax amortization of 50% of the profit. The amortization may freely be deducted from the balance in one of the said three amortization/depreciations groups, however, provided that the remaining balance of the group remains positive or DKK zero.

Companies with utilization under the Mineral Resources Act may, when computing their taxable income, deduct any change in the provisions made to ensure that a closure plan can be carried out in a financially viable way.

Licence amortization An amendment to the income tax law passed by the Parliament of Greenland in November 2010, and effective from January 1, 2011 changed the amortization of licences. For mineral licences the amortization is now “pegged” and fixed at the same amount over a period of 4 years.

Transfer prices The tax law now includes specific provisions on documentation of trade between related companies. Agreements between related companies/parties must be documented, including written documentation as to how prices and term are determined for the intercompany transactions.

Thin capitalization rules The tax rules include specific rules on thin capitalization. Basically it is important to note that lending between related companies/parties is to observe the arm’s length principle.

Personnel taxation

The amendment to the income Tax Law in November 2010 introduced a 35% flat rate tax for foreigners working in the mineral resource industry outside towns and settlements on salary originating from their income in Greenland. Only individuals who have not been liable to tax in a Greenland municipality during the past six months will be covered by the flat tax scheme.

There are tax agreements between Greenland, Denmark, Iceland, Norway and the Faroe Islands. Otherwise the income tax system is structured according to the Danish model with taxation at source.

The income tax rate for 2011 is 42 % for Kommuneqarfik Sermersooq, and 37% for areas outside municipal classification. Personal allowance for 2011 is DKK 58.000.

Estimating of Taxes and Revenues to Greenland from the Exploitation of ISUA Project Estimating and results of a Taxes and Revenues analysis in terms of benefits to Greenland are presented in Section 6.0.

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2.5 SIA Guidelines

The Social Impact Assessment is based on the Guidelines for Social Impact Assessments for mining projects in Greenland, November 2009, prepared by the Bureau of Minerals and Petroleum. Furthermore, other guidelines on SIA and the Mining Sector have been referenced.

• International Finance Corporation (IFC), Addressing the Social Dimension of Private Projects – Good practice Note, 2003 • International Council on Minerals and Metals framework and guidance notes. • Community Development Toolkit, produced by World Bank, International Council on Minerals and Metals, and the Energy Sector Management Assistance Program • Mackenzie Valley, Socio-Economic Impact Assessment Guidelines, Mackenzie Valley Environmental Impact Review Board, 2007

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3 PROJECT DESCRIPTION

3.1 The ISUA Project

Ujarassuit Narsap Sermia

Figure 3-1 The ISUA Project key components

This section of the SIA presents a summary description of the ISUA Iron Ore Project, as per the ISUA Bankable Feasibility Study (BFS, SNCLavalin, 2012).

The aerial photo above shows the key components of the ISUA project, namely: 1) the mine which is located at the edge of the glacier at some 1100 m elevation; 2) a process plant facility which will transform the ore into iron concentrate; 3) a port facility which will be located at Taseraarsuk bay; 4) a potential small airport for “Dash” types of planes; and 5) an access road between the port and the process plant. It is noted that the decision to construct the small airport is differed to the operation phase, because of other aspects related to security, customs and passport control for international passengers. These aspects are not under the control of the Isua project. For the construction period, all the movements of workers, technical people and others will be carried out by ferries from Nuuk.

The goal of the ISUA project is to extract iron ore from the mine and to convert this ore into an iron concentrate – the final product of the processing.

The iron concentrate to be produced by ISUA is a high quality product with 70.2 % iron (Fe).The iron concentrate, in the form of a “slurry”, is transported from the process plant to the port, by a slurry pipeline along the access road.

The SIA is based on the design for the ISUA Project for a production capacity of 15 Million Tons of iron concentrate per year as per the BFS.

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Currently, the life of the ISUA mine is estimated to be 15 years. The life of the mine could be more than 15 years, up to perhaps more than 30 years, once more drilling is completed to confirm the additional reserve of the mine. Such further exploration drilling will take place during construction and during the operation of the mine.

Project Highlights

Aiming at 15 Mtpa concentrate
15 year mine life Large Operation
Potential to expand mine life significantly with further upgrade of inferred resources to indicated (more than 1 billion t of resource)

Premium Product
Premium BF (Blast Furnace) pellet feed Specs.
70.2% Fe

Waste Rock estimated quantity 303 Mt for 15 year mine life; Mined Ice estimated Low Waste quantity 282 Mt for 15 year mine life; Operation &
Low stripping ratio Environmental Impact
Test results show no concerns on acid mine drainage and no concern with metal leaching

Large glacier terminal lake to be used for tailings deposition – no existing Environmentally environmental and engineering concerns as the glacier lake is naturally highly turbid Friendly Tailings water, high level of natural suspended solids, no habitat for fish, no biological activity. Management
Underwater discharge and submerged tailings for long term environmental protection

Year Round
Open sea for year round shipping and deep water port for large ships – very deep Shipping water at port location, current plans assume 250,000t ships 4

Figure 3-2 Project highlights of ISUA Iron Ore Project. Source: London Mining, 2011

3.2 The ISUA project key components and infrastructures

A brief summary of the project description is given in this section based on the information obtained from the BFS report (SNC Lavalin, 2012).

The mine will be developed as an Open Pit, where blasting will be used to break the ore body. Large mine dump trucks will then transport the broken ore to a primary crusher. In order to progressively access the ore in the mine, rock with no iron content must be removed. This is called “waste rock”; the waste rock removed during mining operations is transported to a waste rock storage area. Removal of ice will also be required to access other areas of the ore body. The ice to be excavated as the open pit expands will be transported to separate storage areas. The reader shall refer to the EIA for the technical details regarding the location and configuration of the disposal areas for the excavated ice.

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Figure 3-3 The mine and aerial view of the Processing Plan Area. Source: London Mining

The Primary Crusher is the 1 st step of the ore processing at the future ISUA facility. The goal of the primary crusher is to reduce the size of the large blocks of ore extracted from the mine. Once broken into smaller size, the crushed ore is then sent to an ore stockpile located at the process plant by means of a conveyor.

A process plant area will be constructed some 3.5 km away from the primary crusher and approximately 5 km from the mine. The process plant is where the iron (Fe) is extracted from the ore. The process plant area will include the following key components: 1) The ore stockpile which will feed the process plant; 2) The process plant itself which will extract the iron from the ore; 3) A 128 MW power plant; 4) Fuel storage and distribution facility, accommodation building including kitchen, nursery, rooms and other services for the workers and mine staff, mechanical maintenance building and site services. The final product from the process plant is an iron concentrate in the form of a slurry which will be transported to the Port area by a slurry pipeline along the road (66 cm diameter the first 70 km, and 61 cm diameter for the remaining length).

A Port and associated facilities will be constructed at Taseraarsuk Bay, 105 km from the process plant, and some 70 kilometres from Nuuk, Greenland’s capital city. The function of the port facility is 1) for shipping of the concentrate to the markets and 2) for supplying the mine with fuel, equipment, materials and foods. The port structures consist of two wharfs and associated loading systems. The other components of the port operations include the dewatering facility for the concentrate slurry and the storage building for the concentrate before loading to ships, a smaller power plant (32 MW ), accommodation complex for the workers, administration building, fuel storage facilities and other infrastructures.

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Figure 3-4 Port Area: The wharf where large ships will come to load the concentrate product and transport it to the markets

Bulk carrier vessels will arrive at the port about twice per week to transport the concentrate product for exporting. As seen from the picture, a conveyor will deliver the concentrate product from the storage building to the ship loader at the wharf. Support of berthing and de-berthing manoeuvres will be accomplished with tug boats, which will also have the function of managing ice and icebergs in the fjord.

The Figure 3-5 below provides an illustration of the major processing steps to extract iron (Fe) from the ore and to produce an iron concentrate which is the final product. This iron concentrate is shipped to iron and steel plants for manufacturing all sorts of iron and steel products.

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Figure 3-5 Block Flow Diagram revealing the main processes of the mine. Source: London Mining

Aside from the major components described above, the ISUA project also includes other infrastructures and associated facilities, in particular in connection with environmental protection. As examples of such associated facilities are the following and the reader is referred to the Environmental Impact Assessment study (EIA) for more details in these areas.

1. a state-of-the-art incinerator technology for the disposal of domestic solid wastes to be produced from the accommodations complexes and from the maintenance shops; 2. wastewater treatment plants to treat sanitary and domestic wastewaters from the toilets, the showers, the kitchen, washing and other domestic activities. Sanitary and domestic wastewaters will be treated in compliance with the standards required by BMP for the discharge of the treated effluents 3. spill control equipment for fuel storage areas; 4. equipment from oil removal from the water to be used to wash trucks and other equipment; 5. drainage systems to collect the natural run-off water from the plant site and port site and to control quality of the run-off before it reaches the fjord; 6. dust control equipment at the primary crusher and conveyors; 7. air emissions control equipment at the power plants for meeting applicable Danish and EU air emission standards.

The ISUA mining operations will be supported by a comprehensive Environmental Management Plan, a detailed Monitoring Plan and site specific Health and Safety procedures.

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Accommodation Complexes for housing workers and mine staff at the Isua site during Construction and Operation

During construction and operation, workers and mine staff will live at the Isua site for a certain number of consecutive weeks, which are called “rotation” (see section 6.1.2. for more information about rotations).

In terms of quality of life for the workers and staff living at the Isua site during construction and operation, the ISUA project will provide on-site accommodations which will offer the people working at ISUA all the services and support for quality of life at the mine site and port area. These will include nursery, communication systems, gymnasiums, kitchen, recreational areas, health and safety, training rooms, lockers, etc., as per the best practices in similar mining operations in Northern Canada. Housing, meals and safety equipment will be provided free to the workers and mine staff.

Two permanent accommodation complexes are needed for the operation phase; one will be located at the port Area with a capacity of 162 persons and the other one will be located at the process plant site with a capacity of 460 persons. A detailed description of the permanent Accommodation Complexes at the Port area and at the Process Plant site is given in Appendix 7.

The Accommodation Complexes for the construction period (3 years) have the same location (Port area and Process Plant site) and they are based on the similar construction principles as for the permanent accommodations for the operation phase. However, the accommodation complexes will have a larger capacity during construction, and excess accommodation units will be removed when the operation phase begins.

Medical facility Onsite medical facilities for both the construction and operational phases will be equipped and staffed to aid employee’s with minor and less serious ailments. In the event of serious illness or injury, depending on the situation, the employee will be transported by either air or sea to the nearest healthcare facility in Nuuk.

3.3 Expected implementation schedule for the ISUA Project

Based on the project planning presented by the Bankable Feasibility Study (BFS) for the ISUA project, the key steps for implementation are summarized as follows:

• Submittal to BMP of the BFS, EIA and SIA was completed in March and May 2012; • Public Hearings process was completed over the period from August to October 2012; • IBA negotiations with BMP and stakeholders started in December 2012; • Construction of Access Road and Construction Camps planned for 2012-2013, subject to permit approval by Greenland Government and to confirmation of financing. • Construction of the Mine facilities (process plant, port, power plants, etc) planned for2013-2015 subject to permit approval by Greenland Government and to confirmation of financing.

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3.4 Labour requirements for the Construction Phase and Operation Phase of the ISUA Project

3.4.1 Construction phase

The construction phase is planned to start at the end of 2012, if the permit is obtained, and estimated to be completed in Q3 of 2015. The construction is also dependent upon the funding availability. Start up and commissioning of the mine is planned to start in the 4th quarter of 2015. The construction activities will take place on a continuous basis over that period of time, including winter time. As per well-known construction practices in Northern region, the construction plan is prepared and scheduled such that buildings are erected during spring and summer months and installation of equipment is done inside the buildings during winter months. During construction, all workers will live at the site and will be housed in accommodations that will provide the workers with all necessary services as described in section 3.2 above.

The ISUA project will perhaps be the first large scale mining project being developed in Greenland. There is no equivalent large scale industrial facility ever constructed and operated in Greenland.

The construction of such a large scale mining facility in Greenland is facing major constraints due to the very small population of Greenland (approx. 57,000 total population) and due to the absence of other major industrial operations in Greenland. The construction of the ISUA mine will require in the range of 1500 to 3000 skilled and experienced workers in all construction disciplines such as civil work, mechanical installation, structural steel erection, electrical installation, concrete work, automation and control, etc. Such a large work force (1500-3000), with the necessary qualifications, skills, experience cannot be found in Greenland.

For this reason, the construction of the ISUA project is based on the following approach:

a) Small construction packages and services packages will be offered to local Greenlandic contractors/suppliers based on competitive bids. Examples of construction packages and services contracts to be offered to local Greenlandic enterprises are presented in Figure 6-1. At this point of the planning of the construction of the ISUA Project, it is estimated that construction packages and services packages that can be feasible by local Greenlandic enterprises would account in the range of 7% to 10 % of the total labour during the Construction Phase, assuming this level of construction labour can be found and mobilized in Greenland.

b) Large construction work packages and mine equipment packages such as the primary crusher, ore processing Plant, power plants, slurry pipeline, port facility, ship loader, conveyors, slurry dewatering facility will be offered to large international specialized contractors based on international competitive bids. The international contractors, including large firms in Denmark, to be selected for these large construction packages will provide the skilled and experienced foreign workers for the Construction phase of the ISUA project. At this point of the planning of the construction of the ISUA project, it is estimated that international contracts with foreign workers will account in the range of 90% of the total labour during the construction phase

The socio-economic aspects of foreign workers working in Greenland for the construction of the ISUA project are assessed in section 6.1.

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3.4.2 Operation Phase

Due to the small population of Greenland and due to the absence of local workers experienced in the operation of large scale mining facilities, the Operations Phase will be staffed for the first years of operation using a combination local Greenlandic employees and expatriate personnel including North Americans, Europeans, Chinese and other operators from Asia. All expatriates and local employees will be accommodated at permanent camps for the duration of their onsite rotation. Housing at the permanent site accommodations, meals, safety gears and cleaning of clothes are provided free to the workers. Transportation from the site to workers home during the rotation is also provided partially paid or at no cost to the mine employees.

The following distribution of the labour force has been considered during the first five years of operation:

• 55% of employees from Western countries and Greenland (see Table 3-1 for more details) • 45% of employees from China and other Asian countries;

After five years of mine operation, and based on training programs to be implemented as part of the Isua operation, it is planned to achieve the following distribution of the labour force:

• 45% of employees from Western Countries; • 55% of employees from Greenland;

For start-up, there will be in excess of 10 to 15% expatriates (which includes commissioning specialists). An operational readiness program will be implemented to ensure the operating organisation is ready to successfully manage the facility from start- up, and that the workforce is well-trained and capable.

For the first five years, the mine and the process plant will have Chinese and Asian operators and supervisors in many positions. Based on Training, it is planned to progressively replace the Chinese and Asian operators during Year 1 to 5 with local or regional personnel from Greenland; section 6.2 on Education and Training provides more details in this respect. To achieve this, support will be sought from local government and public employment agencies in order to identify and attract the best candidates.

The key objective is to hire as many local qualified candidates as possible who have successfully completed a minimum educational requirement, and who have a proven ability to learn, and meet other job-specific selection criteria.

In order to progressively replace the Chinese and Asian operators, labourers and supervisors, local Greenlandic staff will be recruited thus ensuring sufficient time to achieve the training competencies required.

For the purpose of the Tax and Revenues analysis, the number of local Greenlandic staff is assumed to be on average 20% of the total mine personnel during the first 5 years of operation, and assuming this level of local workforce can be available and mobilized in Greenland; in parallel during the first 5 years of operation, training will progressively prepare for local resources to fulfil up to 55% of the positions at the mine.

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In Table 3-1 is a summary of the staffing divided over local Greenlandic staff, Chinese/Asian operators and Western labour over an operating period of 15 years. The calculations are based on labour estimate data supplied in ISUA BFS (SNC-Lavalin, 2012).

Total average annual staff for the mine operation is estimated to 680 in year -1 to year 4, increasing to an annual average of 810 in years 5 to 15. The average annual number of employees will increase starting at year 6 because of the mining plan. Table 3-1 below provides the annual average staffing levels per category of personnel for the 2 main periods of operation.

Year -1 to 4 Year 5 to 15 Average annual number of local Greenlandic staff (20%-55%) 136 445 Average annual number of Western Labor (35 % for the first 5 years; 238 365 45 % for years 6 to 15) Average annual number of Chinese/Asian Operator Labor (45 % for 306 0 the first 5 years; assumed to be replaced by Greenlandic personnel progressively at each year of the period) Table 3-1 Summary of expected staffing during operation/yearly average number of employees per period. Note: Year -1 refers to the year of commissioning and production ramp- up.

Preliminarily, work positions that are expected to be fulfilled with Greenlandic workers from year -1 are most likely to be in the mine camps, port site and road surveillance and other maintenance. It is unlikely that positions that require specific training and experience at the mine and processing plant can be completely filled by Greenlandic workers from year -1. A program for training and development of skills will be developed in order to gradually increase the number of Greenlandic employees in the various technical areas of the mine.

The technical positions for the mine operation are listed in Table 3-2 below. Most of these technical positions require personnel with specialized skills, specialized training and experience with the operation of similar iron ore mining and processing operations. In particular during the first years of operation, only experienced and skilled technical operators can achieve the day-to-day operation of such mining facilities. These will be recruited in both Western and Asian countries where similar operations exist.

The objective for the Greenlandic workforce at year -1 is in the range of 20 %, subject to the possibility of mobilizing such a level of workforce in Greenland for the first years of operation. This percentage for local staff at the mine during operation is planned to increase to 55% after the first 5 years, subject to training and subject to the availability of local qualified candidates for these positions. There are no gender restrictions for any of the jobs.

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Table 3-2 shows the planned project staff at Mine and Process Plant, Port and Delivery Corridor, as well as staff for General Administration.

The socio-economic aspects of the labor during the operation of the mine are assessed in Section 6.1.

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MINE PROCESS PLANT

General Manager MINE MAINTENANCE Plant Manager Secretary Shop Maintenance PLANT OPERATION MINE OPERATION Shop Maintenance Superintendent Process Operation Superintendent Mine Manager Workshop Truck Supervisor Shift Supervisor Mine Operation Superintendent Workshop Auxiliary Supervisor Chemical Engineer Shift Supervisor Workshop Mobile Equipment Supervisor Engineering Superintendent Truck Dispatch Supervisor Workshop Services Supervisor Process Engineer Shovel Operator Maintenance Planner Planners Heavy Truck Operator Welder Crusher Operator Rotary Drill Operator Fuelling / Lubeman Concentrator Operator Percussion Drill Operator Tyre Repairman Labourer Front-end Loader Operator Washer Laboratory Technician Bulldozer Operator Electrician Technician Grader Operator Mechanic Clerk Water/Sanding Truck Operator Carpenter PLANT MAINTENANCE Fuel & Lube Truck Operator Janitor Superintendent Maintenance Backhoe Loader Operator Plumber Mechanical Supervisor Blaster Electronic Electrical/Instrumentation Supervisor Blasting Assistant Apprentice Rubber Shop Supervisor Labourer Clerk Maintenance Mechanic Clerk Maintenance Technician Apprentice MINE ENGINEERING GEOLOGY Field Maintenance Maintenance Electricians Chief Mine Engineer Field Maintenance Superintendent Maintenance Instrumentation Mine Planning Engineer/Drilling & Blasting Field Shovel & Drill Supervisor Apprentice Geologist Maintenance Planner Maintenance Mechanic Mine Planning Technician Electrician Apprentice Surveyor + Surveyor Assistant Mechanic Geology Technician Apprentice Clerk Welder Table 3-2 ISUA Project Staff at Mine and Processing Plant

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G&A INFRASTRUCTURE PORT DELIVERY CORRIDOR WHSE, KITCHEN, General Administration Manager Port Manager WARF/SECURITY Service Roads Accesses Nutritionist Clerk Wharf/Security Superintendent Plant & Delivery Corridor Superintendent Accounting Superintendent PROCESS OPERATION Security Supervisor Road & Mine Plant Maint. Supervisor Accounting Supervisor Process operations Superintendent Nurse Grader Operator IT Supervisor Supervisor Operations & Maintenance Services Supervisor Truck Operator Accommodation Superintendent Operator Warehouse Supervisor Container Handler Operator Kitchen Supervisor Labourer Kitchen Supervisor Dispatch Road Control Operator Warehouse Superintendent Mechanic Wharf Operator Labourer Buyer Maint. Electrician/Instrumentation Tugboat Crew Aggregate Plant Operator Kitchen Assistant Clerk Security Crane Operator Cleaning/Laundry MAINTENANCE WORKSHOP Health & Safety Janitor Janitor Workshop Services Supervisor Clerk Front End Loader Operator Warehouseman Planner Labourer/Helper Fuel Truck Operator Clerk Clerk Warehouse Stock Controler Clerk Warehouse Clerk Welder Warehouseman Slurry Pipeline System Technician Electrician Janitor Supervisor Op. & Maintenance HUMAN RESSOURCES Maintenance Mechanic Kitchen Assistant Operator Human Resources Manager Electronic Cleaning/Laundry Labourer/Helper Security Supervisor + Security Carpenter Janitor Maintenance Mechanic Nurse Plumber Maint. Electrician/Instrumentation Public Relation Supervisor Apprentice Environment Supervisor Janitor Training Supervisor + Trainer Labourer Clerk Mail Delivery Environment Technician Health & Safety Table 3-3 ISUA Project Staff at General Administration, Port Site and Delivery Corridor

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3.5 Transport of personnel

The ISUA Mine is a remote site and a privately operated site. It is located about 150 km from Nuuk and there is no public transportation between Nuuk and the site. All the foreign workers coming to work for the project must be carefully managed in a logistically possible and economically sensible way to bring them to the site and going back home. When groups of workers come to Greenland and go on their rotation returning home, the transportation must be organized by the Mine officers according to a detailed travel-work schedule. The workers on rotation going home will be transported by ferries to Nuuk, following stringent safety procedure under the responsibility of mine safety personnel. Without such a discipline, the rotations of personnel at the mine cannot be managed. This type of management plans are about the same for all remote mines in Canada and in other countries.

It is important to point out that these workers are not separated from Greenlanders as there are local workers working on site.

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4 SIA METHODOLOGY

4.1 Baseline study

The social baseline study is a requirement of BMP. The social baseline study was carried out over the period from 2010 to 2011.

The baseline study provides information on demographic and economic conditions and trends, political structures, local organisations, cultural traits, and other factors that can influence the way in which affected communities will respond to anticipated changes brought about by the project. The baseline also helps to predict in which way the project will be affected by these factors. The development of the baseline and the identification of the impacts are an interrelated and parallel process.

For the ISUA project, the Baseline study was performed in three steps: • Data collection from secondary sources: review and systematization information and data from publications, official statistics, especial studies on the Greenlandic population in Greenland and Denmark, web based studies and articles, follow up on Greenlandic and Danish media, etc. All the documents and sources consulted are listed at the end of this report. • Collection of information from primary sources, through field work and interviews with key informants and stakeholders (field work, mail and telephone), and qualitative participatory methods • After having identified potentially critical social issues, detailed interviews and/or short studies involving specific project affected groups (focus groups) were carried out in the community. • Detailed interviews and Specific study for collection of quantitative and qualitative information related to local use of natural resources in the project area

The review and systematization of secondary information was a continuous process performed between October 2010 and December 2011, in order to incorporate changes and updates as well as to fulfil the background information required for the impact assessment.

For the ISUA project, the content of the baseline follows the recommendations of the Guidelines for SIA of Mining Projects, being more detailed in the aspects that are relevant for the impact assessment of the project. As required by the Guidelines, the baseline Study encompasses information at National level, at Municipal level for Kommuneqarfik Sermersooq and local level for Kapisillit. When relevant and possible, baseline information from Qeqqata Kommunea, as required by the BMP, is also included.

4.2 Data collection from secondary sources and research from primary sources

For the study on local use of the project area, a questionnaire was specially developed to investigate fishermen/hunters’ use of the project area during 2009 and 2010, the main purpose of the stay and where in the project area, to be pointed in a map. This study is attached as Appendix 5. Furthermore, the amount of animals shot or fished, or amount of berries collected were registered. A similar questionnaire was also applied in relation to seal hunting in the coast of Akia/Nordland. The questionnaires were elaborated and applied both in Greenlandic and Danish.

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The individual and thematic group interviews carried out in the field are listed below:

Individual interviews with fishermen and hunters - quantitative information Anonymous professional fishermen and hunters Fishermen and hunters are in (approximately 49 in total) possession of a valid commercial catch

license in Nuuk og Kapisillit, interviewd 15/6/2011 – HS Analyse, a Greenlandic at KNAPK (national fishermen and 5/7/2011 consultancy company hunter’s association) offices. subcontracted by Grontmij A/S

to conduct the survey on local

population’s use of the project area Anonymous recreational Recreational sailboat owners from the hunters, represented by marina Iggia, interviewed at the 15/62011 – owners of motor boats (208 in pontoons in Iggia. 5/7/2011 total)

HS Analyse Individual Interviews – University of Greenland 9/11 2010 1 Researcher, SLICA project – Ilimmarfik (University of Greenland) 9/11 2010 1 Rector Ilimmarfik 12/11 2010 1 Researcher – Ilisimatusarfik (Section of the Greenland University) Meeting with the dep t. of Nature and Environment and the Institute of Nature 10/11 2010 1 Greenland Institute of Natural Resources 4 Min. Domestic affairs, Nature and Environment Meeting with the Ministry of Health 11/11 2010 2 Ministry of Health Meeting about social health and vulnerable groups 11/11 2010 2 Qaqiffik 1 Ilimmarfik Meet ing with Dep. of business, labo r and education in Kom. Sermersooq 12/11 2010 1 Dep. of Business development 1 Dep. of Labor Market 1 Environmental Director 1 Ministry of Industry and Labor Meeting with GMS and Nukissiorfiit 12/11 2010 3 GMS 1 Nukissiorfiit Workshop on Demographic Changes and follow up e -mail communication 30/05 2011 1 PAARISA, Agency for Health and 1 Prevention 1 Ministry of Health 1 Ilimmarfik, University of Greenland 2 Tax Agency (Greenland Government) 1 Ilimmarfik, University of Greenland Baseline and local use interviews with community representatives in Kapisillit 31/05 – Representative from 02/06 2011 Kommuneqarfik Sermersooq Kapisillit Head of skin sewing workshop

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for women Young unemployed man Community chairman, Fisherman and church helper School administrator Two elder women Visiting school teacher from Nuuk Table 4-1 Thematic and group interviews

4.3 Impact Analysis Methodologies

The impact analyses have been performed for Construction and Operation phases and are presented separately.

The Impact categories analysed are the following:

• Economic environment o Taxes and revenues o Direct employment o Indirect Employment o Local business life & economy o Conflict/synergies with other sectors o Traditional livelihoods

• Education and training

• Public service and development plans

• Social aspects o Demography and population o Social conflicts o Vulnerable groups

• Health o Occupational health and risk of accidents o Public health and quality of life o Environmental impact

• Cultural and natural values o Sites of monumental or cultural importance o Access to natural areas

Potential impacts arising from the project activities on socio-economic components, both during the construction and operation phases have been identified and their magnitude of each impact quantified as far as possible.

Tools and Methodologies for prediction and characterization of potential impacts

A participatory approach has been used thoroughly during the process, being the feedback and opinion of key stakeholders and qualified local informants an important base for the analysis of factual or perceived impacts.

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The public concerns, expressed both directly in public meetings and interviews as well as in the Greenlandic communication and social media, were also considered when assessing the significance and magnitude of the impacts.

Potential local impacts in Kapisillit and specific features in Qeqqata Kommunia are also included in the analysis.

Different methodologies have been used to characterise, assess significance and evaluate the impacts for different impact categories. All the tools and methodologies for impact characterization and prediction are known and accepted by other international SIA guidelines such as the Mackezie Valley Environmental Review Board, IFC and ICMM.

For the category Economic Environment, characteristics and prediction of economic impacts were made by integrating a variety of methods as described below. Estimates were made based on information provided by the BFS Report and the legal framework in Greenland at the time of this report’s preparation:

• Corporate and dividend taxes were estimated based on the information provided in the financial analyses of the Isua Bankable Feasibility Study (SNC- Lavalin, 2012) • Income and personnel taxation were calculated based on the estimated average annual number of workers, precedence of the workforce and ruling taxes regulations as of February 2012. • Indirect taxes and revenues were estimated using a multiplier employment factor of 1,3 (+/-10%) (Niras, 2007, Waltkinson, 2009) • Figures for direct local and international employment were provided by ISUA Bankable Feasibility Study (SNC-Lavalin, 2012) • Local indirect employment was estimated based on total amount of workers during construction and operation, the expected share of local workers, requirement of suppliers and potential services provided locally and the expected opportunities and challenges during construction and operation. • Characterization and magnitude of potential impacts on local business life and economy and conflict synergies with other sectors were based on: o Analysis of existing business services and market trends o Estimated demand of services and products from the project o Inputs from key informants and stakeholders from the Greenlandic and other business sectors o Review of research papers on Greenlandic job markets, economic and politic situation o Analyses on opportunities and constraints o Analyses of expected industrial and extractive projects in Greenland, and o Experiences from the oil sector in Greenland

For the analysis of the impact on Traditional Livelihoods , the analysis was carried out in 5 steps:

• Establish a baseline for both professional and recreational fishermen and hunters in Nuuk and Kapisillit, with the use of both qualitative and quantitative methods. The baseline was established based on workshops, meetings and interviews (208 interviews in total) in Nuuk and Kapisillit. The information collected included:: o Frequency of presence ashore in the project area during 2009 and 2010

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o Type of activity performed o Catch of caribou, seal and arctic char o Share of catch that was sold o Tourism activities in the project area • Develop a map based on the interviews of 208 professional and recreational hunters showing where professional and recreational hunters hunt for caribous, fish or seals. • Analyse the conclusions of the report “Caribou in the ISUA project area and assessment of potential impacts of mining activities” (Orbicon, 2011) in relation to the use of the area and resources by commercial and recreational fishermen and hunters • Identify potential impacts on traditional livelihood for professional and recreational hunters • Determine magnitude of potential impacts considering, including inputs from key informants and feedback received by fishermen and hunters, opinion of environmental impact experts and experience of impacts of caribous in similar situations and environment: o Certainty/Likelihood of impacts: likelihood of occurrence, level of certainty of its occurrence o Extent of the impacts: geographical range of the impacts, regional “beneficiaries” and “non-beneficiaries ” o Duration and frequency of impacts: temporary occurrence of the impacts (short lasting or permanent) o Period of Manifestation o Public concerns: perception of impacts, fears and conflicts foreseen by general public, authorities, fishermen and hunters

For Public Services and Development Plans, the characterization and prediction of impacts were made based on the assessment of historic and future demands for government services and review of experience from the oil industry, including inputs from relevant local authorities and public participation.

For the characterization and prediction of Social and Public Health impacts, impact hypothesis workshops were organized with academics, key informants, stakeholders and local authorities. International experience from large scale mining projects was also applied for issues not identified by local experts. For Occupational Health and Risk impacts, information on characterization and impact prediction was provided by London Mining (SNC- Lavalin, 2012)

The impact analysis on cultural and natural values was performed based on the review of specific reports (Archeology report), mapping analyses, consultation with relevant authorities and the results of public consultations and interviews with key informants.

Significance of Anticipated Impacts of the ISUA Iron Mining Project The significance and magnitude of the impacts have been evaluated according to the following significance classifications and definitions:

Positive (benefits & Negative (risks opportunities) and impacts) Not significant Not significant or Not relevant Low +L - L Medium +M - M High +H - H

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Proposed criteria for NEGATIVE CONSEQUENCE determination of the overall significance and magnitude of Small Medium High the impact Very likely MEDIUM - MEDIUM - HIGH - Likely MEDIUM - MEDIUM - HIGH - LIKELIHOOD Possible LOW - MEDIUM - HIGH - Unlikely LOW - LOW - MEDIUM - Very unlikely LOW - LOW - MEDIUM -

Proposed criteria for POSITIVE CONSEQUENCE determination of the overall significance and magnitude of Small Medium High the impact Very likely MEDIUM - MEDIUM - HIGH - Likely MEDIUM - MEDIUM - HIGH - LIKELIHOOD Possible LOW - MEDIUM - HIGH - Unlikely LOW - LOW - MEDIUM - Very unlikely LOW - LOW - MEDIUM -

The criteria used for determination of likelihood is:

Very likely : Consequence very likely to occur, already planned Likely: Expected but not planned; has occurred on numerous similar projects; is a common consequence of such a project Possible : Consequence could happen Unlikely : Not expected, uncommon consequence of such projects. Very unlikely : Steps taken to avoid this consequence; very uncommon consequence of such projects.

Criteria for determination of the consequences are combinations of the following factors:

• Extent of the impacts: geographical range of the impacts, number and situation (vulnerability, resilience to change, etc.) of the receptors/beneficiaries • Duration and frequency of impacts: temporary occurrence of the impacts (short lasting or permanent), wide fluctuations that could disrupt the community over time (boom-and bust periods) • Period of Manifestation: the impacts could be noticed immediately or over time by the community • Reversibility: whether the impact can revert to the baseline situation during or immediately after the end of the project • Public concerns about potentially affected/benefficiary groups in the community, authorities, stakeholders and general public

Mitigation measures and measures to maximize the benefits The SIA has also identified mitigation measures to be implemented for all impacts likely to occur, adverse in nature and significant enough to require mitigation (medium and high- level (negative) impacts) in order to mitigate or eliminate such impacts.

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The mitigation measures presented in the SIA have been proposed by: • Stakeholders and authorities during consultations • SIA consultants based on international experience, best practices and their own understanding of the local context and opportunities. • London Mining experiences in consultations with the SIA consultants for adaptation to the Greenlandic context

Anticipated social impacts are summarised in a table at the end of chapter 6, with colours indicating their magnitude and significance both before and after applying measures. The measures are either mitigation measures to minimize the potential negative impacts or measures to maximize the benefits. For the areas where positive impacts have been identified are mitigation measures not proposed. Instead are measures to optimize the benefits proposed.

4.4 Summary of the Economics of the Isua Project

A bankable feasibility study (“BFS”) with AACE Class 3 estimates for a 15Mtpa operation considering a 10 year mine life based on the currently available amount of Indicated resources has been completed. A 15 year exploitation plan was also evaluated to demonstrate the greater potential of the asset. The BFS supports the initial findings of the scoping study, provides a more accurate estimate of cost and provides the foundation to finance and construct a mine at Isua. The detailed results for the next stage of the project are outlined below.

Highlights of the Bankable Feasibility Study Study date BFS March 2012 Annual production (Mtpa) 15 Mine life (years) 10 with planned extension to 15 Operating cost DKK/ t 269 concentrate (USD/t concentrate) (46) Capital expenditure DKK 13,8 milliarder (USD billions) (2.35) Capital Intensity DKK/tpa 918 (USD/tpa) (157) Table 4-2 Highlights of the Bankable Feasibility Study

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Resources and Mine Life

As part of the BFS programme, 7,656m of drilling was completed during the summer of 2011 which forms the basis for an updated resource statement. Snowden estimated a total resource for Isua of 1,107Mt grading 32.3% Fe. This improved result has increased the resource by 10% in resource tonnage from the March 2011 resource statement. The modest reduction in Fe grade to 32.6% is the result of the decision to report internally diluted head grades due to incorporation of waste bearing structures in the block model rather than consideration of a selective mining method.

The new resource represents a substantial 82% increase in Indicated resources from 209Mt to 380Mt which is sufficient to support a 10 year mine life. Potential to extend the mine life could be achieved through further drilling necessary to convert Inferred resources into the Indicated category.

Summary of Isua Mineral Resource at March 2012 reported at a 20% Fe cut-off grade and constrained inside an ultimate pit shell

Tonnes Category Fe (%) Al O (%) SiO (%) S (%) P (%) (Mt) 2 3 2 Indicated 380 32.6 2.4 41.8 0.23 0.03 Inferred 1 727 32.1 2.3 42.3 0.22 0.03 Total 1,107 32.3 2.4 42.2 0.22 0.03 Table 4-3 Summary of Isua Mineral Resource at March 2012 reported at a 20% Fe cut-off grade and constrained inside an ultimate pit shell 1 83% or 607Mt of the inferred resources are extrapolated beyond the current drilling coverage

The 2011 drilling campaign also confirmed additional mineral resource potential originally indentified by Rio Tinto in 1997. This area of mineralisation potential has been identified as a down dip extrapolation of the Isua banded iron formation (“BIF”) bearing the existing resource. Part of this mineralisation potential is comprised of an area of hematite BIF which has been interpreted at the top of the BIF unit. This appears to be underlain by more typical magnetite BIF.

Summary of the mineralisation potential at the Isua deposit at end December 2011 2

Potential Potential tonnage Potential Grade mineralisation range (Mt) Range (Fe%) type Magnetite BIF 800 to 1200 30-33 Hematite BIF 150 to 300 >35 Table 4-4 Summary of the mineralisation potential at the Isua deposit at end December 20112 2 Snowden considers this material to be an indication of Mineralisation Potential only and makes no guarantees that this material can or will be converted to a Mineral Resource or an Ore Reserve at any time in the future following the collection of additional data.

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BFS Results

The March 2012 BFS considers a 15Mtpa operation with a mine life of 10 years, based on the current availability of Indicated resources. Snowden expects further Indicated results could be defined if additional infill drilling were undertaken.

The operating cost is estimated to an average of DKK 269/t (USD46/t).

Capital expenditure for the project is estimated at DKK 13,8 billion (USD 2.350 billion) with a confidence level of +/- 15%.

Testwork by SGS Lakefield has confirmed the final product from Isua to be a premium quality blast furnace grade pellet feed with 70.2% of Fe and less than 2.0% Silica (SiO 2) and Alumina (Al 2O3.) Sulphur levels will be either 0.12% or 0.3% depending on the grade of sulphur in the ore processed.

Financial analysis Two pricing scenarios were considered in the study. The base case scenario considers the sale of 5Mtpa of low sulphur pellet feed into Europe and 10Mtpa of higher sulphur product into China with a more conservative case assuming the sale of all products into China. Long term market study and price forecasts were undertaken by Raw Materials Group (“RMG”). RMG assume a conservative premium of DKK 17,6 (USD3) per Fe unit above benchmark with freight costs of DKK 199/wmt (USD34/wmt) for capesize shipping to China and DKK 53/wmt (USD9/wmt) into Europe. Three scenarios were considered for the purposes of financial evaluations. The base case scenario assumes a 10 year mine life and pricing based on sales of product into both Europe and China. Two further scenarios were considered both incorporating Inferred resources into the mineable resource to achieve a 15 year mine life. One of these scenarios assumed the sale of all products into China. The results are shown below.

Results of Isua Project financial analysis (after tax)

Extended 100% sales Base case mine life to China Mine Life 10 years 15 years 15 years Pricing 5Mtpa to Europe 5Mtpa to Europe 15Mtpa to China assumption 10Mtpa to China 10Mtpa to China Project IRR 18.7% 20.9% 19.9% (100% equity) Project NPV (8% discount rate, 1,755 2,366 2,135 USD m, 100% equity) Equity IRR (70% debt : 30.1% 31.6% 30.1% 30%equity) Project payback period (in years 3.5 years 3.5 years 3.6 years of operation) Table 4-5 Results of Isua Project financial analysis (after tax)

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5 SOCIAL AND ECONOMIC BASELINE CONDITIONS

5.1 Introduction

This section describes the existing social and socio-economic environment of Nuuk, Kapisillit (the closest settlement to the project), the region (Kommuneqarfik Sermersooq), and Greenland in general. Map of Greenland showing Municipalities and main towns (NunaGIS,  Oqaasileriffik,  KMS).

Figure 5-1 Map of Greenland showing Municipalities and main towns (NunaGIS, Oqaasileriffik, KMS)

The information presented in this section is based on available documents and statistical information until July 1 st , 2011 (a full list of references can be found in the bibliography), complemented with information collected during field work and interviews with authorities, informants and stakeholder focal groups during November 2010 and May-June 2011(list of groups presented in section 10).

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Based on available data and field work from 2010 – 2011, the baseline study provides information on demographic, economic conditions and trends, political structures, local organisations, cultural traits, and other factors that can influence the way in which affected communities will respond to anticipated changes brought about by the Project. The baseline study also helps to predict in which way the Project will be affected by these factors. The development of the baseline study and the identification of the impacts are an interrelated and parallel process.

The scope and content of the social baseline for ISUA iron ore project fulfils the requirements of the SIA Guidelines for Mining projects in Greenland (BMP, 2009). Furthermore, it includes critical aspects identified during the scoping phase and information necessary to perform the impact analysis.

Qualitative and quantitative information when available is provided for Greenland, Kommuneqarfik Sermersooq Municipality, and specifically for Nuuk , Kapisillit and Qeqqata Kommunia.

Information on local uses is extracted from the interview based on Local Use Study, performed specifically for this project and which full text in Danish can be found in Annex 5 chapter 15 (Skydsbjerg, 2010).

The list of persons, focus groups and organizations consulted for collecting of information for the baseline study can be found in Chapter 9. Furthermore, research reports and other relevant reports and studies, which are listed on chapter 10, have been consulted.

5.2 Demographic profile

5.2.1 Country profile

Greenland has had home rule from Denmark since 1979. On June 21, 2009, the new constitution was introduced after the referendum for the Government of Greenland in November 2008, and country status then changed to “self-rule”. Greenlandic is now the only official language in Greenland. Under the Government of Greenland, Greenland will become a subject under international law in matters that are within its jurisdiction. Greenland can then enter into agreements and establish bilateral and multilateral relationships with other states. Greenlandic citizens have exactly the same rights as any other person born in the Kingdom of Denmark (Rigsfællesskabet). Furthermore, two Greenlandic-elected representatives are elected to the Danish national parliament. Greenland is an autonomous country within the Kingdom of Denmark and is inhabited by Greenlanders, or Kalaallit, mainly Inuit population along with about 10% Danes and other Europeans.

It is important to emphasize that this report does not distinguish between ethnicity, rather whether people are born in or outside Greenland. The Danish State recognized Greenlanders as a people in 2009 when the Greenland self-government was initiated. However, for the purposes of citizenship, Greenlanders are considered Danish, travelling on Danish passports and benefit from many of the same rights in Denmark as Danes do.

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As of 1 st January 2011, the total population of Greenland was 56,615.Greenlanders who live in 18 towns and about 60 settlements stretched over 2000 km, primarily on the west coastal areas. A total of 47,857 people live in towns, 8,239 people live in settlements and 519 people live in other unclassified locations (stations, farms and unknown) (Grønlands Statistik, 2011). The country has been divided into 4 municipalities since 2009:

• Municipality of Qaasuitsup Kommunia • Municipality of Qeqqata Kommunia • Municipality of Kommuneqarfik Sermersooq (ISUA project location) • Municipality of Kommune Kujalleq.

The towns consist of a population between 69 (Ivittuut) and 15,862 (the capital and main town, Nuuk, Kommuneqarfik Sermersooq). Kommuneqarfik Sermersooq consists of four towns: Nuuk, Paamiut, Tasiilaq, and Ittoqqortoormiit.

Figure 5-1 shows the 4 municipalities and main towns in Greenland. Each settlement, sometimes characterized as a village, consists of a population between 1 to over 500 (eg.Kangerlussuaq), the majority having around 60 inhabitants. The smallest settlements are mostly sheep farmers in south Greenland (Grønlands Statistik, 2010).

The means of transportation in Greenland are by boat, helicopter and/or airplane. There are no roads or railways connecting towns and settlements (there are very few exceptions).

Areas by the coast are the most densely populated.

Nuuk, the capital of Greenland is the largest town closest to the Isua iron ore deposit which is located some 150 km northeast Kapisillit is a settlement about 30 km south of the project area and is within Kommuneqarfik Sermersooq. This settlement also has a satellite settlement for recreational houses. As of 1ts January 2011 86 people live in Kapisillit. Qoornoq is a former settlement with a fishing factory, but is now only inhabited in the summer.

5.2.2 Ethnic composition

Greenland is inhabited by Inuit and Danes as well as a small number of other foreigners. According to earlier studies by Statistics Greenland the ethnic groups can be distinguished by either parent’s birthplace. Approximately 90% (or 51,000 people) of the population in Greenland have at least one of the parents born in Greenland. 6,282 people are born outside Greenland, of whom 5,416 are born in Denmark (Statistics Greenland, 2008 and 2009).

In 2011 88.8 % of the population were Inuit and 11.2% were born outside of Greenland. Danes are the largest population group born outside Greenland, followed by few people from Thailand, Sweden, Iceland and the Philippines (Greenland in figures, 2011).

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100

90

80

70

60

50

40

30 Percentage 20

10

0 Greenland Nuuk (town) Kapisillit (settlement) Male Born in Greenland Male Born outside Greenland Female Born in Greenland Female Born outside Greenland

Figure 5-2 Distribution of population by birth place

5.2.3 Languages spoken

The majority of people in Greenland speak Kalaallisut (Greenlandic), which is a West- Greenlandic dialect of the Inuit-language. There are two very distinctive dialects used in Greenland, Inuktun (Polar Eskimo, Thule or Avanersuarmiutut dialect) and in East Greenland, Tunumiutut. Within these three main groups there are dialectal differences, even from settlement to settlement and town to town (Rischel, J., 2007). According to the Survey of Living Conditions in the Arctic (Poppel et al, 2007) approximately 75% of people living in settlements judge that they understand and speak Greenlandic very well, versus approximately 60% in towns. Only a small percentage of the Danes living in Greenland assess that they speak Greenlandic very well (2%) or well (12%).

Danish is also well known and used in Greenland as a second language. Officially Danish is the first foreign language and taught from grade 1 in schools. English is taught as the second foreign language. Governmental communications and publications are generally available in Danish as well.

English is the second foreign language taught and scarcely spoken. Since 2009, when Greenland was granted self-government, the official language of Greenland became solely Kalaallisut. However, both the Danish and Greenlandic languages are spoken and used in the administration and Parliament. There has been an on-going debate for decades about the use of Danish and Greenlandic (Christiansen, 2009). The establish- ment of Kalaallisut as the sole official language can be understood as an attempt on behalf of Greenlanders to move away from the Danish colonial past. Therefore, it is expected that in the long run the use of English will become more widespread and gradually replace Danish as the second language.

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5.2.4 Key Demographic indicators

January 1, 2011. (Greenland Statistics, 2011). Inhabitants # Age distribution Gender distribution Greenland 56,615 12,681 (0-14 years) 52.9 % Male 39,978 (15-64 years) 47.1 % Female 3,979 (65+) Municipality of 21,559 4,816 (0-14 years) 52.7 % Male Kommuneqarfik (including Nuuk) 15,622 (15-64 years) 47.3 % Female Sermersooq 1,121 (65+) Nuuk 15,862 3,222 (0-14 years) 52.4 % Male (capital) 11,904 (15-64 years) 47.6 % Female 731 (65+) Kapisillit 86 13 (0-14 years) 57.3 % Male 56 (15-64 years) 42.7 % Female 6 (65+) Municipality of 9,684 2,141 (0-14 years) 53.3 % Male Qeqqata Kommunia 6,848 (15-64 years) 46.7 % Female 695 (65+) Table 5-1 Overview of key demographic indicators.

5.2.5 Number of inhabitants

In January 2011, the total population of Greenland is 56,615 with 47,857 living small towns and 8,239 living in settlements whereas 519 are living in other unclassified locations (stations, farms and unknown) There are 21,559 inhabitants in the municipality of Kommuneqarfik Sermersooq, among whom 15,862 live in the capital, Nuuk, and only 86 in Kapisillit. The Greenlandic population density is 0.14 per km 2 on ice-free areas (Greenland in figures, 2011).

The municipality of Kommuneqarfik Sermersooq is the most populous municipality in Greenland with 38% of the total Greenlandic population. The municipality covers a large part of South-western Greenland and the main part of the eastern coast, apart from the National Park in North East Greenland that was not included in the municipal division.

The Figure 5-3 Total population of Greenland (Greenland Statistics, 2011) below illustrates the changes in the total population in Greenland in the last ten years (Greenland Statistics, 2011).

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57.000

56.800

56.600

56.400

56.200 Population 56.000

55.800

55.600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Year Figure 5-3 Total population of Greenland (Greenland Statistics, 2011)

The graph shows that the total population reached a peak in 2005, where after the trend started to reverse. However, a slight increase has taken place from 2009 to 2011.

From 2005 onwards Greenland’s population has experienced a net migration after adjustments have been made for immigration and birth rates, which partly explains the decline. However, as stated above since 2009 the population has been increasing slightly. Migration patterns and trends will be further discussed in the following chapters.

5.2.6 Age and gender distribution

Greenland In 2009 - for the first time since 2005 - the total Greenlandic population grew. In total, the population increased by 258 in 2009. This increase is primarily due to the fact that there are more births than deaths, but also that emigration numbers are smaller than they have been since 1985. Immigration numbers are somewhat stable (Nordisk Statistisk Årbog 2010).

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90-94

80-84 Female Male 70-74

60-64

50-54

40-44

30-34

20-24

10-14

0-4 4000 3000 2000 1000 0 1000

Figure 5-4 Population of Greenland divided between gender and age group

Figure 5-4 shows that the male population dominates from age 24 to 74 and that the female population dominates from age 75 and up. Moreover, it shows that there is a large population of both males and females of age 40 through 49, which indicates a baby boom in the 1960s.

The high number of men can be explained by considerable immigration of males of all ages (especially from Denmark and other Scandinavian countries) looking for job opportunities.

Kapisillit Kapisillit – Greenlandic for ‘the place where salmon live’ – is composed of 86 inhabitants (Greenland Statistics, 2010). It is located around 100 km north-east of Nuuk, and 30 km from the proposed ISUA project port site.

The main activities are fishing, hunting and tourism. The settlement has its own school, church and grocery shop.

Because of the small number of inhabitants, Kapisillit has a very different population distribution than the trends observed for Greenland as whole, in Kommuneqarfik Sermersooq and in Nuuk. In Kapisillit, males far outnumber the females in the settlement, and men of working age are found in the largest number. This pattern is often found in settlements, where females move away permanently for educational purposes and for jobs offered in towns whereas single males have a strong connection to their parents and immediate family and thus stay in the settlements (Mobility Study, 2010). More details on mobility and settling patterns are presented in chapter 5.2.10.

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5.2.7 Population statistics

Rate Reference year Total fertility rate 2,359 live born per 1,000 women 2009 between 15-49 years old Life expectancy 71.6 (female), 66.6 (male) 2008 Infant mortality rate 7.1 deaths per 1,000 live births 2009 Total death rate 8.9 deaths per 1,000 inhabitants 2010 Male death rate 8.2 per 1,000 inhabitants 2010 Female death rate 6.9 per 1,000 inhabitants 2010 Population growth rate 0.29 % 2010 Net migration -160 inhabitants 2010 Table 5-2 Fertility and death rates in Greenland

5.2.8 Mortality and death rate

The death rate for male population is slightly higher than that of the female population. In average, between 2005 and 2011, the death rate was about 0.92% for men against 0.78% for women. Further, between 2005 and 2009, 14.69 % of all Greenland born male deaths are caused by suicide or accidents (Greenland Statistics, 2009).

The main causes of death, besides accidents, suicide and homicide, are cancer, and brain stroke. The main public serious diseases are chronic obstructive pulmonary disease or “smoker’s lungs” (about 70% of the population smoke) and cardiovascular diseases (Bjerregaard, 2004). The general health status of the Greenlandic population will be discussed later in this report, including suicide and its occurrence in the Greenlandic context.

The infant mortality in comparison for 1999 was 17.6 deaths per 1,000 infants born (Greenland Statistics, 2010). In Denmark in 2009 the infant mortality rate was 4.0 deaths per 1,000 infants born ( United Nations World Population Prospects: 2011 revision , 2011).

Infant mortality rates differ considerably between the four Greenlandic regions. The lower rate in Sermersooq Municipality is explained by better accessibility to health care (Bjerregaard, 2004).

To combat the high infant mortality rate the Ministry of Health has started a number of different measures especially for preventive and health-promotive guidelines for health care workers (Statistics Greenland, 2008).

5.2.9 Fertility and life expectancy

Life expectancy is significantly lower than that of other Nordic (Nordic Database, 2010) and Arctic countries, with men living an average of 66.6 years and women 71.6. This can be compared to an average life expectancy for men and women in Denmark of 77.1 and 81.2 (Danmarks Statistik 2009:2010), and 76.4 and 82.4 in the European Union 1 (Eurostat

1 The European Union is used to denote the 27 countries that make up the European Union. They are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom

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2008), respectively. The lower life expectancy is reflected by the circumstance that there are relatively fewer older people in Greenland than in other parts of the Kingdom of Denmark, i.e. Denmark and the Faroe Islands (Denmark Statistics, 2009).

Greenland’s total fertility rate is the highest in the Nordic countries, closely followed by the Faroe Islands with 2,333 and Iceland with 2,221 (Nordic Databank, 2010). In Greenland a woman has, on average, 2.3 children during the course of her life. To put these figures in context, on average, a Danish woman will have 1.8 children during the course of her life, and a woman from the European Union will have 1.59 (Eurostat 2009).

5.2.10 Migration

Between 2009 and 2010 - for the first time since 2005 - the Greenlandic population grew. This is partly explained by a reduction in emigration rates and the birth rate increasing while immigration rates have stayed somewhat the same (Nordisk Statistisk Årbog, 2010). Unsurprisingly and due to the fact that Danish is the second language in Greenland, the most popular emigration destination is Denmark. According to the Nordic Statistical Yearbook, in 2009, out of a total of 2,740 Greenlanders who emigrated, 2,470 did so to Denmark, followed by Iceland (78), unspecified European Economic Area countries (40) and Sweden (35).

3500

3000

2500

2000

1500

1000

500

0 2005 2006 2007 2008 2009 -500

-1000

Immigrations Emigrations Net migration

Figure 5-5 Migrations in Greenland

Greenlanders are geographically highly mobile, and it is common for people to move within the country.

In 2008, 20,639 movings to other locations were carried out within Greenland. Two thirds of these were within the same locality. There were 1,282 movings from settlement to town while movings from town to settlement were at 1,028; the net moving from settlement to town is 254 in the same year (Greenland Statistics, 2009).

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From municipality To Greenland Kujalleq Sermersooq Qeqqata Qaasuitsup Outside Undeclared municipality total municipality Greenland 3911 664 1224 891 1043 23 66 total Kujalleq 368 - 299 114 138 7 10 Sermersooq 1417 394 - 451 525 10 37 Qeqqata 950 150 430 - 368 - 2 Qaasuitsup 933 117 475 319 - 6 1 Outside 22 2 9 4 6 - 1 municipality Undeclared 21 1 11 3 6 - - Table 5-3 Inter-municipality migrations in 2009 (Greenland Statistics, 2009)

The table shows that it is most popular to move to Sermersooq Kommunerqarfik (Municipality ),including to Nuuk. The regions of North- and Mid-Greenland are also popular migratory places. The southern municipality of Kujalleq has the highest net emigration while Sermersooq has the highest net immigration.

40% of the Greenlanders expect to be moving from their current dwellings within a timeframe of five years (Mobility Study, 2010). Education and utilization of educational and professional skills are among the most important reasons for moving, especially when it comes to permanent relocations. Moreover, the willingness to move is often associated with the level of education, as highly-educated people are more willing to move than those with little or no formal education. Younger people are also more likely to move than older people: almost half of the 15-25 years old expect to move while less than 20% of the group over the age of 40 expect the same. Women are also more likely to move for educational purposes and permanently from a smaller to a bigger populated area than males. Males have a tendency to move for a temporary job in a nearby place and return to the starting point. People in settlements have a tendency to move temporarily to a nearby town, and the people in towns have a tendency to move permanently (Mobility Study, 2010).

It is noticeable that only towns with populations over 3,000 have experienced an increase in population in the period from 2005 to 2009. From 1990 through 2009 all settlements under 200 have experienced a decrease in population. Most movements in the mid-region of Greenland are moves from settlements and towns to more populated towns (Nordregio, 2010).

As previously stated, Denmark is by far the most common emigration destination for Greenlanders which could partly be due to Danish being the second language in Greenland. According to a study conducted by the North Atlantic Group 2 in the Danish Parliament in 2011, (Hvorfor Grønlændere bosætter sig i Danmark: April 2011) the primary reasons for emigrating to Denmark are moving as a child with parents or moving

2 The North Atlantic Group in the Danish Parliament is a strategic alliance between 3 of the four North Atlantic members of parliament (MPs) from the two semi-autonomous regions of the Kingdom of Denmark – two from Greenland and one from the Faroe Islands. The alliance was formed in order to strengthen Greenlandic and Faroese interests in the Danish Parliament and better represent the needs of its constituents.

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with a spouse or partner. Moving for education purposes was fourth on the list. Having a job or having started a family in Denmark, or family members in Denmark were the main reasons for staying. 51% of those who move to Denmark do not consider returning to Greenland, and only 11% often consider returning. Those who are most inclined to return to Greenland are young, childless Greenlanders between the age of 20 - 29 who moved in order to study and would have taken their education in Greenland if it was available. Reasons cited for not returning to Greenland were the expenses and difficulties associated with finding housing as well as the high cost of airfares to and from Greenland. Furthermore, the welfare system was considered poor, as were career possibilities and child-caring facilities.

5.3 Description of Society

5.3.1 Social and political organisations

Greenland is under the Danish Crown. It was granted Home Rule in 1979 and in 2009 self-government was established. Two Greenlandic-elected representatives are members of the Danish Parliament.

The Greenlandic Parliament , Inatsisartut (legislative power and assembly), is put together by 31 members elected by Greenlandic citizens for a four-year term, which meets through sessions twice a year. A Premier is elected by Inatsisartut. The Greenlandic Cabinet is put together to form nine ministries by the elected Premier. The ministries, Naalakkersuisut , form different departments. Inatsisartut proposes laws and appropriations that Naalakkersuisut must conform to and also supervises Naalakkersuisut’s activities.

The following parties exist and are active in the Greenlandic society (Greenland in figures, 2010).

Three out of the five parties form the Cabinet and are highlighted in bold.
Siumut (Forward): One of the largest parties in Greenlandic politics, founded in 1977. This party stands for social democratic affairs and equality amongst the people. Loyal to the Danish Crown and Government this party still stands for independence and self- government in Greenland.
Inuit Ataqatigiit (Unified Inuit): Left wing oriented party founded in 1976 with demands of independence and recognition as one people. Loyal to the Danish Crown and Government the party is considered a socialistic party.
Kattusseqatigiit Partiiat (Alliance of Candidates): Formerly represented by individual candidates. A formal party was founded in 2005. This party is mostly represented in the northern part of Greenland.
Demokraatit (Democrats): A social liberal party founded in 2002 in the middle of the two political wings in Greenland.
Atassut (Unity): This party was founded in the late 1970’s. Loyal to the Danish Crown and Government this party of green liberals stands for unity within the Royal Danish Realm.

The current Cabinet (November 2009 to date) is a political cooperation between Inuit Ataqatigiit , Demokraatit and Kattusseqatigiit Partiiat (www.nanoq.gl ).

The figure below shows the organisation of the Greenlandic Government.

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Parliament of Greenland

Government of Greenland

Minister for Minister for Minister for Minister for Minister for Minister for Minister for Family, Premier and Housing, Education, Minister for Finance Fisheries, Hunting Industry and Health Culture, Church Minister for Infrastructure Research and Domestic Affairs, and and Agriculture Labour and Gender Equality Foreign Affairs Nordic Cooperation Nature and Transport Environment and Deputy Minister Ministry of Ministry of Ministry of Tax Agency Ministry of Fishing, Hunting Health Ministry of Education, The Industry and Minister of and Family, Research and Premier’s Labour Domestic Affairs, Property and Agriculture Culture, Church Nordic Cooperation Office Nature and Emergency and Gender Equality Environment Economy and Management Agency for Personnel Agency Bureau of Health and Agency Greenland Minerals and Prevention Culture, Education, Representation, Petroleum Research and Copenhagen Infrastructure Ecclesiastical Agency Ministry of National Board Affairs Agency Finance of Health Department of Foreign Affairs Ministry of Housing, Infrastructure and Transport Greenland Representation, Brussels

Figure 5-6 Greenland Government organisational chart (www.nanoq.gl, April 2011)

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Ministry Responsibilities The Premier’s Office Secretariat Greenland representation in Copenhagen Information activities Bureau of Corporate Governance Shareholder role regarding the Self-Governance companies Departments: • Department of Foreign Affairs • Legal and Justice Department • Climate Ministry of Housing, Authority for buildings, explosives and fire Infrastructure and Transport Land planning and emergency response plans Environment and nature protection (administration of international agreements) Utilities Housing Transport Agencies: • Property and Emergency Management Agency • Infrastructure Agency Ministry of Finance Budget Burden and task allocation Structure policy Tax policy Block subsidy Statistics Greenland Nordic cooperation

IT management Common services

Agencies: • Tax Agency • Economy and Personnel Agency Ministry of Fisheries, Hunting Living resources and Agriculture Fisheries Hunting Control and sanctions Agriculture Fisheries Unit Division of Wildlife Management Ministry of Industry and Labour Authority for business and nutritional matters Labour market policies Occupational safety and health legislation Veterinary matters

Bureau of Minerals and Petroleum Authority for regulations and tasks regarding the oil- and minerals area Ministry of Family, Culture, Social care and security benefits Church and Gender Equality Social development plans Institutions Care of the elderly Equality MIPI – Documentation Centre on Children and Youth The Church Ministry of Health Health Services Hospitals Settlement consultations Dental care Health research

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Alcohol treatment centre Health education

Health and Prevention Agency Ministry of Education, Public schools Research and Nordic Educational institutions Cooperation Cultural matters Sport Language policy Media Museums and archives The Research Office Agencies: • Culture, Education, Research and Ecclesiastical Affairs Agency Ministry of Domestic Affairs, Municipalities Nature and Environment Agencies in settlements Citizens’ council in Pituffik The Environmental and Nature Protection Agency Nature Protection Management Plan for the World Heritage site of Ilulissat Icefjord Table 5-4 Overview of the ministries and their responsibilities ( www.nanoq.gl , March 2011)

5.3.2 Municipal Administration

The 4 municipalities, Kommune Kujalleq, Kommuneqarfik Sermersooq, Qeqqata Kommunia and Qaasuitsup Kommunia have these following fields of responsibilities: • Culture and education, • Social, welfare, and health issues, • Economy and municipality taxes, • Planning, housing and environment

The political work in Kommuneqarfik Sermersooq is laid out to six standing committees (www.sermersooq.gl ): • Economy & Business committee • Welfare committee • Development committee • Infrastructure & Environment committee • Business Development committee • Labour Market committee

The organisation of Kommuneqarfik Sermersooq, the municipality Nuuk is located in (and is the main town) is shown in the figure below.

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Figure 5-7 Kommuneqarfik Sermersooq organisational chart ( www.sermersooq.gl , January 2013)

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The national organization of municipalities, KANUKOUKA (www.kanukoka.gl ) attends to issues of common interest for the municipalities, providing coordination, strategic planning, capacity building, political lobby, etc. KANUKOKA has the following working areas: • Education and culture • Social and human life (Social og Sundhed) • Economy and taxes • Engineering and environment (Teknik og Miljø) • Staff and salaries • Legislation, administration and IT • Settlements • Hearings • Structure reform • Regional development strategy

5.3.3 Public Authorities covering the Danish Realm

The Danish Working Environment Authority The Danish Working Environment Authority is an agency under the Ministry of Employment and is the authority which contributes to the creation of safe and sound working conditions at workplaces.

The authority is responsible for inspections of companies and has authority to penalize enterprises which do not comply with the working environment rules.

The Danish Working Environment Authority in Denmark and Greenland has a total of 750 employees placed in the Copenhagen head office as well as in the five local centers – one of these in Greenland. Greenland has its own working environmental act and the Working Environment Authority in Greenland is administrating and exercises its authority according to this act. (www.arbejdstilsynet.dk , January 30, 2013)

Joint Arctic Command The joint arctic command was established in October 2012 with a merger of Island Command Greenland and Island Command Faroes. The Joint Arctic Command has its main headquarters located in Nuuk.

The command’s main tasks are the military defence of Greenland and the Faroe Islands, surveillance, show of sovereignty, fishing inspection, search and rescue, environmental surveillance, pollution control, hydro graphic surveillance and support to the civilian society. The territorial command reaches from the waters of the Faroe Islands in the East to The Greenland Sea and the Arctic Ocean in the North, to the Denmark Strait, Irminger Sea, David’s Strait and the Baffin Bay between Canada and Greenland in the West.

In addition to the Headquarters in Nuuk, the Joint Arctic Command has a liaison element in Tórshavn (Faroes), a liaison element at Thule Air Base as well as smaller units at Kangerlussuaq, Station North, Daneborg, Mestersvig and at Air Base Aalborg (Denmark). (www.forsvaret.dk , January 30, 2013).

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Danish Maritime Authority The Danish Maritime Authority is a governmental agency under the Ministry of Business and Growth. The Danish Maritime Authority holds responsibility for: • The construction, equipment and operation of Danish ships (including safety, terror prevention, navigational regulations, manning, occupational health and environmental protection) as well as port State control of foreign ships calling at Danish ports; • Ship registration; • Seafarers’ employment, health and conditions of social security; • Shipping policy, maritime law as well as industrial policy, both nationally and internationally; • Tasks related to buoying at sea and navigation marks ashore (lighthouses and buoys), including ships and repair workshops.; • Navigational information in the form of navigational analyses, warnings, GIS and specialist publications; • The national pilot authority;

The Danish Maritime Authority consists of the central authority, eight survey offices, including the office in Nuuk, as well as the Centre of Maritime Health and Safety on the island of Fanø, Denmark. ( www.dma.dk , January 30, 2013).

Administration of Justice in Greenland The courts exercise judicial power in Denmark. The Court of Greenland is part of the Danish courts, and the highest authority is the Supreme Court in Copenhagen.

The Courts of Greenland consist of 18 district courts, the Court of Greenland and the High Court of Greenland. Most cases are heard in the first instance by the district courts. The district court judges are not lawyers but lay judges with special education and thorough knowledge of the Greenlandic society. The Court of Greenland processes legally complicated cases in the first instance and handles supervision and education of district judges. The judges in the Court of Greenland and the High Court judge of Greenland are lawyers. Rulings issued by the district courts and the Court of Greenland may be brought before the High Court of Greenland. Rulings issued by the High Court of Greenland may, with the permission of the Appeals Permission Board, be brought before the Supreme Court in Copenhagen.

The Courts of Greenland employ approximately 70 persons. ( www.domstol.dk , January 30, 2013).

The National Police The National Police Service (Rigspolitiet) consists of 14 police districts of which one is Greenlandic district. The district is headed by a commissioner based in Nuuk.

The police districts take care of emergency tasks, initial investigation, daily patrolling of the local area, road traffic tasks, police dog assignments and special events where the police are to render assistance. If an investigation of a case is comprehensive and time- consuming, police officers from specialised investigation sections may be assisting the district.

Further to criminal investigations the Greenland Police is responsible for the coordination of Search and Rescue (SAR) operations in Greenland. ( www.politi.dk , January 30, 2013).

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5.3.4 Labor unions – civil society organisations

Greenland has a long tradition of workers organizations and has a variety of civil society organizations with different purposes.

The list below summarises the main labour unions and civil society organizations. The organizations of relevance to the project are further described in this chapter.

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Name in English Name in Danish Name in Greenlandic Workers and employers organizations Labour union Arbejdernes Fagforening Sulinermik Inuussutissarsiuteqartut Kattuffiat SIK Teachers union Lærernes Fagforening I Ilinniartitsisut meeqqat Grønland atuarfianeersut kattuffiat Pedagogues' union Pædagogernes Fagforening Perorsaasut Ilinniarsimasut Kattuffiat Students' union Foreningen for studerende i Kalaallit ilinniagaqartut kattuffiat Grønland Office workers' union Funktionærenes/tjenestemænds Atorfillit kattuffiat fagforening Nurse's association Grønlands Peqqissaasut kattuffiat sygeplejerskeorganisation Telecommunications Teleteknikere Attaveqaatilerisut kattuffiat technicians' union Konstruktør Association Konstruktørforeningen Konstruktørit kattuffiat Legal, economy, Jura, økonomi, administration, Aningaasaqarneq, allaffissorneq, administration, forvaltning, forskning, misissuineq, ilinniartitaaneq, management, research, undervisning, kommunikation og attaveqaqatigiinneq, aqutsinerlu education, communications ledelse. Technical Union Teknisk Landsforbund Teknikerit, designerit konstruktørillu Confederation kattuffiat State employees office Statsansatte kontorfunktionær Naalagaaffimmi allaffimmit workers association forening kattuffiat Fishermen and Hunters’ Fiskeres og fangeres forening Piniarnermik Aalisarnermillu Association Nakkutilliisut Peqatigiiffiat Journalist Association Journalist Forening Tusagassiortut Peqatigiiffiat Dental assistant, dental Klinikassistenter og Peqatigiiffik Kingut technicians association tandteknikernes forening The Danish Medical Den almindelige danske Qallunaat nakorsat peqatigiiffiat Association lægeforening Engineers’ association Maskinmesternes forening Maskinmesterit kattuffiat Radio Operator Association Radiotelegrafistforening Radiotelegrafistit kattuffiat Supervisor Association Arbejdsleder Forening Sulisunik Siulersuisut Katuffiat Danish Dental Association Dansk Tandlægeforening Qallunaat Kingutilerisut Kattuffiat Greenland employers' Grønlands Arbejdsgiverforening association GA Employers' Association Arbejdsgiverforening - Nunaqavisissut Suliffiutillit Kattuffiat (Greenlandic speaking) (NUSUKA) Graduate association in Akademikernes Kalaallit Nunaanni Ilinniagaqartuut Greenland sammenslutning i Grønland Kattuffiat Nurse union - Sygeplejerskernes fagforening Peqqissaasut Kattuffiat (PK) (Association of )ex-workers SIK from Maarmorilik and Olivin mine Organizations related to business and development Arctic business network

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NGO’s and organizations of fishermen and hunters Nature association Naturforening AVATAQ – Pinngortitaq avangisillu peqatigiiffik ICC Inuit Circumpolar ICC ICC Council Organisation of fishermen Fiskere og fangeres Kalaallit Nunaanni Aalisartut and hunters, national and organisation. Nationalt og lokalt Piniartullu Kattuffiat KNAPK, regional Aalisartut Piniartullu Peqatigiiffiat (APP) Other civil society organizations Women’s association Kvindeforening Arnat Peqatigiiffiat Asscociation for the elderly De ældres forening Utoqqaat Peqatigiiffiat Rotary Club Lions Club Sport associations Association of Greenland Foreningen af Grønlandske children Børn Nanu children Nanu Børn Save the children Red Barnet Friends of Nuuk Fjord Nuuk Fjordens Venner Nuuk Kangerluata Ikinngutai AVATAQ AVATAQ AVATAQ Table 5-5 Civil society organizations in Greenland

5.3.5 Labor Unions

There are a number of active Greenlandic labour unions in the country. The largest and the most powerful one is Sulinermik Inuussutissarsiuteqartut Kattuffiat (SIK). The organisation, now with over 4,000 members, was founded in 1956 with the support from the Ministry of Greenland and the Danish Labour Organisation (LO). Mining workers are often associated with and represented by SIK.

Full-time fishermen and hunters are at national level organised in KNAPK, and at local level APP. The organisation works in the interests of the fishermen and hunters and participates in hearings when quotas for fishing or hunting are determined. There are currently 2000 members.

There are a number of other unions such as the academic and graduate union with about a 100 members and the health care workers union with about 250 members. These are all headquartered in Nuuk.

Women are organised in every town and most large settlements in the women’s associations. The organisations focus both on preservation of the traditional female handicraft and gender equality.

Elderly people are organised through the elderly people’s organisations in towns in order to work for the interests of the elderly people such as care conditions in the nursing homes or activities for the elderly.

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5.3.6 NGOs

Greenland has a tradition of civil society organisations, although it is not until recent years that environmental organisations have appeared, of which the leading organisation is AVATAQ and to some extent Timmiaq. In recent times there has been conflict between Greenland and Greenpeace, which sailed two ships into Greenlandic waters in order to protest against the Scottish group Cairns drilling platform. The Greenlandic government strongly criticised Greenpeace’s actions, arguing that Greenpeace had no right to attempt to hinder the economic development of the country (Danish television TV2: 29.05.11). Relief organisations on the other hand have had much success, such as the Cancer Society and Nanu Børn.

5.3.7 Employers’ organisations

There are two employers’ organisations in Greenland. Greenland employers’ organisation was established in 1966 and has about 400 company members within all land-based industry. NUSUKA is another employers’ organisation consisting mostly of Greenlandic speaking employers and business owners, and it was established in 2004.

5.3.8 Gender issues

It is apparent from the earlier sections on population and gender and also from chapters below that there is a shortage of women compared to males in Greenland among the working age. This is due to the immigration of men from Denmark that moving to Greenland for a job. Additionally, it is the Greenlandic women who emigrate to Denmark for educational purposes and sometimes with their husbands.

Another reason for a higher population of women over age 74 compared to male population of the same age is the high accident rates among males (as in other Arctic areas, Hamilton and Rasmussen, 2010) and male suicides.

The polarisation of gender in the labour market in Greenland shows that women are overrepresented in the public service sector (health and education, administrative sectors). The unemployment rate among women compared to men is significantly lower.

Women tend to be paid less than men in Greenland, with an average wage gap of 59,000 DKK or 40% in 2008, according to Greenland Statistics. This compares to a wage gap of 67,000 DKK or 23% in Denmark (Danmarks Statistik and 17.6% in the EU overall (Eurostat).

Furthermore, they are also underrepresented in leading roles in the society which has led to an increased focus on getting more women into leading jobs even though women are starting to be better educated than men.

In 2011 gender equality was another responsibility added to the Ministry of Family, Culture, Church, and Gender Equality.

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5.4 Socio-economic conditions

5.4.1 Economy

In this section selected socio-economic aspects will be reviewed, which will serve as indicators for the long term monitoring of the socioeconomic impact of the project. These aspects are:

• Income • Household composition • Cost of living • Employment by business and occupation • Unemployment • Description of National Economy • Local Business • Tourism

5.4.1.1 Income – average income

The following table shows the average taxable income per household (before tax) and shows that the average income for both Nuuk and Sermersooq Municipality are well above the national average. Kapisillit, however, is well below national average in this respect.

Greenland (average, all municpalities) 328,275 DKK Sermersooq Municipality 385,838 DKK Nuuk 433,406 DKK Kapisillit 231,758 DKK Table 5-6 Taxable annual household average income (in DKK) (Greenland Statistics, 2010)

These figures can be compared to 443,900 DKK per household in Denmark (Danmarks Statistik 2010).

The following table shows the taxable personal income according to place of residence and place of birth. Similarly to the average household income, the personal income in Nuuk and in Kommuneqarfik Sermersooq is well above national average while well below in Kapisillit. For comparison, average personal taxable income in Denmark is 301,300 DKK (Danmarks Statistik 2010) and 234,765 DKK (Eurostat 2006).

Moreover, significant differences in personal income between those born in Greenland and those born outside of Greenland are displayed. The average personal income of those born outside of Greenland equates with more than the double of the average income of those born in Greenland. This is due to the large proportion of highly skilled and highly-remunerated jobs that are held by foreign workers, especially the Danish workforce.

Total Born in Born outside Greenland Greenland Greenland total 176,885 153,183 378,364 Sermersooq Municipality 214,708 175,689 406,679 Nuuk 244,000 NA Kapisillit 114,000 NA

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Table 5-7 Taxable average personal income (in DKK) per place of residence and place of birth (Greenland Statistics, 2010)

The following table displays the taxable personal income according to gender, per place of residence and place of birth. It further illustrates inequalities in personal income for people in Greenland, with the dimension of gender also taken into account. In addition to the significant differences mentioned above, there are significant differences between men and women’s average personal income, both between those born in Greenland and those born outside of Greenland.

Men Women Total Born in Born Total Born in Born Greenland outside Greenland outside Greenland Greenland Greenland 204,209 169,080 421,103 145,732 136,477 275,980 total Sermersooq 255,378 197,676 460,140 169.153 154,055 289,010 Municipality Table 5-8 Taxable average personal income (in DKK) according to gender, place of residence and place of birth (Greenland Statistics, 2010)

It is essential to note that the economy of many Greenlandic households is not only dependent on wage jobs or taxable incomes, but also includes the use, consumption and/or exchange of produce of traditional activities, like hunting, fishing, handicraft, harvesting, etc. – a so-called ‘mixed cash- and harvest-based economy’ (Poppel et al., 2007).

Greenlandic people are, to a large degree, satisfied with the combination of salary income and hunting/fishing income, with less than 5 % unsatisfied with the combination (SLiCA, 2007).

5.4.1.2 Household composition

The following tables show the number of persons per household in Greenland, both in towns and in settlements. Persons registered at the same address are considered to be of the same household.

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Persons in household Number of households dependent on number of persons In towns In settlements 1 7,424 927 2 4,723 645 3 2,959 446 4 2,239 400 5 1,239 290 6 541 168 7 222 87 8+ 157 61 Total number of persons in towns 47,093 8,731 Total number of households in towns 19,504 3,024 Average number of persons per household 2.4 2.9 Table 5-9 Household composition in towns and in settlements (Greenland Statistics, 2010)

Overall, the majority of households consist of 1-3 persons, with a slight tendency to be of a smaller size in towns.

It is also very common with two generations living under the same roof for 54% of the households. The same tendency is observed in Nuuk (56%), but is smaller in other parts of central Greenland (41%), (SLiCA, 2007).

Moreover, household adults are also involved in a number of subsistence activities. While almost ¾ of household adults in Nuuk are involved in maintaining household camp and almost half involved in harvesting, hunting and/or fishing, the household adults in Greenland in general are proportionally more involved in harvesting, hunting and/or fishing and in butchering/preserving food. Also, approximately 7% of the adults are involved in an activity where fish, meat, berries, carvings or other goods are sold (SLiCA, 2007).

Nuuk Greenland total Berry picking 60% 71% Fish 61% 69% Preserve meat or fish 38% 55% Make and repair equipment or do household repairs 69% 73% Maintain a household camp 37% 40% Hunt caribou, moose or raise sheep 48% 35% Manufacture native crafts for own use 20% 20% Hunt see mammals 33% 43% Table 5-10 Participation in subsistence activities (SLiCA, 2007)

The Greenlandic people are also keen on giving and receiving traditional food from other. While over 70% of Greenlanders have paid for traditional food in the last 12 months, 39% have received traditional food in exchange for assisting others and 23% received traditional food in exchange for other traditional food (SLiCA, 2007). A culture of exchanging traditional food with others or providing assistance for others is generally very strong in the Arctic countries. In Nuuk the proportions are slightly smaller than in the country as a whole, most likely due to a more modern lifestyle with western influences found in the capital.

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5.4.1.3 Cost of living: consumer price index, construction price index, comparison of prices to other countries

Nuuk has an overall cost of living index 3 which equals to the with middle cost of living locations, and it is currently ranked as the 134th overall most expensive place in the world for expatriates to live in out of approx. 300 international locations.

Over the last ten years increases in the consumer price index have been relatively pronounced, with a 50% increase in prices since 1995. A steep annual increase of almost 7% was noticed between 2007 and 2008. For comparison, the EU consumer price index remained fairly stable during 2000 – 2007 at around 2%, with a spike of 3.7% in 2008. In Denmark, the CPI recorded a low of 0.9 in 2004, and a high of 3.6% in 2008, fluctuating between these levels over the last decade (Eurostat 2010).

Year January July Annual Average Pct. annual increase 2000 104.7 105.3 105.0 4.76% 2001 107.7 108.7 108.2 2.96% 2002 112.2 112.9 112.6 3.86% 2003 113.8 115 114.4 1.62% 2004 117.4 117.7 117.6 2.68% 2005 118.7 119.3 119.0 1.22% 2006 121.4 122.7 122.1 2.50% 2007 124.1 124.8 124.5 1.93% 2008 130.8 136.4 133.6 6.85% 2009 136.7 137.2 137.0 2.45% 2010 138.7 140.4 139.6 1.86% Table 5-11 Consumer price index annual increase (Greenland Statistics, 2010), July 1995=100

Complementing the consumer price index, the construction price index also displays a relative increase in prices, this time in freight, wages and material.

2006 2007 200 8 2009 2010 Jan July Jan July Jan July Jan July Jan July Total 100.0 102.9 105.1 109.7 111.7 112.5 115.4 115.5 116.3 117.4 Materials 100.0 103.3 106.8 115.5 118.2 118.9 122.8 122.0 121.5 121.9 Freight 100.0 100.5 102.2 102.2 101.3 104.1 110.6 109.6 106.7 111.6 Wages 100.0 102.8 104.0 105.7 107.4 108.2 109.8 110.8 113.1 114.4 Table 5-12 Construction price index (Greenland Statistics, 2010) ,January 2006 = 100

The total Construction Price Index is at 117.4 in July 2010, increasing from 115.5 in the previous year and from 112.5 in July 2008. The relative increase is explained by a large increase in prices of freight as well as smaller increases in wages and material. The construction price index closely follows the Danish index as nearly all construction material is imported from Denmark.

3 The overall cost of living index comprises the prices for defined quantities of the same goods and services across 13 Basket Groups. These are the following: Alcohol and Tobacco; Clothing; Communication; Education; Furniture and Appliance; Grocery; Healthcare; Household; Miscellaneous; Personal Care; Recreation and Culture; Restaurants, Meals Out and Hotel; Transport.

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5.4.1.4 Employment by business and occupation

The following table describes the total employment in Greenland by sector. The top 5 employment sectors are highlighted in bold and italic.

Total Per cent of Born in Born in Born Born all Greenland Greenland outside outside industries Greenland Greenland Sum Per cent Sum Per cent Sum Per cent Total 29,473 22,924 77.8 6,549 22.2 Agriculture, hunting and forestry 14 0.0 14 100 0 Fishing 1,442 4.9 1,229 85.2 213 14.8 Extractive industry 159 0.5 36 22.6 123 77.4 Industry 924 3.1 815 88.2 109 11.8 Power, gas, heat and mater supply 421 1.4 291 69.1 130 30.9 Building and construction 2,904 9.9 1,498 51.6 1,406 48.4 Trading and repair 5,004 17.0 4,393 87.8 611 12.2 Hotel and catering 860 2.9 570 66.3 290 33.7 Transportation 2,582 8.8 1,926 74.6 656 25.4 Financial and insurance 165 0.6 112 67.9 53 32.1 Real property, rental and commercial 1,281 4.3 901 70.3 380 29.7 Public management, national 13,064 44.3 10,587 81 2,477 19 defence, and social insurance Education 50 0.2 45 90 5 10 Health and welfare institutions etc. 86 0.3 70 81.4 16 18.6 Other community service activities 515 1.7 436 84.7 79 15.3 International organizations ------Undeclared 2 0.0 1 50 1 50 Table 5-13 Employment by sectors in Greenland (Greenland Statistics, 2009)

The major employment sector is public management, national defence and social welfare (which also includes health care and the educational sector), employing 44.3% of the Greenlandic working force. Next come the trading and repair (service industry) as well as the building and construction industries, employing 17% and 10% of the workforce, respectively.

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Total Female Male Sum Sum Sum Total 29,473 13,005 16,468 Agriculture, hunting and forestry 14 1 13 Fishing 1,442 91 1,351 Extractive industry (mining) 159 10 149 Industry 924 281 643 Power, gas, heat and mater supply 421 74 347 Building and construction 2,904 246 2,658 Trading and repair 5,004 1,974 3,030 Hotel and catering 860 471 389 Transportation 2,582 628 1,954 Financial and insurance 165 104 61 Real property, rental and commercial 1,281 466 815 Public management, national defence, 13,064 8,347 4,717 and social insurance Education 50 28 22 Health and welfare institutions etc. 86 60 26 Other community service activities 515 224 291 International organizations - - - Undeclared 2 0 2 Table 5-14 Employment by sectors and gender in 2006 (Greenland Statistics, 2010)

The previous table sheds light on the gender distribution of the workforce by industry. Women are mostly employed in the public management, national defence and social insurance sector (also including health care and the educational sector), with over 60% holding a position in the sector. The sector fits the Greenlandic women’s lifestyle well and thus has been dominated by women since the late 1970’s.

Their male counterparts, on the other hand, dominate the building and construction industry as well as the more traditional fishing and hunting industries.

The largest share of the working force born outside Greenland is to be found in the building and construction industry as well as the extractive industry, with, respectively 48.4% and 77.4% of the industry’s workforce born outside Greenland.

In addition to having a high rate of foreign workers, the extractive industry is also largely dominated by a male workforce. Women only make up 6.3% of the total workforce in that industry.

5.4.1.5 Unemployment

The unemployment data 4 are based on people born in Greenland, between 15 and 63 years of age, not under education and vacation, registered at the municipality in 2009 as being unemployed. There are certain marginalised groups that do not register as unemployed, those who are, among others, seasonal workers, going through educational programs.

4 Medio unemployment is calculated as an average, for those who have been out of work in both the first and last half of a month. The number is then an approximate expression for the average unemployment.

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Medio unemployment in Greenland and in Nuuk

Total Nuuk Number of persons in average per month per average in persons of Number 2005 2006 2007 2008 2009 Total 1.682 1.541 1.497 1.160 1.210 Nuuk 372 336 333 203 148

Figure 5-8 Unemployment in Greenland and in Nuuk in 2010 and 20111 (Greenland Statistics, 2012).

The number of unemployed was, on average per month in 2009, 1,210 persons in total in Greenland. Moreover, looking at the Figure 5-8, it is possible to note a decline in the unemployment rate over the last five years, with the exception of a slight increase between 2008 and 2009 in the total population of Greenland. Medio unemployment is calculated by unemployed persons having been unemployed for both the first and last half of a given month. The numbers from 2010 and 2011 are not available in this form, because unemployment is compiled differently for these years.

In the municipality of Kommuneqarfik Sermersooq there are on average 800 skilled unemployed per month. Average unemployed per month is the proportion of unemployed persons who has been unemployed anytime during a given month. The number increases in December/January and decreases in April/May because of seasonal fluctuations (fishing/construction). There is currently a need for about 200 internships for skilled individuals. On average there are 700 unskilled unemployed in Kommuneqarfik Sermersooq per month (Flemming Enequist, Personal communication, 2010).

The medio average unemployment per month in Nuuk is currently under 2 per cent as seen in table below

Location Total Male Female Total per Per cent Per cent cent Male Female Greenland total 1394 836 559 4.4 4.9 3.8 Nuuk 177 105 72 1.6 1.8 1.4 Table 5-15 Medio average unemployment per month in Greenland and in Nuuk in 2010 by gender.

5.4.1.6 National economy

It is apparent from the above sections that the public sector is predominant in the Greenlandic business environment, compared to the semi-private (Greenland Self- Government owned companies such as Royal Greenland A/S and Air Greenland A/S) and private sectors. It is apparent that the mining sector in Greenland is not yet developed. Below it is illustrated how the public sector can be divided into administration and service as well as corporate sector:

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Figure 5-9 Overview of the public sector ( www.stat.gl )

The Public administration and service includes authorities and institutions that are generally providing services which are mainly financed by taxes and royalties. Some services are, in a small degree, paid through user’s charges.

The state sector is defined as the part still controlled and serviced by the Danish state. Some government-owned companies, such as KNR (Greenlandic radio) is considered part of the public administration and service as less than 50% of operational expenses is covered by income from products and services.

Corporate-like companies (semi-private sector) are companies under the Self- Government where over 50% of the operational expenses is covered by sale of products and services. The public companies are defined as owned by or controlled by the Self- Government. These companies are usually limited companies with the Self-Government as sole or majority shareholder. The table below is overview of the public companies.

Public companies Brief description Royal Greenland A/S Fish and shellfish production Arctic Umiaq Line A/S Passenger sea transport within Greenland Greenland Venture A/S Provides funding for development for businesses Royal Arctic Line A/S Freight handling and shipping by sea Grønlandshavnens Ejendomme A/S Transport center in Aalborg, Denmark KNI A/S (incl. Pilersuisoq, Polaroil, Neqi A/S) Retail stores, fuel distributor and meat production Pisiffik A/S Retail stores Great Greenland A/S Seal skin production NunaMinerals A/S Mining company Arctic Greenfood A/S Food production Greenland Tourism- and Business Council A/S Consultancy for onshore businesses Table 5-16 Overview of public companies in Greenland ( www.stat.gl )

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NunaMinerals A/S is a 37.1% government–owned company with about 10 year round employees. It is the only public company active in the mining sector. This company has however no operating exploitation activities.

Greenland has high public expenditure compared to the Gross National Product (over 70 % of the GNP is for public expenditure). This is also partly due to the ownership of the large companies such as Royal Greenland A/S. The public expenditure has been increasing over the last years as the expenses regarding social services, administration and IT have increased (Greenland Statistics, Offentlige finanser 2009, 2009).

The national economy is very dependent on the export from the fishing industry and the Danish yearly economy transfer of DKK 3.4 billion. This is shown in the figure below under the title “block grants”. There are few large local businesses, but rather many small businesses to make up the private sector and this does not induce much competition and economic stability in the country with the difficult infrastructure and vast geographical distances. The tax income in Greenland is low as the income level is low for a large part of the workforce.

Total income

Onshore businesses Tourism

Building and construction Raw material exploitation Fishing

Public sector

Block grants

Figure 5-10 Distribution of the total income in Greenland. Raw material exploitation in the figure means mining sector. (Grønlandsbanken, 2007)

Figure 5-10 above, shows that fishing and onshore businesses make up the largest total private income.

Within recent years the national balance of payments has been a profit being between 1.9 billion and 600 million DKK (between 14 and 6% of the GNP) ( www.stat.gl ).

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The import of goods was in 2004 3,269 million DKK, but has increased a little in 2006 where it was 3,454 million DKK. The export was in 2004 2,282 million DKK and in 2006 2,418, the export was relatively stable from 2005 to 2006. As a result of the export and import, the trade balance in 2006 was -1,036 million DKK ( www.stat.gl ). In 2010 the comparative numbers were DKK 4,953 million for import and DKK 2,329 million.

5.4.1.7 Local businesses

As the capital of Greenland, Nuuk is the centre of all trade, shipping, industry and administration. The town is the home of many branches of public administration such as Parliament, a law court, a hospital, the national library and the national museum. Moreover there are head offices of banks, travel agencies, industrial companies, restaurants and other businesses, similarly to other capitals in the world. Nuuk’s modern harbour serves as a lifeline to the outside world and as a connection to other ports in Greenland.

Among others, Royal Greenland Company, one of the largest fish exporters and processors in the world, has it’s headquarter in the town. Fish processing and exporting are all-dominating activities in Greenland and therefore also compose a major part of Nuuk’s business life.

Kapisillit is a settlement of a small size and therefore local businesses are rare. The settlement has its own grocery and is also becoming a sought-after tourist destination (when access is possible, mostly during summer months).

According to the Kommuneqarfik Sermersooq’s Business Development Politic and Strategy 2009-2013 (Kommuneqarfik Sermersooq, 2009) the following strategic focal areas, among others, are being initiated:

• Entrepreneurial and growth o Establishment of an innovation centre including advisory for business development o Contribute with the establishment of new business initiatives in order to boost the declining employment in the fishing industry • Tourism o Contribute to a cohesive infrastructure o Product development • Sustainable business development and CSR (Corporate Social Responsibility) o Environmentally friendly production o Reduce CO 2 emission • Municipality settlements o Strengthen local businesses • Capital city o Strengthen and initiate competence development among construction and service sector o Improvement of Nuuk infrastructural facilities • Cooperation and communication o Establishment of local business council o Business friendly municipality

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According to the business development department in Kommuneqarfik Sermersooq there are visionary entrepreneurial persons among locals. But these persons need practical help and knowledge to turn their visions into reality and start up the new businesses. The businesses that are developed are mostly ‘one-man’ businesses such as contractors, hair dressers and cleaning services (Fleischer, Marie Personal communication, 2010).

5.4.1.8 Mining companies in Greenland

There are a number of different mining companies doing exploration activities around Greenland. There are currently 4 exploitation permits of which one (1) is actively in production.

The company Angel Mining A/S was awarded the exploitation permit in 2008 for the Nalunaq gold deposit in South Greenland and is currently in gold production. The mine is placed about 40 km from the nearest town, Nanortalik. The mine employs about 60-80 people and has been in operation for about one year. The gold mine is located in the municipality of Kujalleq Kommune.

Black Angel Mining A/S was awarded the exploitation permit for Maarmorilik (the former Black Angel Mine) in 2008, a lead zinc mine. It is located in North Greenland close to Uummannaq. The mine is currently not in production.

Minelco A/S was awarded the Seqinnersuusaaq or Seqi exploitation permit for olivine extraction in 2005. It is located in Fiskefjorden in Mid Greenland. The mine was closed down in 2010 due to economic difficulties.

The fourth exploitation licence was awarded in 2009 to Malmbjerget Molybdenum A/S on the East coast. The mine is currently not in production.

There are several exploration activities that are close to or have sent in their exploitation application to the BMP. These include Aappaluttoq ruby project in Mid Greenland (about 60 employees) ( www.truenorthgems.com ) and the Citronenfjord project in Northeast Greenland ( http://www.businessspectator.com.au ).

5.4.1.9 Tourism

There is a lack of available information on the contribution of tourism to Greenland’s economy (Grønland Statistik 2009, 2010). Some data is available on requests from tourist office, such as the number of tourists, nationality of tourists, and duration of stay.

Nuuk sees about 2,500-3,000 tourists a year (Nuuk Kommune 2003, Nuuk Tourism, unpublished). In addition, a total of 8,300 tourists arrived at Nuuk by cruise ships in 2007, and this number is expected to double by 2008 (Nuuk Tourism, unpublished). According to Greenland statistics ( www.stat.gl – Turisme 2011:1) the number of passengers arriving in Greenland has risen from 15.654 in 2004 to 30.271 in 2010. The town is the starting point for an array of different tourism activities, especially destined for Nuup Kangerlua and to a smaller extent the surrounding archipelago. Local operators and travel agencies offer the following activities departing from Nuuk:

• Sailing trips: Fixed weekly sailing trips to the end of Nuup Kangerlua close by Kapisillit; chartered trips to the Kangersuneq fjord as well as to Lille Narsaq or Kangeq and Håbets Ø in the archipelago, among others

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• Whale safari: Chartered trips mainly in June to October, with six to twelve people per trip • Fishing trips: Chartered trips – three times a week • Hiking trips: Among others multi-day trekking between the village Kapisillit and the Ameralik fjord • Helicopter trips to the icecap east of Kapisillit or to the abandoned settlement of Kangeq, situated in the archipelago • Extreme Sports: Rock climbing and hang-gliding, etc. organized by local “Outfitters”

Due to the importance of the Capital Nuuk, it is the departure point for a number of different recreational activities, including that of the locals. Destinations are predominantly Nuup Kangerlua, Kapisillit and the abandoned settlements of Kangeq, Lille Narsaq , Qooqqut, Qoornoq and Saarloq, along with more or less scattered recreational residencies serving as bases for these activities Godthåb boating association has approximately 800 mooring points for boats, in addition to a number of mooring possibilities for smaller and larger pleasure crafts, boats used for commercial fishing as well as vessels for transportation in the open sea (DMU report number 664, 2008 from Aarhus University).

Hotel capacity is described in section 5.6.1

Figure 5-11 Recreational areas close to Nuuk. The areas are cited as recreational areas in Nuuk Municipality’s Open Air Plan. [Rekreative områder=Recreational areas; By=Town; Bygd=Settlement; Andet stednavn=other name of place]

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Above is a map showing the recreational areas close to Nuuk. All of the areas are outside the ISUA project area.

There has been no real tourist activity in the ISUA project area except for individual caribou hunters who are brought ashore from a tour boat and occasional visits from helicopter by Arnavik/Ujarassuit and Narsaq Sermia (see figure 3-1). The fjord along the project area enjoys a relatively large amount of activity in the summer season, due to two tourist offices sail guests toward the glacier Narsaq Sermia several times a week. It is estimated that in 2010 and 2011 approximately 650 to 700 guests went on trips in the Narsap Sermia fjord, which resulted in a turnover of around 1 million DKK (HS Analyse, 2011).

5.5 Education

In 2006 the Government of Greenland adopted an ambitious educational program. The overall goal was that 2/3 of the youth cohort shall have an education by 2020, which only 1/3 has today. The trend is moving in the right direction – in 2004 only 1/4 of the workforce had an education.

In assessing the level of education it should be kept in mind that the majority of jobs in Greenland's current main industry – fishing, fish processing and hunting – only rarely requires formal training or education. A large proportion of the manpower needed in growth industries may be covered by unskilled workers getting the necessary training through task-oriented courses.

One of the challenges is that the dropout rate in the education system is high. Approximately 37 % of those who start an education leave without an exam. It appears, however, that most of these dropouts restart another education or resume the same education again at a later stage.

Another challenge for Greenland is that a number of the students who leave for Denmark to complete their higher education do not return to Greenland after their graduation. There are various reasons for this, but one explanation is that the students are at the age where it is common to find a partner. Since this is particularly so with regards to the higher educated Greenlandic population, this poses a problem for the Greenlandic labour market.

However, the education progamme has resulted in the following statistics (Naalakkersuisut): • 42% more was taking an education in 2011 compared to 2005, where 3,828 was active at the end of 2011. • 46.5% more finalized their education in 2011 equivalent to 851 persons.

In April 2012 Naalakersuisut published a statement covering the education strategy for Greenland, where the overall goal is set at: at least 70% from a group in a year should obtain an education by year 2025.

The Greenland institutions are well aware of the future requirements with regards to education and labour market integration. The internet portal www.sunngu.gl targets students and provides an overview of training opportunities.

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5.5.1 Primary School

Primary school starts the year the children turn six years old and lasts for ten years. It may be completed with the FSA (general graduation) or FSUA (extended graduation). FSUA includes higher levels of Greenlandic, Danish, English and Mathematics and is in general a prerequisite for attending secondary schools and some vocational programs.

Schools are found in all towns and most villages. Students from smaller villages normally leave the village school after 6 years and finish primary school in the nearest town.

5.5.2 Secondary Education

After completing the exam in primary school, the students are able to continue to three types of secondary schools GU (General Secondary Education), HTX (Higher Technical Exam), HHX (Higher Commercial Exam) or one of several vocational educations. The student must, as mentioned above, have passed the extended exam (FSUA) in order to get into one of the three secondary schools.

Training in maritime operations is also a three year long secondary education programme, taken in Denmark. Training takes place at a ‘gymnasium’ and at a maritime training centre and targets young people who want to continue with higher education in the maritime field.

For adults, a special possibility is to join a one-year secondary education programme. The students must be 23 years or older and have at least three years professional experience. The program provides access to certain intermediate-level educations in social and health services.

5.5.3 Further Education

This education system consists of four types of education: • Vocational training • Shorter higher education • Higher educated • Other programs

For the first year ever in Greenland the national educational profile for persons over 16 years old living in Greenland has been calculated such that it can be compared to other countries – the so called ISCED profile (International Standard Classification of Education) by January 1 st, 2010. This is now possible because of the implementation of the ISCED categorisation of the educations (Greenland Statistics, 2011).

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80 69,7 70 60 50 40 30 20,9

Percent 20 9,1 10 0,3 0,1 0 schools labour and prep and ISCED 6 9th 9th grade Ph.D level ISCED 5 ISCED 4 ISCED 3 Advanced High school High Research at Research educations educations ISCED 2 academic and

supplementary Figure 5-12 ISCED educational profile 2010

The educational profile of Greenland is placed below Germany, but above Iceland, Ireland and the Netherlands in the UNESCO - Educational attainment tables.

Following are some additional explanations on the ISCED (International Standard Classification of Education):

• ISCED 2 Lower secondary (9 th grade) • ISCED 3 Upper Secondary o (3C: Vocational training) • ISCED 4 Post-secondary non-tertiary • ISCED 5 Tertiary o 5A: Tertiary: Longer higher education of at least three years’ duration as Bachelor and Master (associated with research) and professional bachelor as teacher, nurse or other o 5B: Tertiary: Shorter higher education of at least 2 years’ duration with special focus on business-related topics

Error! Reference source not found. shows, that only 18 % of women and 15 % of men born in Greenland have an education at level 3C and higher. Similarly, the percentages for men and women born outside of Greenland are 48 % and 55 % respectively. This indicates that a large proportion of the higher educated have come to Greenland precisely because there is a need for skilled and educated labor.

Proportion Total with with Born Upper Population Tertiary Tertiary education education in/outside Secondary 17 - 64 Type 5A Type 5B 3C + 5A + 3C + 5A + Greenland Type 3C years 5B 5B % Women in GL 3,205 329 762 4,296 24,500 18 outside GL 258 594 106 958 2,016 48 Men in GL 3,044 208 751 4,003 25,726 16 outside GL 1,158 823 319 2,300 4,210 55 Table 5-17 Formal education according to place of birth (Statbank)

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Vocational training

Vocational education and training (VET) include building and construction, iron and steel industry, electricians, service, office, finance and administration, IT, tourism, etc. These educations vary in length from two to five years. Some educations are limited to schooling in Greenland, while others involve some or all of the schooling in Denmark. Admission to most courses is the primary school general exam (FSA) or extended exam (FSUA).

There are eight vocational schools in Greenland:

• The School of Metal and Mechanics (Saviminilerinermik Iliniarfik) in Nuuk • The Building and Construction School (Sanartornermik Iliniarfik) in Sisimiut • The School of Commerce (Niuernermik Iliniarfik) in Qaqotoq • The School of Commerce (Niuernermik Iliniarfik) in Nuuk • The Food Service and Preparation School (Inuili) in Narsaq • The School for Fishing Industry (ATI) in Maniitsoq. (To be fusioned with Inuili) • The School for Merchant Mariners (Imarsiornermik Ilinniarfik) in Paamiut. • The School for Hunting and Fishing in Uummannaq

All vocational/professional schools run courses, further education and courses primarily for unskilled PKU and AMA. Among the unskilled workers in Greenland there are many who have participated in one or more further education courses. This acquired knowledge can through the project ‘Realkompetenceprojektet’ be transferred to reel competences.

There are two professional training schools in Nuuk: Merchant School and the Industrial and Mechanical School. The Industrial and Mechanic School trains students from all over Greenland. The programmes and majors include, among others, electrician, auto mechanic, aviation mechanic, electro technician and storage worker. The school has yearly 100 full-time students and a total of 350-400 active students (Personal Communication, 2010). It is also the home of the newly created Greenland School of Minerals and Petroleum (see section 5.9.3 for more information).

To get accepted in the common core programme (mining competences) at the Construction School in Sisimiut, the applicant must be able to use English as a workplace language. Training and teaching material are free and a stipend is awarded to students (www.sanilin.gl).

The Language Centre in Sisimiut offers language courses in English. There are both opportunities for those who need general English in their daily live and for those who need it at work. This includes the courses (‘Resource English’) specially directed towards the mining and oil sector.

The Chef School in Narsaq trains students from all over Greenland in cooking and catering at a high level. Students need to go through an acceptance procedure and the training is free ( www.inuili.gl ).

The Maritime School in Paamiut offers a basic education for marine and fishery educations. After finalising the basic training, which last 10 months, one can take additional courses. In addition, the Maritime School offers courses for seamen and skilled masters at ships, as well as training courses for sailors (www.imarsiornermik.gl).

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The Workers’ school in Qaqortoq is run by the workers’ organisation, SIK. SIK puts together courses and training to expand and update the qualifications of their members according to the needs of the industry ( www.sulisartut.gl ).

5.5.4 Higher education in Nuuk

The University of Greenland (Ilisimatusarfik) covers Master and Bachelor degrees includes:

• Economics (BA and Master) • History (Master and subsidiary) • Culture and Society (BA and Master) • Social Studies (Master and subsidiary) • Language, Literature and Media (Master and subsidiary) • Religion (Subsidiary) • Theology (BA) • Teacher (Profession orientated BA) • Social Worker (Profession BA) • Nurse (Profession BA) • Journalist (Profession BA)

In section 5.9.1 the vocational educations at Qeqqata Kommunia can be seen. The descriptions of the programs at the School of Minerals and Petroleum and ARTEK can be seen in section 5.9.1.

5.6 Physical Settings and infrastructure

5.6.1 Housing and accommodation

There is an average of 68.5 m 2 per house/dwelling in Nuuk and 57.6 m 2 in all of Greenland in 2008 (Greenland Statistics, 2009).

There are on average 2.4 inhabitants per dwelling in a town while 2.3 in a village in the whole of Greenland (Greenland Statistics, 2009). In Nuuk the respective numbers are 2.5 and 1.9.

In Kapisillit the number of dwellings (mostly one-family houses) is close to adequate, although most need maintenance or to be demolished and replaced (Nuup Kommunea, 2006).

Total 23,112 State-owned 182 Governmental property 7,973 Municipal property 5,495 Private property 7,173 Unknown 2,289 Dorm rooms and elderly 2,680 Table 5-18 Rate of owner-occupied dwellings vs. rented dwellings (Greenland Statistics, 2010)

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There are 23,112 dwellings in all in Greenland in 2010, among which 7,173 are private properties and 16,330 are either governmental or municipal properties, state-owned dwellings or dorm rooms and dwellings for the elderly. The rest of the dwellings, 2,680, are of unknown nature (Greenland Statistics, 2010). The average number of rooms for dwellings in Greenland is 2.9. In Nuuk there are 6,455 dwellings with an average size of 3.1 rooms.

Public housing is administrated by A/S INI a limited company where the Greenland Self- Government is the sole shareholder.

The housing situation in Nuuk is under much pressure as the in-migration-rate (mostly from other areas and towns from all over Greenland) has been very high for a number of years. This means long waiting lists for public housing (16-28 years) which has resulted in high renting rates. Although there are many new houses being built the waiting lists stagnate.

Even though some people living in public housing facilities buy their own houses or have shares in a housing association the pressure from the immigrants is so strong that the waiting lists are only getting longer (Copenhagen Economics, 2010).

Students from other parts of Greenland are settled into dorm rooms and student houses. In recent years the number of students has risen and consequently there is a lack of number of dorm rooms. During 2010-2013, 150-200 dorm rooms for students will be built in Nuuk ( www.nanoq.gl ).

During the last few years the town has experienced steady progress in terms of population, building and infrastructure. The bulk of the town planning’s urban development areas are being utilised and are completed. In this context the new urban area, Qinngorput, is being used, where the first families moved to in 2003.

It is estimated that expansion possibilities which exist in Qinngorput would be sufficient to meet the need for new urban areas in Nuuk up until 2016. This however assumes continued development of the land.

Building will commence in 2017 in Siorarsior fik, provided that the site has been developed prior to using the area. As seen in Figure 5-13, one of the challenges in the coming years will be to obtain space and secure areas for urban development in the immediate neighbourhood to Nuuk.

In the commercial and employment sphere it is the municipality’s goal that Nuuk shall develop further as a capital and economic powerhouse for the benefit of the town’s inhabitants and the other areas.

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Figure 5-13 Development of housing to the south area in Nuuk (red: new areas; orange: existing housing areas)

Table 5-19 shows the capacity of the hotels. Hotel capacity has risen during the last 10 years, but the statistics about hotel occupancy do not show the actual situation. One of the problems is that for example, while there are 300 beds in Nuuk, there are only 150 rooms. Therefore, if many of the trips are conducted by business people, who require individual rooms, a hotel can quickly be filled, yet still have vacant beds. Therefore, occupancy rates that are published do not reflect the actual availability of rooms for visitors on a business trips or attending conferences.

In Nuuk there are these following hotel capacities: Hotel Rooms Beds Hotel Hans Egede 150 300 Sømandshjemmet 41 150 Nordbo A/S 25 60 Heca Nuuk ? ? Table 5-19 Hotel capacities in Nuuk (Greenland Statistics, 2010)

The capacity for overnight stays in Kommuneqarfik Sermersooq is 113,949 with an occupancy rate of 45.4 %, which rate is not based on “rooms” but rather on “beds” and this is misleading.

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5.6.2 Communication

There is one Internet and phone line supplier called TELE Greenland A/S in Greenland, which is available in all towns and in most settlements. There are 22,818 telephone main lines, 55,816 cell phone connections and 11,695 Internet connections by 2008 (Greenland Statistics 2009).

5.6.3 Transport facilities and infrastructure

Transportation of passengers and freight is mainly done by ships, boats, planes and helicopters. As there are no roads or railways in Greenland between towns and settlements, the infrastructure is very vulnerable to weather and climatic conditions. Six (6) towns have a heliport for regular flights and larger settlements have a helipad (40 helipads in total) for evacuation purposes.

Air transport The major airports are Narsarsuaq and Kangerlussuaq which respectively hold 1830 m and 2810 m of runway and have regular flights to and from Denmark, and in some seasons to and from Iceland. There are 11 additional small airports near towns with shorter runways including Nuuk.

Kangerlussuaq Airport

ISUA

Narsarsuaq Airport

Figure 5-14 Map over major airports location

Air Greenland A/S is the operating national airline company owned by the Greenland Self- Government, Scandinavian Airline System and the Danish State (www.airgreenland.gl). Mittarfeqarfiit A/S, Greenland Airport Authority, administers and runs airports, heliports and helistops in Greenland and is a company under Greenland Self-Government (www.mittarfeqarfiit.gl ). Air Greenland A/S has a punctuality of 65 % within 15 minutes for all flights in 2010 ( www.airgreenland.gl ). More flights are provided during the summer months, when tourists typically visit the country.

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Boat transport and freight The 16 town ports and 60 harbours in settlements in all of Greenland have different capacities for freight ships and passenger ferries as well as cruise ships. Nuuk has the largest port in Greenland, which also serves as a base port for Southern Greenland. Royal Arctic Line A/S, a company owned solely by the Greenland Self-Government, runs 13 ports in Greenland.

Most container freight is shipped to Nuuk and from there distributed to other towns and settlements; this is run and administered by the company of Royal Arctic Line A/S. The passenger ferries only run regularly between towns and settlements within Greenland. The passenger ferries are run by a Royal Arctic Line A/S subsidiary, Arctic Umiaq Line A/S ( www.ral.gl ).

Kapisillit is a settlement only accessible by sea, which considerably constrains access in harsh weather conditions. During the winter months from January through May, the minor port is inaccessible because of ice formation. The port is used for freight, passenger and fishing boat handling. There is no helipad in Kapisillit (Nuup Kommunea, 2006).

Transport Commissions Recommendations Naalakkersuisut (Greenland Government) has in 2009 set up a transport commission that was to present solutions to the transport challenges in Greenland. The commission, made up of experts on transport and have a profound knowledge of the Greenlandic conditions, have now presented their recommendations (Ministry of Housing, Infrastructure and Traffic, 2011) from a socio-economic perspective . It is an important part of the commission’s work to see the whole picture and suggest overall and unified solutions for Greenland.

The following are the recommendations that could have influences to the areas within Kommuneqarfik Sermersooq: • Nuuk airport (move the existing international airport in Kangerlussuaq to Nuuk area and to expand to 2200 meters of runway) • Qaqortoq Airport (move the existing airport in Narsarsuaq to Qaqortoq) • Container dock in Nuuk (A new location with a larger capacity) Other recommendations are to establish: • Internal passenger transport in Southern Greenland (smaller boats instead of helicopters) • Airports in Tasiilaq, Ittoqqortoormiit in the east • Longer runway in Ilulissat • Water and road ways in southern Greenland • Etc.

Other initiatives • Streamlining the Mittarfeqarfiit operations (the national airport operations company) • To out phase the helicopters S61 and planes Dash 7 • To open for dispensation for the Royal Arctic Line’s monopoly for transport of good by water especially for mining projects • Etc.

The transport commission’s recommendations will be processed in the parliament and the political system in which decisions of whether to follow or to abort the individual recommendations.

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5.6.4 Energy production

This section is compiled from numbers and information in Greenland Statistics, “Grønlands Energiforbrug 2009, 2010.”

The energy consumption in Greenland is dependent on import of fossil fuels although the production of renewable energy from hydropower plants is increasing. Based on the information of 2009, 88.9% of Greenland’s energy consumption is provided via fossil fuels, vs. 10.1% from hydropower. (Source: Grønlands Statistik 2009 data).The total energy usage in Greenland is 9,013 TJ in 2009, which is a 10.5% decrease from 2008 usage, mainly because of a mild winter.

Nuuk has received hydropower from Buksefjorden since 1993 (the largest hydropower plant in Greenland producing 785 TJ – about 2,830 GWh). The plant had a third turbine installed in 2008. There are currently 5 towns in Greenland receiving hydropower. The total energy production from hydropower is at 916 TJ – about 3,300 GWh in 2009 (10 % of total energy usage).

Diesel is used for production of power and district heating, for heating in households, institutions and businesses, for processing in the industry, fishing and recreational vessels and for transport. As the production in the hydropower plants increased, the usage of diesel decreased in 2009. The consumption of diesel decreased to 6,473 TJ (~236 Million L) in 2009 with 15%.

Diesel consumption

290000

280000

270000

260000

250000 Diesel

Liters 240000

230000

220000

210000 20022003200420052006200720082009 Year

Figure 5-15 Diesel consumption in Greenland 2002-2009 (Greenland Statistics, 2012)

Waste incinerators in Qaqortoq, Nuuk, Maniitsoq, Sisimiut and Ilulissat provide district heating to the respective towns. Electrical heat consumption has increased by 10% according to the production of hydropower in the 5 towns receiving this.

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5.6.5 Water Supply

The water supply is provided by Nukissiorfiit. In Nuuk the water production is at about 1.4 million m 3 per year (2005 figure). The water supply is from three water reservoirs (or lakes) of which the water is treated in 4 water works with chlorine and UV light to disinfect the water (Nukissiorfiit and Nuup Kommunia, 2006).

5.6.6 Waste Management

According to the Waste Order from 17 September 1993 on disposal of Waste 5 the municipalities in Greenland are obliged to provide disposal facilities for waste from households and industries, institutions etc. The municipality is obliged to collect the municipal waste and waste similar to municipal waste from the industry, whereas, the industries are obliged to deliver other kinds of waste than waste similar to municipal waste to the waste collection stations.

There exists one incineration plant in Nuuk suitable for combustible waste. Unfortunately, this plant does not have the capacity to manage all the waste generated in Nuuk. Additionally, there is a transfer facility for hazardous waste in Nuuk (only 6 of the major town in Greenland have a transfer station for hazardous waste). Finally, there exist collection facilities for recyclable waste only in Nuuk.

The Danish company, Mokana I/S, and the Greenlandic municipalities have entered into an association and cooperation agreement regarding management of hazardous waste from Greenland. The agreement ensures that Mokana I/S will manage and dispose of hazardous waste from Greenland. The agreement equates the Greenland municipalities with Danish stakeholders and commits the Greenland municipalities to use Mokana I/S when hazardous waste is disposed of. A guideline on how to collect and manage hazardous waste has been developed in cooperation with Mokana I/S.

5.6.7 Other projects in the area

There are several small industrial projects doing mineral exploration and further investigations in the north-east area of Nuuk. As of today, there is no project in permitting process, only projects in the very early pre-feasibility and prospecting stage.

Alcoa is interested in establishing an aluminium smelter in the Maniitsoq area (further north of Nuuk). Alcoa and Greenland Self-Government have joined forces in investigating and studying the potential environmental and socio-economic impacts, if the project moves ahead.

The project is still at an early planning stage and is a subject of discussion at the Greenland Self-Government, where decision needs to be made regarding ownership of the project and approval.

NunaMinerals A/S, a Greenlandic mining company, has three exploration license areas in the vicinity. The company has the neighbouring ISUA concession area where gold bearing rock has been found. The area is in proximity to the road, but is still at a prospecting stage.

5 Hjemmestyres bekendtgørelse nr. 27 af 17. september 1993 om bortskaffelse af affald

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5.6.8 Development plans in the municipality and project area

Kommuneqarfik Sermersooq has depicted the area on the main land south-west of the port area for recreational hut area. The area is away from the projected mining activities as seen in the map below.

Figure 5-16 Map from NunaGis showing the area engraved for the developmental plan for the recreational huts in the Godthåbs fjord (the map to the right shows the enlarged area framed by red).

Regional development strategy

In 2010 Naalakkersuisut developed the vision for the strategy of regional development (RUS). The strategic goal for the regional development is “to provide the framework for development of a self-sustaining society where everyone has the opportunities to develop and sustain life by active self-support” (Formandens Departement, 2011). Steering committees are set up with members from Naalakkersuisut (Greenland Government) and KANUKOKA (the Greenland municipality organization) to implement the strategy. The main areas for focus are: • Public school – increased focus on language and IT • An easier transition between public school and the vocational institutions • A collective plan for vocational educations • A spacious business life with room for technical and physical mobility • Establishment of business clusters (raw material extraction, promotion of trade, tourism) • Modernization of the coastal fishing industry • Increased sale of Greenlandic foods • Working on developing a national construction strategy • Development conferences

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Within establishment of business clusters it is mentioned regarding mining sector: • Experience from Impact and Benefit Agreements will be collected • Develop better teamplay between the School of Minerals and Petroleum and the municipality labour departments • School of Minerals and Petroleum must be ensured more stable funding • Possibly law modifications regarding part time unemployed who makes a year’s salary in less than a year

5.7 Public Health

5.7.1 Health status

According to the BMP a section about public health shall be included in the SIA baseline study.

Although the main burden of diseases in Greenland is due to non-communicable diseases, the country is still affected by communicable diseases such as tuberculosis and, sexually transmitted infections (STIs). The occurrence of cancer, cardiovascular disease, diabetes and obesity has risen significantly over the past two decades.

The following table presents selected baseline health indicators, which will be used for the long term monitoring of the socio-economic impact of the project.

Selected Health indicators General Life expectancy at birth (years) Male 66.6 Life expectancy at birth (years) Female 71.6 Infant mortality rate (per 1000 live births) 7.1 (2009 figures) Age-standardised mortality rate (ASMR) all causes per 8.9 (2010 figures) 100,000 Infectious Diseases Incidence of tuberculosis (number of persons) 63 (2009 figures) Chronic Diseases Age-standardised prevalence of type 2 diabetes (%) 9% (2005 – 2010) ASMR ischemic heart disease (per 100,000) 135.5 ASMR cardiovascular diseases e.g. strokes, heart 275 (1999 – 2001) attacks (per 100,000) Age-standardised incidence of all primary cancers (per 350 (1999 – 2001) 100,000) Injuries ASMR unintentional injury (per 100,000) 95,6 ASMR suicide (per 100,000) 100 Male 100.4 (2009 figures) Female 26.5 (2009 figures) Health Determinants Age-standardised prevalence of overweight and obesity 21.85 (2010) (%) Prevalence of current smoking (%) 70 Table 5-20 Selected Health Indicators (Adapted from Health Transitions in Arctic Populations (2008), Young & Bjerregaard.) NB. All figures from 2008, unless otherwise stated)

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The number of teenage pregnancies and motherhood is high in Greenland compared to other countries. To prevent teenage pregnancies a doll project was commenced in 2010 in which over 1,100 students all over Greenland have participated. The students care for the doll for 1-3 days, a doll that simulates a baby and needs to be taken care of.

The occurrence of sexually transmitted diseases (STDs) is high among teenagers and young people. There were 1,105 reported incidences of gonorrhoea and 2,864 of Chlamydia in 2009, which amounts to 1.9% and 5.05% of the population respectively (Grønland Statistik 2011). HIV/AIDS has a surprisingly low incidence.

Health authorities can explain this unusual pattern and consider HIV/AIDS a ticking bomb, as the virus has been identified in individuals older than 40 years that do not seem to be related sexually with the teenagers and young. Once the virus reaches this segment of the population, the risk of a quick spreading will be high, as the young people in Greenland are sexually very active and apparently reluctant to the use of condoms. Paarisa (the Greenland Health Prevention Agency) works with the development and implementation of campaigns for the prevention of STDs and early/unwanted pregnancies. The occurrence of abortions is also very high in all age groups, especially in the age group 20 – 24, where the figure for legal abortions was 31.5% in 2008 (Grønland Statistik 2011). There are as many births as there are abortions in Greenland (Paarisa, Personal communication, 2010).

Violence and sexual assault are frequently occurring problems in Greenland that affect public health in a negative manner. The survey shows that 59% of the population has been, at a point in their adult life, subjected to various forms of violence or threats – the young people more than the older generation. Sexual assault and violence are clear health and societal issues and both are part of the problems associated with alcohol abuse. The Paarisa programme puts clear emphasis on these interconnected aspects in the strategy for 2007-2012.

According to the Ministry of Health there is currently no accident statistics from mining and exploration activities in Greenland put together. The data can be obtained from medical records, but the data is not electronically available as of yet (Ministry of Health, Personal Communication, 2010).

5.7.2 Health services

All medical treatment in Greenland is free including medicine and dental work. These services are available for both Greenlandic and non-Greenlandic citizens residing in Greenland. This is financed by taxes ( www.nanoq.gl ).

• The Queen Ingrid Hospital (DIH) is situated in Nuuk and works as the main specialist hospital centre in Greenland with modern equipment. The hospital houses 191 beds, in specialties and treatment wards. It also houses a patient hotel ( www.peqqik.gl ). • Other hospitals include 16 hospitals spread around in Greenland, one in each town (www.peqqik.gl). There are 60 settlement consultations and health stations, mostly in settlements of more than 50 inhabitants and staffed with one nurse or health care worker (www.peqqik.gl).

• There are 17 dental care clinics, one in each town. There are no dental care clinics in settlements ( www.peqqik.gl ).

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• Health Research , The Greenland Institute for Circumpolar Health Research (GIHR) was established in 2008. The purpose is to “enhance cooperation between researchers from other countries and health professionals in Greenland and to further research cooperation in Greenland”. The institute is located in Nuuk ( www.pi.gl ).

• Alcohol Treatment Centre , Qaqiffik . The centre is financed by the Greenland Self- Government and has been active since 1995 ( www.qaqiffik.gl ).

• Peqqissaanermik Ilinniarfik , Centre for Health Education. The centre manages nurse, health-care worker and health porter educations in Nuuk ( www.pi.gl ).

• Det grønlandske patienthjem (Accommodation in Denmark for patients from Greenland). The accommodation is to house patients and next of kin from Greenland before and after admission to hospital. In 2012 Det grønlandske patienthjem moved to a new building at Østerbro in Copenhagen (www.peqqik.gl).

• In the summer of 2010 telemedicine equipment ( Pipaluk ) were set up in all 16 health districts. All together 77 so-called ‘carts’ have been set up so that all towns and settlements with more than 50 inhabitants has a cart (www.peqqik.gl).

Public Health Programs A survey of the Greenlandic population for 2005-2007 was published in 2008 by the Institute of Public Health in cooperation with the University of Southern Denmark as a follow-up on the 1993 survey. This survey was then used for designing a preventive health program, called Inuuneritta , with the following focal areas: • Alcohol and violence • Nutrition and physical activity • Smoking • Sex life

In addition, the program will add on to the previous focal areas (Inuuneritta, 2007-2012) (Statens Institut for Folkesundhed, 2008; Inuuneritta, 2006): • prevention of suicide • early preventive efforts for children and youth • dental health, and • senior citizens

5.7.2.1 Health services for expatriates

Expatriates working with mining and exploration activities have to pay taxes to Greenland after 2 weeks’ stay in Greenland. The right of free health service in Greenland depends on whether the expatriate’s home country has signed an agreement with Greenland. In Greenland, the international employers are required to have a health and accident insurance for the employees.

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Health services will be available to all involved in accidents, whether Greenlandic or expatriates, and the charge for the services will be clarified afterwards. The Greenlandic Health Service is responsible for transport of the local people from all year inhabited areas for medical treatment. The Greenlandic police are responsible for transport from all other on land areas and in shelters waters in connection with medical treatment. The Danish defence is responsible for transport from open waters (Ministry of Health, Personal communication, 2010).

5.7.3 Social health and vulnerable groups

During the consultation with the various informants for the baseline study, the authorities and key informants identified different groups in the society as vulnerable groups, for example: • Children, particularly in families with addiction problems • Young families with small children • Unemployed, uneducated young males • Low-income workers (low income SIK members)

The list is not extensive and do not reflect any priority. The following sections briefly describe some of the key social health problems identified by authorities and key informants that are related to the most vulnerable groups in the Greenlandic society.

5.7.3.1 Suicide

In comparison to other Arctic countries, the number of those who ‘seriously thought of committing suicide’ in Greenland is considerably higher than in other Arctic regions. In Nuuk 18% of the interviewed seriously thought of committing suicide while only 6% thought of committing the same act in Eastern Chukotka (SLiCA, 2007).

The rapid pace of modernization of the Greenlandic society, through the emergence of new economic, social and political structures, has been considered as an important factor in the increasing number of suicide and suicide attempts (Bjerregaard, P and Young, K.T., 2008), (Leineweber 2000).

5.7.3.2 Young mothers and abortion

While most fathers are between 24-30 years old when their first child is born, most women, at the time of giving birth, are between 20 and 24 years old. In the same age group a great number of women have not reported the identity of the father to the authorities (Documentation Centre of Children and Youth, 2007-08).

In the last couple of years the number of abortions has surpassed the number of births. Previous studies have shown that it is not possible to pinpoint a specific risk group (more likely to have abortions). Women of all ages have abortions and come from various social classes. Moreover, it has also been shown in previous studies that women are looking to prove their worth as a woman by becoming pregnant and that it awards status to become a mother (Bjerregaard, P and Young, K.T., 2008).

5.7.3.3 Homelessness

The following sections are from the Homeless Survey conducted by the Ministry of Family and Health in 2008 (Departementet for Familie og Sundhed, 2008).

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In 2008, 514 people were registered as homeless or 0.9 % of the total population (this number would however be higher if information from Nuuk had been included). Particularly persons in the 41-60 age group are homeless in Nuuk.

Adults without Men Women Married or co - Homeless with own dwelling habiting young children 22 18 4 1 2 Table 5-21 Number of homeless in Nuuk in 2008 (Ministry of Family and Health 2008)

Out of 22 homeless there were 16 receiving welfare and 8 were job seekers. 15 of the 22 had an alcohol or drug abuse issue.

The homeless in Greenland can be divided into two equally large groups. A temporarily vulnerable group consisting of students, newly divorced or separated people, young people who want to move away from home and people who are not entitled to staff housing. The second group has a long-term character and encompasses persons struggling with other social problems including long-term jobless, substance abusers, criminals, persons with mental disorders as well as disability pensioners. The temporarily homeless people usually solve their problems on their own but can become vulnerable again and in the long run become part of the group of long-term homeless people. The long-term homeless cannot help themselves and need external assistance. The survey shows that 13% of the homeless have children in their custody.

5.7.3.4 Crime and Violence

The judicial system in Greenland (police, prosecution, courts and the prison service) is not transferred to the Self-government. The legislation still belongs to the Ministry of Justice in Denmark, while the law of procedure and the forms of servings are being adapted gradually to the community, and the Greenland probation will also gradually have more freedom.

The Greenlandic legal system is very different from the Danish. The administration of justice in Greenland is largely based on the laity, where judges and lawyers are ordinary citizens, while the prosecution is handled by the local police. The criminal law does not talk about punishment and not penalties. Instead, the court chooses the right option among a number of measures on which is best suited to get the criminals to refrain from re-offending.

Today, the crime in Greenland is characterized by a relatively high gross of acts of violence, including sexual offenses, homicide and attempted homicide, compared to other countries. In recent years there have also been drug offenses, mostly marijuana, and various forms of financial crime. The proportion of Greenlanders sentenced to detention, is three times as high as the proportion of prison convicted in the other Nordic countries. The number of persons been placed in the so-called ‘anstalter’ in Greenland in relation to its population is among the world's largest.

The Police of Greenland publishes annual statistics. Latest annual statistics are for 2011 from where the figures below are shown. The number of offences for breach of the criminal law has decreased by 9.4% from 5,348 notifications in 2010 to 4,844 notifications in 2011. The number of offences for breach of the specific legislation has decreased by 18.9% from 1,917 to 1,554.

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Despite the number of reported cases of violence has decreased every year since 2008 and has not been lower the past 11 years, the number of domestic violence cases per. capita in Greenland is still very high, as much as 5 times higher than in Denmark. The number of sexual offenses, apart from an increase in 2010, decreased since 2006. The number per. capita is still high, equivalent to 11 times higher than in Denmark.

The greatest crime type, property crimes (including theft), represents just over 2/3 of all violations of the criminal law, after an increasing trend over the past two years has now decreased again.

This section is based on www.politi.gl and www.kriminalforsorgen.gl of 4th January 2013.

5.8 Cultural and Natural Values

5.8.1 Values and traditions of importance in the Greenlandic society

Hunting and fishing have significant cultural importance for the Greenlanders, although traditional communities no longer rely on hunting and fishing for their survival. However, the activities are an important aspect of the Greenlandic traditional way of life, and of the Greenlanders’ identity. Even though the subsistence hunting is decreasing, the recreating hunting is mainly for own consumption.

According to the Survey of Living Conditions in the Arctic (Poppel et al, 2007), the preferred lifestyle among people in the Arctic in general, including Greenland, is a combination of traditional activities such as hunting and fishing, and a wage job. Nine out of 10 Inuit consider traditional activities important for their identity and wellbeing.

Traditional foods play a big part in the daily/weekly Greenlandic diet which mainly consists of Western foods. In Southern Greenland a 38% proportion of meat and fish consumed by a household is traditional Greenlandic food (Poppel et al, 2007).

In the northern part of Greenland, hunters hunt using dogsleds in the winter and boats in the summer. The snow mobile is gaining popularity as personal transportation although some hunters prefer the dogsled as it is quieter. In Southern Greenland (from Kangerlussuaq) the sled dogs are not allowed by law which makes snow mobiles and boats the main personal transporting methods for hunting and fishing (it is not allowed to bring snow mobiles directly to the hunting grounds for transporting the catch, but it is allowed to use the snow mobiles for personal transportation. Moreover, 96 % of respondents in Southern Greenland declare hunting and fishing to be either important or very important (Poppel et al, 2007).

Most Greenlandic families spend their summers travelling by boat, sleeping in their boats or in tents, living by the natural resources, sometimes in groups of families or as individual families.

Greenlanders have very close-knit ties with their immediate and extended family which has been necessary to uphold a small community living off the seas in an often hostile climate. It is natural to help each other out when times are tough and to share, to a certain extent, surplus food, money or favours. It is common to gather people, acquaintances, friends and family for dinner, indoor or out, eating the traditional Greenlandic food, such as seal, whale, fish, birds etc. (Poppel et al, 2007).

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Furthermore, it is commonly practiced to stop by friends or family without previous arrangements, and guests are always offered a bite to eat, coffee, drink, or cake.

The Greenlandic family structure can be very complex as there is an immediate family (which is usually considered to be grandparents, parents and children) and an extended family (uncles and aunts, nieces and nephews, cousins, second aunts and uncles and second cousins). Yet sometimes extended family members can be included in the immediate family mostly through formal or informal adoption. This can be in order to give the child better care because the biological parents’ ability to cope with child care is not optimal (Christensen, et al., 2008), teenage pregnancy, fertility problems, or if the biological mother temporarily moves to a different town for educational purposes.

Greenlandic women have adapted to the Western European way of living much more easily than the Greenlandic men, mostly because men have traditionally hunted and had a close relationship to nature and outdoor life whereas women have been used to housework. A higher number of women have started an education, women have a lower rate of unemployment and lower suicide rate. This is also supported by the preferred lifestyle in Greenland where the rate of women working on a wage job is 66% (compared to male of 49%) as opposed to harvesting, herding or processing own food (Poppel, et al, 2007).

5.8.2 Religion

The current prevalent religious belief and practise is Evangelical Lutheran or Protestantism. Administration of church is under the Greenland Government and is an independent Danish diocese. The bishop is appointed by Denmark. Every town has a minister and most settlements have an appointed catechist. The older Greenlandic generation is religious and is often going to church. The religious traditions are although important to the younger generation in practising the different rites such as weddings, baptisms, confirmations, funerals, and religious holidays. Jehovah’s Witnesses and Roman Catholicism are also represented in a much smaller degree along with other Christian beliefs.

5.8.3 Relations of the Greenlandic people to the local, regional, national and international communities

Greenlanders are very mobile people, and the immediate and extended family as well as friends can stretch over several regions, towns, and settlements. It is common to travel to other towns and settlements, especially over the summer, to participate in important events with family, especially confirmations, christenings and weddings. People also move to other parts of Greenland for better job opportunities and education, to a higher extent than for other parts of the Nordic countries and the Arctic (Nordic Council, 2010). Even though the Greenlandic language has many different dialects it is still possible to communicate and to understand each other. As the culture and way of living is very similar across towns and regions as well as settings, from town to town and region to region in different settings it is easy to fit in because of the openness and hospitality of the Greenlanders.

The connectedness within a region can be described as a strong sense of regional identity because of similarities in dialect, culture and interaction between people within the same region. The national connectedness is apparent in the cultural identity through the traditional Greenlandic stories, handcrafting, common language etc.

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It is not uncommon for Greenlanders to feel connected to Denmark, although being aware of the differences between the two countries. It is especially obvious when the Danish national soccer or handball teams participate in championships, or when Danish royalties are visiting - then the Greenlanders feel that they are also part of the Danish community. With quite a number of Danes residing in Greenland and because many Greenlanders have spent time or temporarily settled down in Denmark, Greenlanders have inside knowledge of Denmark and the Danish culture.

Besides the emotional aspects, there is a high level of connectedness through trade with Denmark. Greenland imports 60 % of total imports of imported goods from Denmark, 26 % is imported from Sweden. Greenland exports 85 % of all goods to Denmark, 6 % is exported to Canada. The main export goods are fish and shellfish (Greenland Statistics, 2009).

Greenlanders feel connected to other indigenous people in the Arctic, especially Inuit, because of the language, cultural and traditional background seen as common denominators. There has been quite an effort to even further strengthen the bond, for example by being part of the Inuit Circumpolar Conference (ICC), Nordic Council, and Arctic Winter Games etc. and linking with other indigenous peoples around the world. There has especially been an exchange of knowledge and experience between Canadian Natives and Greenlanders over the last 20 years.

Greenland has a high level of internet and IT usage, and not surprisingly, has a rich network and activity through worldwide internet networks, such as Facebook, Twitter and Skype. Blogs and comments are also well used.

5.8.4 Existing use of natural resources in Greenland

The biological resources in Greenland are exploited to a very large degree, traditionally by Greenlanders. The total number of species consumed in all of Greenland in relation to fishery and hunting is small compared to the biodiversity. The exploited species includes fish, birds, marine and terrestrial mammals, invertebrates and plants (ISUA Local Study, 2009).

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Figure 5-17 Map of the area showing with hatching the delimitation of the area under study in the report mentioned.

A hunting license must be obtained at the Ministry for Fishing, Hunting and Agriculture, more precisely, at the Department of Fishing and Hunting. The license application is submitted to the respective municipality office. Some mammals such as belugas and polar bears have more stringent quotas and some conditions that the hunter has to meet before a license can be issued ( www.nanoq.gl ).

Greenland is partly economically dependent on the fishing resources. There are rules and regulations for fishing in sheltered waters and for the open seas. A license for fishing some of the species, such as shrimp and salmon, in the different waters is required and is issued by the Department of Fishing under the Ministry of Fishing and Hunting. Most fishing in the open waters is done by large and industrial fishing ships (about 50 boats in Greenland, typically over 80 gross tonnage), and the fishing in sheltered waters is done by smaller vessels (about 300 boats in Greenland, typically under 80 gross tonnage). Other vessels used for fishing and hunting are the smaller boats (in Greenland there is a total of about 2,000 dinghies and boats under 5 gross tonnage). The fishing from the small vessels is done mostly by few full-time combined hunters and fishermen and a large group of part-time hunters that supply the household economy by the catch. Only about 15% of the total catch in Greenland is done by the small vessels ( www.nanoq.gl ).

Smaller dinghies and fishing boats have to have a log book that should be filled out with area of fishing and activities and amount of fish and mammals caught. The log book is required as it is used for keeping track of the biological resources so that the exploitation of the resources is suitable for the biological population. The log books are kept confidentially at the Greenland Resource Institute and Greenland Statistics (www.nanoq.gl).

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5.8.5 Local use of natural resources in the project area

A local use analysis was carried out in November 2009 by Orbicon for London Mining Plc. and describes the use of natural resources in an area in Kommuneqarfik Sermersooq. The term “local use “covers a broad range of human activities related to fishery, hunting, tourism, and recreational use. The main usages of natural resources in Kommuneqarfik Sermersooq are hunting and fishing. Furthermore, an interview based research on the Local use of the area surrounding the ISUA ore mine project was performed by HS Analyse, a Greenlandic company specialising on collection of social statistics, on behalf of Grontmij to map and quantify the use of natural resources by professional hunters and fishermen, free-time users and tourist operators.

Fish and mammals caught can be found for sale at “brættet” (in Nuuk a new facility has been established in 2011), which is like a fish shop. In the past-“brættet” was a common market for catch of the day for the local combined fishermen and hunters, which is still the case in other places in Greenland.

Figure 5-18 Fresh fish and meat sold at the old “brættet” in Nuuk (November 2010)

On land, caribou is the species most often hunted in the project area by locals, both by fulltime and part-time hunters. The project area is caribou inhabited and locals hunt by boat and foot (as using motor driven onland transport is illegal in connection with hunting) in August through September. The area is popular, especially by part-time and first-time hunters as the likelihood of encountering caribou is very high.

According to surveys done by HS Analyse in 2011 for visits by locals in 2010 there are 31 professional hunters, 125 recreational hunters and 11 individuals from Kapisillit that visited the ISUA project area (corresponding to 63, 60 and 46 % respondents). Most of these visits were done once or twice in 2010.

2009 2010 percent number percent number

Commercial hunters 71 33 63 31 Recreational sailors 62 129 60 125 Kapisillit 46 11 46 11

Table 5-22 Ashore in the area – 2009 & 2010. Percentage which respond in the affirmative

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The visits are partly recreational, meaning sailing, hunting caribou and ptarmigan, arctic char fishing, or picking berries in the area during vacations. 83 % of the recreational visits were for the purpose of hunting caribou. The 84 professional hunters caught 2,049 caribou, catching in average 23 caribou in 2010. The total catch of caribou in 2010 were 2,962 caribou (in 2009 there were 3,974 caribou caught) (HS Analyse, 2011). These figures about the number of caribous hunted were reported by hunters interviewed as part of an effort to collect local knowledge information; as such, these figures shall not be considered as “official” figures on hunting rates. They are given herein as information from local people.

Caribou Arctic char Ptarmigan Berries Other

2009 Commercial hunters 82 9 9 12 ( 6) Recreational sailors 86 15 19 14 ( 9) Kapisillit 100 0 0 0 ( 0) 2010 Commercial hunters 72 17 0 7 ( 9) Recreational sailors 83 15 16 16 (13) Kapisillit 100 0 0 0 ( 0)

Table 5-23 Type of activity in the area: 2009 and 2010 percentage that answer yes (should not add up to 100)

The fishing plant in Nuuk purchases mostly Atlantic cod (all year round), Greenland cod (January to April and fall) and Lumpsucker (in March-May), fished in the open and sheltered areas near Nuuk. To a smaller extent, Atlantic salmon (August through October), Spotted wolfish, Arctic char (June through August) and Halibut are caught in the fjord system (ISUA Local Study, 2009 and www.nanoq.gl ).

Blue mussels are gathered in the fjords and sold at “brættet” or used for own consumption. Scallops are fished less frequently in the fjords. This catch is also sold at “brættet”

Important hunted bird species are Common eider (October-February), Brünnich’s Guillemot (October-February), and Ptarmigans (September-April). Eggs of Black-Backed Gull and Glaucous Gull are gathered in the early summer period in the Nuuk area (ISUA Local Study, 2009).

Most important hunted seal species are Harp seal (May-October), Hooded seal (April- May) and Ringed seal (ISUA Local Study, 2009). Seals are hunted by full-time and part- time hunters and the catch is mostly sold at “brættet” or used for own consumption. The sealskins are sold to Great Greenland’s skin centre in Nuuk.

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Professional hunters (51 % of the surveyed) reported having caught 3,489 seals in 2010 in the Akia/nordlandet area (in 2009 there were 4,416 seals caught) and of these between 70 and 100 % were sold at “brættet”. According to the hunters interviewed, 815 seals were caught in the same area by recreational hunters (26 % of the surveyed) in 2010 (HS Analyse, 2006). As mentioned previously, these figures were obtained as part of an effort to collect local knowledge information and these figures shall not be considered as official statistics.

5.8.6 Sites of historical and cultural importance in the project area

The following section is based on a meeting with representatives from the National Museum of Greenland as well as from a review of the archaeology survey reports prepared on behalf of London Mining by the National Museum of Greenland.

The archeological survey in the upper portion of the access road from River Crossing No. 1 to mine site was completed in the summer of 2012. The key conclusions of this latest survey by the National Museum of Greenland are the following:

The archeological surveys that have been conducted over 4 seasons (2008,2009,2011,2012) by the National Museum of Greenland have revealed anthropogenic structures that are protected under Greenlandic laws.
However, the National Museum of Greenland concludes that the construction of the Isua project can be accomplished without damaging the bulk of the recorded archeological structures.

Furthermore, it is London Mining plan to maintain a continuous follow-up with the National Museum of Greenland during the construction of the Isua project.

The Kangersummut timaa is a caribou inhabited area and has been in at least a couple of hundred years. The area also contains soapstone, which was especially used by the Thule culture for production of pots and lamps. The Nuuk area was an important trading centre for soapstone at the beginning of the 1300’s. The Norse have also used soapstone and there may have been interaction between the Norse and the Thule culture for trading purposes.

The Saqqaq culture was also in the area in the late 1500 B.C. where the main resource was caribou. There are a number of Norse findings (a church ruin and cemetery) at Anavik, Ujarassuit Paavat. This area is very critical and worthy of preservation as it is a tourist attraction. This area, according to the Prefeasibility Study 2010, will not be affected by project activities.

The area at Kussangasorsuaq is a historic area connected to stories and legends, like the legend of Aron from Kangeq and the meetings between Norse and Inuit. In the caribou inhabited area there are findings of 7 settlements around the lake. This area was a caribou hunting area until the 1970’s.

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Figure 5-19 NunaGIS map showing the project activities and the areas of cultural importance

Besides the archaeological and historical perspectives, Mount ISUA itself, or Isukasia as it is called in Greenland, is considered a geological singularity, probably the most ancient mountain and iron deposit in the world, estimated to be 3,760 millions of years old (Appel et.al. ,2001;Moorbath et.al, 1973). Several scientific expeditions have studied the area, mainly to determine with precision the age of the formation and to investigate evidence of life on Earth 3,800 years ago (Mojzsis et. al. 1996).

An application for an official protection zone in the site around Isukasia where evidence of life was found is in the process at the Greenland Self-Government. This particular site of scientific importance is not located in an area that is likely to have any activities from the ISUA iron project (Department of Nature and Environment, Personal communication, 2010). Local environmental organizations, such as Avataq are concerned about the impact of the mining activities in this site.

5.9 Qeqqata Kommunia

5.9.1 Introduction

This chapter has been incorporated to the baseline study as a request of BMP, due to the location of The Greenland School of Minerals and Petroleum in the municipality. The scope of the baseline information on Qeqqata Kommunia and how is incorporated into the identification and assessment of impacts was also suggested by BMP during the review of the Terms of Reference (ToRs) proposed for the ISUA Project (Annex 1).

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5.9.2 Demographic and socioeconomic profile

Qeqqata Kommunia is located in the middle of Greenland and Sisimiut is located just north of the northern polar circle where the midnight sun lights up the night and the polar winter days are dark. Sisimiut and Maniitsoq are the two major towns in Qeqqata Kommunia and it is where the international airport Kangerlussuaq is located.

Figure 5-20 Map showing the Qeqqata Kommunia location, towns, and settlements

Location Male born in Male born Female born in Female born Greenland outside Greenland outside Greenland Greenland Qeqqata 4614 546 4287 237 Sisimiut 2586 316 2449 147 Kangerlussuaq 208 101 201 34 Maniitsoq 1326 120 1249 52 Table 5-24 Population demographics of Qeqqata Kommunia in January 2011 (Greenland Statistics, 2011).

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90+

80-85 Female 70-74 Male

60-64 50-54

40-44 30-34 20-24

10-14 0-4

-600 -400 -200 0 200 400 600

Figure 5-21 Demographic profile of Qeqqata Kommunia in terms of age group and gender in January 2011 (Greenland Statistics, 2011).

90+

80-85 Female 70-74 Male

60-64

50-54

40-44

30-34

20-24

10-14

0-4

-400 -300 -200 -100 0 100 200 300

Figure 5-22 Demographic profile of Sisimiut in terms of age group and gender in January 2011 (Greenland Statistics, 2011).

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90+ 80-85 Female 70-74 Male 60-64

50-54 40-44

30-34 20-24

10-14 0-4

-40 -30 -20 -10 0 10 20 30 40

Figure 5-23 Demographic profile of Kangerlussuaq in terms of age group and gender in January 2011 (Greenland Statistics, 2011).

90+

80-85 Female Male 70-74

60-64

50-54

40-44

30-34

20-24

10-14

0-4

-200 -150 -100 -50 0 50 100 150

Figure 5-24 Demographic profile of Maniitsoq distributed by age group and gender in January 2011 (Greenland Statistics, 2011)

Greenland (average, all municipalities) 194.000 DKK Qeqqata Kommunia 194.000 DKK Sisimiut 205.000 DKK Kangerlussuaq 286.000 DKK Maniistoq 176.000 DKK Table 5-25 Average taxable income in 2008 to the thousands (Greenland Statistics, 2011)

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The potential workforce is in January 2010:

Location Total Male Female Greenland total 31, 571 16.970 14 ,60 1 Sisimiut 3,561 1,956 1,605 Maniitsoq 1, 792 996 796 Table 5-26 Potential workforce in Qeqqata Kommunia (Greenland Statistics, 2011).

The average unemployment per month in 2010: Location Total Male Female Total Percent Percent percent Male Female Greenland total 1,394 836 559 4.4 4.9 3.8 Sisimiut 113 61 51 3.2 3.1 3.2 Maniitsoq 144 93 51 8.0 9.4 6.4 Table 5-27 Average unemployment per month in Qeqqata Kommunia in 2010 (Greenland Statistics, 2011).

The capacity for overnight stays in Qeqqata Kommunia is 117,707 with an occupancy rate of 35.0 %.

5.9.3 School of Minerals and Petroleum in Sisimiut

The School of Minerals and Petroleum is part of an organization that also includes the Building and Construction School in Sisimiut and the Steel and Mechanics School in Nuuk. The school has the purpose of connecting all educations as an educational facility and knowledge centre for all mineral and petroleum activities in Greenland. The school has a common core program for all miners’ students which involve first aid, IT communications, geology, firefighting, volatile compounds, safety features, and more technical surface and underground mining specialization.

There are today 155 people (4 female) that have gone through the common core program and there are currently 18 enrolled. Of the 155, 30 have also completed the diamond core drilling program, and 58 have completed the surface mining machine operator program (School of Minerals and Petroleum, 2012). Greenlanders over 16 years of age may apply for the program which is sponsored solely by the Greenland Government. The school strives to send out students at 18 years of age for mining apprenticeship. At that point they will have a long range of certificates for driving and handling different machinery such as dumpers, underground machines, trucks, etc.

The program is built up by part school room and practical instruction. International teachers and instructors are used for those more specialized mining related courses and some parts of the educations are placed abroad. In 2012 the common core will continue with machine operation, and an upgrade for machine operation, blasting manager, core drilling and apprenticeships according to the Norwegian model. For example, it is planned for 6 specially picked out students (of these are 4 female) to get an upgrade of the dumper truck certificate to a 350 ton dump truck in Kirkenæs in Norway at an iron mine specifically targeted for the ISUA and TANBREEZ projects. (Personal communication Hans Hinrichsen, 2011)

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5.9.4 ARTEK (Arctic Centre for Technology)

ARTEK is a collaboration between the Technical University of Denmark (DTU) and the Building and Construction School. The education gives general engineering skills within construction, building, environment, planning and geotechnics as well as taking into account the special natural and cultural environment of the Arctic. The education requires a high school diploma and can be applied to by both Danish and Greenlandic students for the 4 year training. The education takes place partly in Denmark and in Sisimiut.

5.9.5 Kangerlussuaq airport

Kangerlussuaq airport is the arrival and departure of Air Greenland Airbus that provides regular flights between Greenland and Copenhagen. Once passengers from Copenhagen deplane in Kangerlussuaq, they have connecting flights on smaller planes (Dash 7 or 8 to Nuuk (capital) or other towns in Greenland). The Airbus flight between Kangerlussuaq and Copenhagen is 4 hours; the connecting flight from Kangerlussuaq to Nuuk is 50 minutes.

Kangerlussuaq is a part of the municipality of Qeqqatta Kommunia. Kangerlussuaq was initially established as an air force base by the American Government, but functioned also as a civilian airport. In 1992 it was turned over to Greenland as a civilian airport. The airport runway is 2,810 m long and 60 m wide and is currently the largest airport in Greenland. The airport has a run through of 126,270 passengers in 2009 from 6,891 departing flights.

Many of the American air force base facilities have been kept and are being reused such as the swimming pool, barracks that have been turned into hotel or apartments, bowling alley, hangars etc.

The Kangerlussuaq population is mostly employed with the airport services and municipal services.

5.9.6 Maniitsoq

Maniitsoq is part of Qeqqata Kommunia and is located in between Nuuk and Kangerlussuaq. The town is active with fishing crabs and shrimps, hunting, hand crafts etc. The Maniitsoq area is a very compact, rocky and hilly town and is set close to the open sea at the mouth of South Isortoq fjord. There is a rich marine life of whales, seals, fish and other sea animals.

Maniitsoq has a heliskiing area on the inland ice where tourists can enjoy skiing on the ice cap.

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6 SOCIAL IMPACT ASSESSMENT

This chapter describes the assessment of potential benefits and opportunities as well as social and socio-economic impacts and risks, for the local community, related to the ISUA iron ore mining project. The assessment includes both the construction and operation phases; the closure phase is also addressed in Chapters 7 and 8 on Draft Impact and Benefit Plan and the draft Monitoring Plan and Draft Evaluation Plan. Key categories which are expected to be affected by the mining project are:

• Economic environment (taxes and revenues, direct and indirect employment, local business environment, traditional livelihoods) • Education and training • Public services and development plans • Social aspects (demographic changes, potential social conflicts, vulnerable groups, cultural fit) • Health (public health system, quality of life, environmental impacts) • Cultural and natural values

Each category is broken down into subsections, in which the potential outcomes (both positive and negative) for the local community that arise as a result of the construction and operation of the mining project are described in detail and analyzed.

A summary of the main impacts and risks from the Project are presented at the end of each section in table format. Mitigation measures are then identified and proposed for impacts likely to occur which are adverse in nature and significant enough to require mitigation, that is, negative impacts which are medium and high-level in nature. The result of the assessment, including both pre and post mitigation stages, is presented at the end of each category using the following color codes indicating whether the impact is positive, neutral, or negative, as well as the extent of the impact, i.e. whether it is low, medium or high.

Positive (benefits & Negative (risks and opportunities) impacts)

Not significant Not significant or Not relevant

Low +L - L Medium +M - M High +H - H

An overview of the assessment, which lists the main impacts both before and after the proposed mitigation measures, can be found at the end of this chapter. A complete list of mitigation measures for all impact categories is described in the proposed Benefit and Impact Plan (chapter 7).

6.1 Economic environment

In this section potential impacts on the following areas have been analyzed:

• Taxes and revenues • Direct project employment

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• Indirect employment • Local businesses and economy o Business opportunities directly created by the project o Other sectors that may be impacted by the project • Potential synergies, conflicts and cultural fit aspects • Development plans such as housing, transport, etc. • Traditional production systems • Salary levels

6.1.1 Taxes and Revenues

The project will contribute to increased public revenues through paid fees and taxes, including dividend and corporation taxes, income tax from the employees and the contractors and corporate/income tax when using local companies. It is estimated that London Mining will start pay dividend tax after one year of operation and corporation tax after about 3½ years of operation after final amortization of investments.

Revenues to Greenland Government will start to appear from the start of construction works as income taxes paid by construction workers including Greenlandic workers and foreign workers. At the same time, subcontractors to the project will pay taxes of their profits. This applies to both foreign and Greenlandic companies.

For example, in 2011 more than DKK 50 million was paid in corporation tax from foreign subcontractors active in the Cairn exploration drillings in 2010.

The following table summarizes the estimated contribution of the sources of taxes to Greenland:

Estimated contributions of the sources Taxes and dues Estimates Estimated Corporate and DKK 28.5 billion (US $4.8 billion) for 15 Dividend Taxes * years of mine life Income taxation of Estimated to be in the order of DKK 3.7 personnel billion (US $641 million, during 15 years (Construction + Operation) of mine life) Table 6-1 Estimated contributions of the sources * Corporate and Dividend Taxes are estimated by BFS Engineer based on the Financial Model presented in the Isua Bankable Feasibility Study (SNC-Lavalin, 2012)

All tax calculations are based on present Greenlandic tax legislation up to the latest amendment on 9 November 2009. Estimated tax revenues have been calculated based on the expected number of workers in connection with the construction and operation of the mine.

For the construction phase the taxes are estimated from the average number of workers and their salaries in the different positions. It is important to note that the minimum salary in the Bankable Feasibility Study satisfies the terms defined in the new Large Scale Project Act (see also section 2.2.1 and 2.3).

The corporation tax is estimated based on the basis of 30% of profits, with the forecasted market prices of iron ore as well as amortization of investments and costs.

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The taxable profit of London Mining, and thereby tax revenues to Greenland, will be affected, among other things, by fluctuations in the sale prices of iron concentrate. If the price decreases, the taxable profit and thereby corporation taxes paid to Greenland will decrease. On the other hand, should the price increases, the tax revenues will increase correspondingly. In this regard, Greenlandic tax revenues will ride together with London Mining either the positive or negative impacts of market fluctuations of iron concentrate prices.

It is to be noted that in the current SIA report, the tax revenue estimates are carried out based on the original project schedule as per the BFS. Should the project be delayed due to reasons such as financing and permitting etc., the starting year of the construction will also delay. However, the total durations for construction and the operation are expected to be the same. This implies that the estimated tax revenues would be the same only with a delay corresponding to the starting time.

Corporate taxation

Corporate tax In general the corporate tax is levied at a flat rate of 31.8% and the rate applies to a resident company as well as a registered branch office of a foreign company. The taxable income is determined on the basis of the profit shown in the statutory annual report, adjusted to comply with the prevailing tax provisions. Corporate tax for companies with a license under the Mineral Act is 30%.

Dividend tax Greenlandic companies are to withhold a dividend tax corresponding to the personal tax in the municipality of registration. For companies with permits under the Mineral Resources Act, the present dividend tax rate is 37%.

Tax losses Companies with exploration or exploitation permits under the Mineral Resources Act are entitled to carry forward tax losses without timing limitations.

Personnel taxation

An amendment to the income tax law in November 2010 introduced a new Gross Income scheme including a tax rate of 35% tax for employees working in the mineral resource industry. The Gross tax income scheme only applies to employees, who have not been liable to pay tax in Greenland for a six-month period preceding their employment. The Gross Income tax is calculated on any income relating to the project except contributions to Greenland and Danish pension funds.

There are tax agreements between Greenland, Denmark, Iceland, Norway and the Faroe Islands. Otherwise, the income tax system is structured according to the Danish model with taxation at source. The income tax rate is 42 % for Kommuneqarfik Sermersooq, and 37% for areas outside municipal classification. Personnel allowance is DKK 58,000. For the local staff the income tax rate used is 42%.

The construction phase as well as the production phase will carry positive impacts on taxes and revenues during the project’s lifetime. Below is a compilation of the figures for employment, salary and income tax generated from the project.

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Personnel income tax during the construction period

A variable number of workers will be employed during the construction period which is planned to last approximately 3 years.

The number of workers and the calculated annual income tax for each of the years can be seen in Table 6-2 below, where the income tax is calculated according to the Gross income tax scheme. The tax calculation is based on a DKK/US$ exchange rate primo January 2012 of 5.85.

Year 2012 2013 2014 2015 Total

Estimated 300 2000 3300 2000 number of construction workers

Annual income 11,1 73,1 120,5 73,1 277,9 tax DKK Million (1.9) (12.5) (20.6) (12.5) (47.5) (US Million $ in parenthesis)

Table 6-2 Estimated Number of workers and generated income tax - construction

The total generated income tax to Greenland from construction workers during the construction period, is calculated to DKK 278 million (US $ 47.5 million)

Personnel income tax during the operation period

The Taxes and Revenues analysis for the operation period is based on the staffing of the mine, as defined in the ISUA Bankable Feasibility Study (SNC-Lavalin, 2012).

Due to the small population of Greenland and due to the absence of local workers experienced in the operation of large scale mining facilities, the Operation Phase will be staffed using a combination of local Greenlandic employees and expatriate personnel including North Americans, Europeans, Chinese and other Asian operators. All expatriates and local employees will be accommodated at permanent camps for the duration of their onsite rotation. Housing at the permanent site accommodations, meals, safety gears and cleaning of clothes are provided free to the workers. Transportation of workers from and back to home during the rotation is also provided at no cost to the mine employees that are subject to rotations.

The following distribution of the labour force has been considered during the first five years of operation:

• 55% of employees from Western countries and Greenland (also see Table 6-3 for more information) • 45% of employees from China and other Asian countries.

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After five years of mine operation, and based on training programs to be implemented as part of the ISUA operation, it is planned to have the following distribution of the labour force:

• 45% of international employees from Western Countries; • 55% of employees from Greenland;

Because the start-up of mine equipment requires highly specialized technicians, engineers and senior operators, there will be in excess of 10 to 15% expatriates during the start-up period (which includes commissioning specialists). An operational readiness program will be implemented to ensure the operating organisation is ready to successfully manage the facility from start-up, and that the workforce is well-trained and capable.

For the first five years of operation, the mine and the process plant will have Chinese and Asian operators and supervisors in various positions, in addition to the experienced western and Greenlandic staff. These experienced operators are difficult to find because most are already occupying positions in other similar mining operations in the world (Canada, Brazil, Africa, Australia, Asia). For this reason, the planning of the first years of operation must realistically include sourcing of experienced personnel from China or other Asian countries as applicable. Based on training which will be started and implemented even before the end of construction for various types of positions, it is planned to progressively replace the Chinese/Asian operators during the first 5 years 6 with local or regional personnel from Greenland, subject to availability of Greenlandic candidates for training and for the positions which will require replacement of Chinese/Asian operators. To achieve this, support will be sought from local government and public employment agencies in order to identify and attract the best candidates.

The key objective is to hire as many local qualified candidates as possible who have successfully completed a minimum educational requirement, and who have a proven ability to learn, and meet other job-specific selection criteria.

In order to progressively replace the Chinese/Asian operators, labourers and supervisors, recruiting of local Greenlandic staff for training is expected to start during the construction period, subject to support and guidance from the Greenland government agencies, thus ensuring sufficient time to achieve the training competencies required.

For the purpose of the Tax and Revenues analysis, the number of local Greenlandic staff is assumed to be on average 20% of the total mine personnel during the first 5 years of operation; in parallel during the first 5 years of operation, training will progressively prepare for local resources to fulfil up to 55% of the positions at the mine.

For the purpose of calculation, the average annual figures have been clustered according to the assumed number of local staff for each year.

In Table 6-3 is a summary of the staffing split into local Greenlandic staff, Chinese/Asian operators and Western labor over an operating period of 15 years and 3 months. The calculations are based on labor estimated data supplied by SNC•LAVALIN (ISUA BFS, SNC-Lavalin, 2012). The estimated income from personal taxes to Greenland over that period are provided by Grontmij for indicative purposes. Please notice that the sum across the tables do not add up. This is because the table shows average annual numbers.

6 Even though the period from year -1 to year 4 is stated as 5 years in this report, the actual length is 4 years and 3 months since year - 1 only includes 3 months of operation.

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Total average annual staff for the mine operation is estimated to 680 in year -1 to year 4, increasing to an annual average of 810 in years 5 to 15. Table 6-3 below provides the annual average staffing levels per category of personnel for the 2 main periods of operation.

Year Year -1 to 4 5 to15 Average annual number of local Greenlandic staff (20%/55%)) 136 445 Average annual number of Western Labor (35 % for the first 5 years; 45 % for years 238 365 6 to 15) Average annual number of Chinese/Asian Operator Labor (45 % for the first 5 years; 306 0 assumed to be replaced progressively during the first 5 years, based on training and based on availability of local candidates) Table 6-3 Summary of expected staffing during operation/yearly average number of employees per period

The total salary for local staff over the operation period of 15 years is estimated to be in the order DKK 4.0 billion (of US $ 706 million), and the tax revenue is estimated to be in the order of DKK 1.6 billion (US $ 273 million). The breakdown is presented in Table 6-4 below.

Year Year Total Year -1 to 4 5 to 15 -1 to 15 Average number of local 136 445 Greenlandic staff Total average yearly wage 115.6 330.1 4128.9 expenditure local Greenlandic (19.6) (56.6) (705.8) staff DKK Millions (Million US$) Total average yearly income tax 44.6 127,5 1594.7 expenditure for local staff (7.6) (21.8) (272.6) In DKK Millions (Million US$) Table 6-4 Estimated Salary and Income tax for local staff – operation phase

Table 6-5 below presents the estimated yearly average salary and income tax for expatriate staff (Western and Chinese/Asian), assuming that all expatriate staff will be taxed in accordance with the Gross Income tax scheme. The tax revenue is calculated to be DKK 1.7 Billion (US $ 290 Million) for the Western staff and DKK 177 Million (US $ 30 Million) for the Chinese/Asian staff.

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Year Year Total Year -1 to 4 5 to 15 -1 to 15 Yearly average number of 306 0 Chinese/Asian staff Total average yearly wage expenditure 118,7 0 504.3 Chinese staff DKK Millions (Million (20.3) (0) (86.2) US$) Total average yearly Income tax 41,5 0 176.7 Chinese/Asian staff DKK Millions (7.1) (0) (30.2) (Million US $) Yearly average number of Western 232 383 expatriate staff Total average yearly wage expenditure 186,0 369,1 4854,3 Western expatriate staff DKK Millions (31,8) (63.1) (829.8) (Million US$) Total average yearly Income tax 65.1 129,3 1,699.0 western expatriate staff DKK Millions (11.1) (22.1) (290.4) (Million US$) Table 6-5 Estimated Salary and income tax for expatriate staff – production.

The total estimated income tax that Greenland would receive from both the local and expatriate staff (including Chinese/Asian operators) over the construction period as well as the 15 years of production, is estimated to be in the range of DKKK 3.7 billion. (US $ 641 Million).

Other aspects of Revenues to Greenland Society

In addition to, and aside from the direct revenues to Greenland from personal taxes, other revenues would be generated to the extent that some of the employees would spend some earnings on consumption in Greenland, this will create new jobs, and hence new revenues. However, more important are the taxes and revenues from goods, services and personal taxes to be generated by indirect employment and indirect business activities that will support the operation of ISUA Mine. These indirect taxes and revenues are further described in Sections 6.1.2.1 and 6.1.2.2 below.

This effect (indirect employment and indirect business activities supporting the construction and operation of the mine as well as the derived jobs) is generally referred to as the multiplier effect and is normally estimated as a percentage of primary income. The size of the multiplier effect depends on how much of the income is used for savings or surplus imports to the society.

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Studies from Canada and Alaska indicate a multiplier employment factor of 1.6 – 1.8 in the mining sector. In Greenland’s case the very large proportion of imports from Denmark and low production sector as well as the project being located far from any communities could have the effect of making the multiplier effect relatively lower. For the project as a whole, the multiplier effect has been estimated at 30% for both the international and local staff. This estimate is based on socio-economic evaluations for the Alcoa project in Greenland and has been discussed with the BMP (Niras, 2007 and Watkinson, P, 2009). However there is no previous experience with project of this size, so the estimation obviously implies some uncertainties.

The total salary (generated tax base) from direct jobs over the entire project period is estimated to be DKK 9.48 Billion (US $1.62 Billion). Applying the multiplier the total tax base generated through direct, indirect and other induced jobs is estimated to be DKK 12.34 Billion ± 20% (US$ 2.11 Billion ±20).

Table 6-6 shows the anticipated impacts on the economic environment with regard to taxes and revenues based on the estimates shown previously.

Anticipated overall impacts Impact category - Construction Before Mitigation After Mitigation Economic environment No mitigation L+ Direct taxes and revenues required No mitigation M+ Indirect taxes and revenues required Anticipated overall impacts Impact category – operation Before Mitigation After Mitigation Economic environment No mitigation H+ Direct taxes and revenues required Table 6-6 Anticipated impacts on economic environment (direct taxes and revenues).

6.1.2 Employment

The project will result in significant employment during both construction and operation phases. The following table summarizes the expected employment, disaggregated to local and international staff.

The following table summarizes the expected employment, disaggregated to local and international staff.

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Expected direct jobs Expected indirect jobs

Total Local (max) Construction Phase 300 7 -10% of 210-430 1 2012 2000 total 2013 3300 2014 2000 2015 Operations Phase 680-810 20%-55% 180-240 2 15 years Table 6-7 Estimated employments during the lifetime of the project

1 Calculated with a factor of 1.3 of local jobs plus 0.2 more from year 2013 to cover international workforce on transit or short term in Nuuk. 2 Does not include potential expansion on the construction sector in Nuuk.

6.1.2.1 Employment during Construction

Direct employment The ISUA project will probably be the 1 st large scale mining project being developed in Greenland. There is no equivalent large scale industrial facility ever constructed and operated in Greenland.

The construction of the ISUA mine will require in the range of 1000 to 3000 skilled and experienced workers in all construction disciplines such as civil work, mechanical installation, structural steel erection, electrical installation, concrete work, automation and control, etc. A work force of such a size, with the necessary qualifications, skills, experience cannot be found in Greenland. This fact is supported by the recent decision of the Greenland Parliament to adopt (December 2012; also see section 2.3) the new Large Scale Project Act in order to provide a framework to the use of international workforce for the construction of large scale mining projects in Greenland.

For this reason, the construction of the ISUA project is based on the following approach:

a) Small construction packages and services packages can be offered to local Greenlandic contractors/suppliers based on competitive bids. Examples of construction packages and services contracts to be offered to local Greenlandic enterprises are presented in Figure 6-1. At this point of the planning of the construction of the ISUA Project, it is estimated that construction packages and services packages that can be feasible by local Greenlandic enterprises would account in the range of 7% to 10 % of the total labour during the Construction Phase, assuming this level of construction labour can be found and mobilized in Greenland.

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b) Large construction work packages and mine equipment packages such as the Primary Crusher, Ore Processing Plant, power plants, slurry pipeline, port facility, ship loader, conveyors, slurry dewatering facility will be offered to large international specialized contractors based on international competitive bids. The international contractors, including large firms in Denmark, to be selected for these large construction packages will provide the skilled and experienced foreign workers for the Construction phase of the ISUA project. At this point of the planning of the construction of the ISUA project, it is estimated that international contracts with foreign workers will account in the range of 90% of the total labour during the construction phase.

Figure 6-1 ISUA Project Potential Contract Packages intended for competitive bids with Greenlandic contractors/suppliers for 2012-2013.

Figure 6-2 ISUA Project Key considerations for Contract Packages intended for competitive bids with Greenlandic contractors/suppliers.

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Figure 6-3 ISUA Project Potential Contract Packages 2013-2015 for competitive bids.

The direct local employment during construction is expected to be generated by the small construction packages to be contracted to local enterprises and participating in a supporting role for the large international packages. For the purpose of the SIA, the working assumption for the construction period is that the number of local workers that might be available in Greenland during construction is estimated in the range of 7-10% of the total number of construction workers.

Assuming this level of construction labour can be found and mobilized in Greenland, the direct employment impact during the construction phase can be considered medium positive and will be perceived mainly at the local level for a period of approximately three years.

Indirect employment and Business Activities for supporting the Construction During construction phase, a number of indirect jobs will be created as consequence of the provision of logistic services, other services and package contracts as described in the following section.

The estimated creation of 210 to 430 new indirect jobs is based on the following scenario:

• 2000 to 3300 workers during the construction phase, with 7%-10% work from local contractors • List of suppliers (see list below, page 103) and potential services contracts to support activities related to construction

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• An average of 100 international short term consultants, providers, contractors etc. with activities mainly on site in transit in Nuuk every month. • Limited housing availability in Nuuk during the construction period

6.1.2.2 Employment during Operations

Direct Employment As indicated in section 6.1.1 above, between 680 and 810 jobs (yearly average) will be created during the 15 years of operation to cover the approximately 200-300 positions required by the project. The jobs generated by the project will be all year around.

Work Schedule

The general working schedule during operation for all positions is 6 weeks “in” (meaning at the Isua site), and 3 weeks “out” (meaning at home). 6 weeks “in”/3 weeks “out” is called the “rotation” of the mine staff. In order to cover 2 working shifts of 12 hours per day, 3 crews are required for the operation, 2 crews being on site and the third one being off-site on rotation (at home). For positions that require only 1 shift of 12 hours of work per day, 2 crews are required, one at the site, the second one on rotation at home.

For the Greenlandic and Western workforce during operation, the schedule of 6 weeks “in” and 3 weeks “out” is also based on 7 days/week, 12 hours/day work schedule.

As explained above, Chinese/Asian operators will be needed during the first 5 years of operation. For these workforces during operation, the work schedule is planned to be 22 weeks “in” and 4 weeks “out” (at home). In this case, the work schedule is based on 12 hours per day, 6 days per week (instead of 7 days/week). Due to the longer rotation for the Chinese/Asian workforce, a 1-day rest per week is required at the site. Furthermore, the longer rotation for the Chinese/Asian workforce during the first years of operation is also due to other factors, namely: much longer travel to return home during the rotation; long rotation is standard practice for Chinese/Asian workers who work far away from home for long period.

Strategy Outline for Training and Recruiting As indicated in section 6.1.1 above, it is expected at the beginning of the operation phase that about 20% of the jobs, mainly non-mining jobs, can be filled by local Greenlandic workers. The percentage of local workers is expected to progressively increase based on training and by the 5 th year of operation it is an objective that 55% of the positions can be filled up by local personnel from Greenland. These figures are not formal quotas but they are estimates based on the existing and projected number of local persons with the required qualifications.

Because the start-up of mine equipment requires highly specialized technicians, engineers and senior operators, there will be in excess of 10 to 15% expatriates during the start-up period (which includes commissioning specialists). An operational readiness program will be implemented to ensure the operating organisation is ready to successfully manage the facility from start-up, and that the workforce is well-trained and capable.

For the first five years of operation, the mine and the process plant will have very experienced Chinese/Asian operators and supervisors in various positions, in addition to western and Greenlandic staff. These experienced operators are difficult to find because most are already occupying positions in other similar mining operations in the world

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(Canada, Brazil, Africa, and Australia etc.). For this reason, the planning of the first years of operation must realistically include sourcing of experienced personnel from China or other Asian countries as applicable. Based on training which will be started and implemented even before the end of construction for various types of positions, it is planned to progressively replace the Chinese/Asian operators during the first 5 years with local or regional personnel from Greenland, subject to availability of Greenlandic candidates for training. To achieve this, support will be sought from local government and public employment agencies in order to identify and attract the best candidates.

The key objective is to hire as many local qualified candidates as possible who have successfully completed a minimum educational requirement, and who have a proven ability to learn, and meet other job-specific selection criteria.

In order to progressively replace the Chinese operators, labourers and supervisors, recruiting of local Greenlandic staff for training is expected to start during the construction period, subject to support and guidance from the Greenland government agencies, thus ensuring sufficient time to achieve the training competencies required.

Based on experience from previous mining projects and consultations in Nuuk, potential barriers for achieving the expected percentage of local workforce at ISUA include:

• The small population of Greenland: there is no large number of skilled and experienced workers in mining process etc. available in Greenland. • Lack of minimum qualifications/experience for the required positions • Competition with other mining and oil projects for qualified workers • Health limitations of potential local candidates • Low levels of retention of local workers due to difficulties in adapting to the working schedule; • Language: it is expected that a basic level of English will be required for most of the job positions.

The jobs expected to be filled locally cover a wide range of qualifications and specialisations: medical staff, kitchen personnel, security, laboratory technicians, secretaries, IT, assistant, training coordinators, human resources, environmental technicians and professionals, health and safety officers, drivers, operators of shovels, trucks and bulldozers and operations at the port facilities including support to navigation. Most of these positions will require as a minimum a basic level of English due to safety reasons and due to communication with other employees. Language proficiency in English and/or Greenlandic and Danish may be required for positions where good communication is crucial.

There will be no restrictions related to gender or origin if qualifications are met. A number of jobs are expected to be filled by female workers (secretaries, nurses, etc) but also more technical positions could also be filled by women, local or international.

There will be approximately 200-350 highly technical types of positions at the mine (primary crusher, process plant, power plant, dewatering plant and ship loader etc), and it is the objective of the Project to bring the necessary training of local candidates in the various areas of mining operations. It is expected that the School of Minerals and Petroleum in Sisimiut can provide the basic qualifications, which will need to be upgraded through specific in-plant training and apprenticeship programs organized by London Mining in collaboration with Greenland Agencies, Institutions and partners.

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Potentially, unemployed workers can benefit from the job opportunities created by the ISUA Project during the operation phase 7. However, the most likely scenario is that the project will attract mainly workers already employed in other sectors and new graduates. Indirectly, this will create new opportunities for the unemployed workers throughout Greenland. This scenario applies to workers and unemployed from all municipalities in Greenland. This is due to the fact that as part of the rotation system, the transport to the place of residence will be partially or fully paid, and the distance to the place of residence is basically less of concern if the worker has the required qualifications.

Positive impacts of direct and indirect employment will be more clearly perceived at community level in settlements and small towns than in large towns. Unlike other mining operations in the past, the jobs in ISUA project do not require the employees to move close to the mine, and therefore the positive effects of local employment will not be geographically concentrated, but distributed along Greenland and depending on the origin of the local workers.

The positive impact of employment at household and community level goes beyond the financial benefits as both the husband and wife provide support for the family in Greenland.

Indirect employment and Business Activities to support Mine Operations

The types of indirect jobs to be created in Greenland as a consequence of the project’s operations are expected to be related mainly to private services, including but not to be limited to the list below:

• Fuel supply • Boat operators • Shipping • Helicopter support • Airline • Travel and tourism • Logistic services • Surveying services • Telecommunication support services • Supply of food and catering services • Cleaning services • Office supplies • Advertising in newspapers, TV • Translation services • Marketing support services • Printing services for training material, advertising, signs at the plant, booklets etc. • Supply of Health & safety gears and materials • Training support services

7 The unemployment rate for Greenland in 2010 is 7% equivalent to 2045 people and 1.6 % (January 2010) in Nuuk (Kommuneqarfik Sermersooq) and over 8 % in Sisimiut and Maniitsoq (Qeqqata Kommunia). Unemployment in Kommuneqarfik Sermersooq is mainly seen among unskilled workers. However, workers with vocational training in areas such as iron and metal building and construction, trade and office, shipping and navigation and fishing are also experiencing unemployment. In Qeqqata Kommunia, unemployment is distributed as Sermersooq.

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• Spare parts supply • Environmental services for monitoring during construction • Security services • Indirect jobs at customs, import/export etc.

Furthermore, a small increase of public servants for duties directly related to the project at national (custom, Import/export, immigration, safety and environmental inspections, etc.) and municipal level can be expected.

An indirect job factor of 1.3 means that for every person directly employed in the project, 0.3 new indirect jobs will be created. In the case of ISUA, if this factor proves to be correct for mining projects of this magnitude, the number of new indirect jobs created in Greenland is estimated to be in the range of 210-430 during construction. This number does not include indirect jobs created outside Greenland as consequence of the project (i.e. production of raw materials for the goods and services consumed, specialized consulting services, etc.)

The lack of available houses/apartments in Nuuk for the future employees and service providers could create a problem for the project, or at the same time create opportunities to stimulate the development of residential housing. It is expected that the activities in the construction sector will increase notably during the first years of the project. These additional temporary, seasonal jobs expected to be created in the construction sector should be added as well to the 210-430 indirect jobs originally estimated.

6.1.2.3 Summary of impacts on employment – Direct and Indirect Employment

Expected Direct jobs Expected Indirect jobs Total Local Construction Phase 2012 300 7-10 % of 210-430 1 2013 2000 total 2014 3300 2015 2000 Operations 680-810 20-55% 3 180-240 2 Phase 15 years Table 6-8 Estimated employments during the lifetime of the project 1 Calculated with a factor of 1.3 of local jobs plus 0.2 more from year 2013 to cover international workforce on transit or short term in Nuuk. 2 Does not include potential expansion on the construction sector in Nuuk. 3. Expected direct local jobs are not formal quotas but estimations based on the existing and projected number of local persons with the

required qualifications.

The impacts of the direct local employment during construction is valuated as positive medium, as long as the expected share of local employment is not limited by local availability. The impact will be perceived at national level for a period of 3 years and will continue, extend and expand into the period of the mine life.

A majority of job positions during operations are available to local workers, and measures will be taken in order to maximize the share of local employment.

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The number of job positions created by the project is high, particularly for Greenland, but due to the existing barriers for the achievement of the expected percentage of local workforce, it is conservatively characterized as Medium positive.

Given the lack of previous experience in Greenland with projects of this type and size, there is uncertainty associated with the multiplier factor to estimate the creation of indirect employment. This needs to be monitored in collaboration with local authorities and employees and employers organizations, having into account the potential synergy effects of other oil and mining projects in Greenland. With the existing information at the time of preparing the SIA, the impact on indirect employment is valuated as medium positive during construction and high positive during operation as it will be limited by how fast local businesses can be ready to accommodate the project’s needs during construction phase. These positive effects are expected to extend and continue into the 15 years of operation and potentially beyond.

While the duration of the employment will cease together with the project, the benefits related to employment, such as enhancement of qualifications and experience, pension and savings, etc. will last beyond the employment time.

Table 6-9 shows the anticipated impacts on the economic environment (direct and indirect employment) with regards to mitigation under construction and operation.

Anticipated overall impacts Impact category – Construction Before mitigation After mitigation Economic environment No mitigation M+ Direct employment required/proposed measure to M+ maximize the Indirect employment benefits Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Economic environment No mitigation M+ required/proposed Direct employment measure to H+ maximize the Indirect employment benefits Table 6-9 Anticipated impacts on economic environment (direct and indirect employment) before and after mitigation.

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Proposed measures to maximize share of local employment:

• Early implementation of a Human Resources (HR) Division (when permit for construction is granted) with HR staff dedicated to implementation of recruitment campaigns and contact with candidates in Greenland. Initially, this can be supported by a locally based headhunting or HR development company. • Extend recruiting campaign to Greenlanders currently based in Denmark. While Greenlanders in Denmark read Greenland newspapers, use internet and are informed about job opportunities, arrangement for providing additional information or making interviews in Denmark could be of advantage. • Prepare a detailed job description for each of the job positions, and their corresponding requirements. • Pro-active and early communication with the Labour Unions, Professional associations and Municipal Job Centres on basic requirements to be filled by aspirants to jobs at ISUA, so they can upgrade the qualifications of these associates and clients interested in jobs at ISUA. • Discuss with the School of Minerals and Petroleum and ARTEK the possibility of adapting the curricula of the basic training courses and the development of advanced courses in order to match the needs of ISUA project and other highly mechanised mining operations, and thereby improve employment prospects of new graduates. • In order to improve the retention of local workforce, it is recommended to ensure the presence of Greenlandic speaking HR staff, and include as part of its role counseling services to help the workers to develop personal and group strategies to solve interpersonal conflicts and overcome difficulties adapting to the working and life condition. • Train local foremen of the so-called trainee programs • Intensive linguistic upgrading English courses to be established by the Language School

6.1.3 Local business and economy during Construction

Local business life is expected to be one of the area’s most positively affected by the ISUA project, as the opportunities created by the project are not only significant in volume, but also very diverse and targeting different segments of the society and local business life.

The following activities and aspects are expected to result in direct and increased opportunities for local businesses:

• Contract packages during Construction phase • Demand for transport services • Demand for food and goods • Demand for communication, logistics and support services • Demand for housing and accommodation services

The price of foods and goods is assumed as delivered at the ISUA port for the purpose of this study and therefore not included in transport services.

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To what extent the opportunities will turn into a real quantifiable impact will depend on the readiness and capacity of the local business sectors and authorities to respond to such opportunities. Some of the challenges may include:

• For established companies, some resistance to try new business areas • Lack of financing instruments to provide starting capital for ambitious small-medium business projects. • Lack of qualified local people

6.1.3.1 Impact on local business and economy during Construction

The construction phase will provide concrete and direct opportunities for the local business, as some of the contract packages are specifically targeted to the local companies under the terms of technically capable and economically competitive.. Local companies may choose to or not to partner with international companies to enhance their capabilities and competitiveness.

Besides contract packages, during the construction phase housing and accommodation services, as well as restaurants, taxis, bars and leisure time services will be required. Some working assumptions were considered as follows:

• International staff based in Nuuk and Greenlandic staff which are not resident in Nuuk, approximately 80 persons • Approximately 80 international staff such as technical consultants, investors, journalists, finance staff and providers who will make short-term visits to Greenland each month. The bulk of their time will be spent at the mining site but the visits may include transit stops in Nuuk for a limited amount of days at a time, approximately 240 nights/month, especially if weather conditions delay onward travel to the actual site • For the purpose of their rotation to home, construction workers will transit in Nuuk to get to the airport. The operation of transporting workers will be managed by the Mine personnel. For instance, small groups of workers will arrive at the port of Nuuk under the supervision of a mine safety officer; once at the port of Nuuk, the small group of workers will board a bus to go to the airport, as per the scheduling of the chartered flights. As a general rule, the operation of transporting workers on rotation will not be designed on the basis of workers spending the night in Nuuk.

As a general rule, it is not expected that the workers will choose to spend their free time in Nuuk. A short stay in Nuuk implies a high risk of delayed returns due to weather conditions, long transport time compared to available free time and high prices of accommodation, services, etc. The workers will be scheduled to work on rotation. During their rotation; transport to their home will be partially or fully paid including return to the site. However, it reasonable to expect that the workers will visit Nuuk on some occasions.

The possible benefits and impacts from transporting the workers by boat through Nuuk are not quantifiable because the transit of workers is expected to be done straight from the port of Nuuk to the airport. This option or scenario has not been discussed with local stakeholders and informants; therefore the possible impacts are assessed conservatively to be negative.

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Proposed Local Packages Content of the package

Camp and Logistic Supporting Logistic services, camp operations and general supports

Construction Camps Temporary construction camp

Laydown areas and preparation lay-down area, temporary wharf/landing area, works at the port site preparation constructions

General Site Services Communications, Health&Safety, First Aid, Site Security, Site traffic control, Site administration, Monitoring programs

Providing charter flights, helicopter services Local air and sea transportations and seas transportations for construction teams

Field Drilling Geological and Geotechnical drilling

Assistants or leading in construction of two Permanent Camps permanent accommodation complexes: one in port area and one at the plant area

Mine area pre-stripping and mine road Mine Pre-Stripping construction, 2014-2015

Table 6-10 Summary of potential local contract packages during construction.

Table 6-10 summarizes those of the contract packages that are intended to be offered on a competitive bid basis to local Greenlandic contractors/suppliers with or without partnerships with foreign contractors/suppliers

Demand for additional transport services during Construction The following services related to transport of staff and some goods are expected to be provided by chartered flights and/or by boat operators between Nuuk and ISUA port:

• Boat transport of construction workers and other personnel. Generally all other supplies, equipment and fuel will be transferred directly to the ISUA port; • Air transport of international workers from/to Greenland to/from other countries; different options will be considered in this respect, for instance: chartered flights from Canada to Greenland; chartered flights to Greenland via Iceland; and the current option of flights from Greenland to Copenhagen • Helicopter charter support services

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6.1.3.2 Local business environment and economy during Operation

Demand for transport services during Operation

For the air transport of the mine operation workers, the design/planning assumption at the time of preparing the SIA is based on the use of chartered flights. There will be some staff categories like short terms specialists, technology suppliers, advisers, managers, etc. who will continue to use Air Greenland.

The following services related to transport of staff and goods are expected to be provided by local companies:

• Air transport between future ISUA’s air strip and Nuuk and international airports in Greenland if the planned airstrip is deemed necessary later on • Boat transport of mine personnel. Other supplies, material and fuel are generally transferred directly to Isua port; • Air transport between Nuuk, Kangerlussuaq and Narsarsuaq airports to the places of residence of local staff • Helicopter charter support services

From the international airports, Kangerlussuaq and Narsarsuaq, in Greenland, the workers will be transported back and forward from their place of residence, inside or outside Greenland. For the 140-455 local workers, the transport to their place of residence will most probably be conducted by regular Air Greenland domestic flights and the volume of this transport cost can be considered as spent locally.

International workers from/to Greenland to/from other countries; different options will be considered in this respect, for instance, chartered flights.

Besides the regular staff of the project, it is estimated that around 25 international service providers (consultants, specialized drilling services, etc.) and other persons related to the project will also travel to Nuuk every month during operation. This service is assumed to be provided by Air Greenland.

Demand for Food and Goods During Construction and Operation At this point in time no decision has been made as to how the service of the canteens will be provided during construction, either fully outsourced or operated by Contractors employees.

For the operation phase, the planning of the ISUA operation includes at this stage employees for the management and the operation of the kitchen/cafeterias at the process plant accommodation and at the port area accommodation. As to the supply of food and beverages, it is assumed that this will be provided by local suppliers if a competitive price and quality of service can be offered. Nevertheless, it is important to notice that with few exceptions, there is no local food production in Greenland and most food and beverages need to be imported.

Fish and local red meat (caribou, musk ox, etc.) and other ingredients for local food will be provided locally.

Diesel, oil and lubricants may be supplied based on different options: local supplier and international suppliers.

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Machinery, technical equipment, work clothes and safety equipment, spare parts for vehicles and machines, laboratory supplies will mostly be imported.

Demand for Communication, logistical and support services Communication and support services that could be provided locally to the project include, without being limited to: • Geotechnical investigation • Camp management and logistics support • Field geological and geotechnical drilling • Ice monitoring operations • Tug operations • Field helicopter supporting • Climatic data collection and field surveys • Waste management • Site communications • Catering • Leisure time services at site • Laundry • Cleaning • Translation • Legal aid • Building maintenance (carpentry, electricians, plumber, etc.)

The provision of these services will be offered to local providers on a competitive bid basis

Demand for Housing and accommodations services The following services related to housing and accommodation, as well as restaurants, cafés, taxis, etc.) will be required by the project:

• As already indicated in the previous sections, there will be international visitors on short-term assignments such as engineers, technicians, supplier’s representatives, etc. The bulk of their visit will be spent at the camp, with the assumption of 2 – 3 overnight stays in Nuuk en route to and from the camp. This would amount to an estimated working assumption of 240 nights per month in Nuuk, and these stays will include indirect expenses such as expenditure in bars, restaurants etc. • Long term housing in Nuuk was assumed to the level of 50-100 staff members during the mine life, potentially with their families. This may include other regions in Greenland or even Greenlandic staff residing in Denmark, who choose to move to Nuuk with their family. • Occasional layovers in case of bad weather or/and technical problems on boat and air service may require accommodation, housing, food services and taxis etc. for workers travelling through Nuuk when changing shifts.

As of today, there is neither an availability of short term nor long term housing facility ready for the above mentioned amount of staff. Despite the official 40-50% occupancy rates of the hotels in Nuuk (which can be explained with rooms designated to two people being occupied by single persons, which is the common case when traveling on business), the local capacity seems to be reached, soon exceeded with the increasing activities in the mining and oil sectors.

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The positive impact on short term accommodation and related services is therefore limited by and depending on the capacity of the local infrastructures. The existing situation can be classified as low positive. If the local market responds to the opportunity provided by this and other projects and increases the hotel capacity, the impact on the local business life could be considered high positive, and will have an influence not only directly in the hotel sector, but also in the diverse providers and associated services.

Business opportunities indirectly associated with the project In addition to the business opportunities created directly by the project, it is expected that the project will have a significant influence in the development of businesses in other sectors. One of them is the local consumption of tourism and spare time services and goods, which will be further described in the section “conflict and synergies with other economic activities”.

It is also expected that some business areas/types which are not significant or do not yet exist will be created or undergo significant development as a result of the project:

• Private primary education and day care services for expatriate families • Private health services (dental, physiotherapy, etc.) • Private English/Greenlandic teaching • Private counseling (alcohol and other addictions, family or couples therapy, career development, etc.) • New business for large scale recycling and re-use of solids wastes such as paper, tires, cardboard, scrap metals, etc.

There is insufficient information or previous experience to quantify this impact, but it is recommended to monitor the development.

6.1.3.3 Summary of impacts on the local business environment and economy

There will be a number of opportunities for local business provided by the project during both the construction and operation phases. These opportunities include:

• Drilling, logistic support, field supervision, geological survey and helicopter support during construction • Construction of temporary and permanent camps, site services and pre-stripping • Waste management during construction and operation • Air transport during construction and operation • Boat transport of workers during construction; boat transport and/or air transport of mine personnel during operation • Helicopter support • Demand for food and goods, particularly local meat and fish • Camp logistics and support services (catering, leisure time services, laundry, cleaning, translation, legal aid, building maintenance, etc. • Housing and accommodation for temporary and permanent staff in Nuuk, including taxi, restaurants, etc.

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The ultimate impact on the business environment in Greenland life will be determined by the capacity of local companies in respond to such opportunities and be able to provide timely services and products of the required quality and at competitive prices. A highly probable scenario is that international companies, (especially Danish ones) and providers of services and products specifically for the mining industry will look to establish themselves in Greenland in partnership with local companies or through local resource persons.

In addition to direct economic benefits, local companies will be motivated to improve the quality of their services and products, health and safety and environmental performance, technology, language skills and general managerial capacity at international level. This quality upgrading of local companies will have a long term positive impact on the business life and employability of the local staff involved.

Business sectors or areas that are expected to be created or enhanced as an indirect consequence of the project may include:

• Private primary education and day care services • Private health services • Private English/Greenlandic teaching • Private counseling (alcohol and other addictions, family or couple therapy, career development, etc.) • Business for large scale recycling and re-use of solid wastes; • Arts, crafts and entertainment • Tourism and free time activities

Factors that influence the share of local impacts, and therefore positive impact of the project include:

• Response of local planning and investment authorities • Capacity of local businesses to respond to the demand • Conditions and restrictions of the tendering documents for the provision of services and products to the project (known and quantified for the construction period, but not yet determined for the operation phase)

The local business activity that is expected to develop during the construction phase will keep expanding, consolidating during the years of the operation phase thus insuring the sustainability to the many benefits: economic, business growth, employment, job training, growing experience and capabilities of local enterprises. The range of business opportunities during operation is also expected to increase in diversity and is therefore considered high medium, with possibilities of becoming high positive depending on the final share of local business on the opportunities created.

Table 6-11 shows the anticipated impacts on the economic environment with regard to Local business life and economy.

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Anticipated overall impacts Impact category – Construction Before mitigation After mitigation Economic Environment No mitigation +M Local business life and economy required/proposed measures to +M • Direct business opportunities maximize benefits • Cost of living No impact expected No mitigation required/proposed +L • Business opportunities indirectly measures to associated with the project maximize benefits Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Economic Environment +M No mitigation Local business life and economy required/proposed +M measures to • Direct business opportunities maximize benefits No mitigation -L • Cost of living required No mitigation required/proposed +M • Business opportunities indirectly measures to associated with the project maximize benefits Table 6-11 Anticipated impacts on economic environment (local business life and economy) from construction and operation.

Proposed measures to maximize share of local business opportunities:

All measures are based on the condition that they are economically viable, or cost competitive, or non-detrimental to the overall cost of the contract.

• Maintain a close dialogue and continuous updates with Municipal and National authorities on the plans and progress of the project, defining as accurately as possible the needs of the project and the timing of the activities during construction. • Maintain regular contact with the Greenlandic Employers’ Associations, keeping them abreast of upcoming opportunities and discussing solutions and alternatives to potential challenges for the local companies to access business opportunities during the construction and operation phases. • Develop a Corporate Social Responsibility strategy and implementation plan for the project including commitments and defined actions towards increasing the share of local business (also known as local content). • Monitor indicators related to volume and type of business and local share, and incorporate to the annual report. It is further recommended to follow Global Compact indicators and reporting procedures, or its specific indicators developed for the mining industry • Unbundling of contracts for services and supplies to camp where there exists no significant cost hindrance to the project • Ensure that possibilities for purchase of local goods and services to the mine camp operation regarding communication, logistical and support services whenever these services are economically competitive

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• Inform Tourist Council and Municipal authorities on the expected requirements of hotels and temporary housing for each year • Provide possibilities/flexibility of catering services to supply local/Greenlandic food • Engaging the professional hunters in Kapisillit and Nuuk in providing some of the regular Greenlandic food for the canteen and camp in general

6.1.4 Conflicts and Synergies with Other Economic Sectors

6.1.4.1 Potential synergies/conflict with other sectors during construction

Competition for human resources in the building and construction sector The building and construction sector in Greenland mainly operates during the warmer months, with workers experiencing unemployment or part time employment 3-4 months a year. Total estimated number of available construction workers in Greenland is 2904 as given in the Table 5-13 in section 5.4.1.4. It is likely that some of the workers from the construction sector (including carpenters, electricians, etc.) could look for opportunities to join the workforce involved in the activities of the ISUA Project. A significant migration of workers could be conflictive for the sector, if the development plans recommended by the Transport Commission eventuate (airport, new container dock, etc.).

6.1.4.2 Potential synergies and conflicts with other sectors during operations

Synergy within other oil and mining projects While competition for the local human resource is the main conflict with other industries in the sector, there is no doubt that the flourishing of mining and oil projects in Greenland provides the opportunity of synergy among the key actors to positively influence some of the key areas like:

• Increased administrative focus on the sector mining and oil sector 8 • Targeted vocational and professional education • Increased quality and diversification of products and services that can be provided locally • Administrative focus on necessary upgrading of infrastructure and public services

Synergy with tourism and spare time services and goods Given the work organization of the project, a significant number of persons related to the project in Greenland, particularly in Nuuk, will have both the resources and time to consume local spare time products and services. Some of the areas that are likely to grow in Greenland responding to the demand of direct employees, their families and persons indirectly employed or providing services to the mining project include:

• Boats and fishing/hunting gear for use in spare time • Cultural life (consumption of cultural products) and related businesses • Indoor sport/fitness activities • Internal traveling within Greenland • Tourism activities and services in Greenland

8 In 2010 Naalakkersuisut (Greenland Government) developed the vision for the Strategy of Regional Development (RUS). One of the main focus areas is to develop business clusters for selected sectors, starting by Mining and Oil.

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Positive impacts on tourism activities and services are also expected to be noticeable in Kapisillit. The community in Kapisillit, sees the provision of tourism and guide services for employees from the mine during the periods when they are off duty, as one of the main benefits of the project to their community.

Tourism activities and services in the ISUA project area Table 6-12 describes the tourist activities that are arranged by local actors and travel agencies in the surroundings of Nuuk and inside the Nuuk Fjord (DMU, 2008). Greenland Tourism A/S has published trekking routes around Nuuk. None of them or the recommended routes for snow scooters are in the project area are likely to be affected for the project activities.

As a general rule, it is expected that construction workers and operation employees may want to take opportunity of their stay in Greenland to at least enjoy a cruise or a sailing tour in the fjords, or a fishing tour or some other touristic activities while working in Greenland. This may result in a small increase in the demand for the tourism services and activities.

Activities Description Potential impact Cruise At sea Potential small increase. Verification/Monitoring recommended Sailing tour Tours to the inner Nuup Kangerlua No alternative glaciers to be (Nuuk Fjord) near Kapisillit, found in the area around Nuuk Charter tours to the Kangersuneq (Ice Areas and tourism activities Fjord), Lille Narsaq, Kangeq and unlikely to be negatively affected. Håbets Ø in the archipelago. During Probably increase on demand 2010 and 2011 approximately 650 to Verification/Monitoring 700 were guests on trips to the ice recommended fjord, turnover of around 1 million DKK. (HS analyse, 2010) Whale safari Charter tours during June – October Not likely to be affected. Fishing tour Charter tours Popular landing and camping/fishing areas in Qussuk, 5 km north of the projected port site shall most probably be substituted. Verification/Monitoring recommended. Hiking Several days trekking between Probably increased demand Kapisillit and the Ameralik Fjord. New multi-day hiking program close to the project area under development.(HS analyse, 2010) Kapisilit Weekend and summer stays, mostly Demand of guided tours and by Nuuk residents summer/weekend stays expected to increase with families of mine workers and their families as potential customers. Helicopter tour Tours to the ice cap east of Kapisillit Potential small increase or to the abolished settlement of Probably benefit if allowed to Kangeq in the archipelago include ISUA from the air as a tourist attraction Extreme sport Climbing, hang-gliding Not relevant Table 6-12 Potential impact of the ISUA project on existing tourism activities in the Nuuk Fjord.

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On the potential conflicts, it can be mentioned that, unless the hotel capacity of Nuuk is upgraded, it is probable that a shortage of available accommodation could translate in a reduction in tourism to Nuuk, which construction workers and operation personnel may want to enjoy on some occasions.

Tourism in Kapisillit The ISUA project might create synergy related to the tourism activities in Kapisillit, as mine workers are potential customers of tourism activities in the area.

A few community members are involved in courses as tour guides offered by the Department of Business Development in Kommuneqarfik Sermersooq. During interviews and visit to Kapisillit it became apparent that the potential positive impact on tourism in Kapisillit has been identified as the main advantage of the ISUA project for local development by the people of Kapisillit. The Kapisillit area is an attraction for hiking including tours to the ice cap, as well as fishing and hunting.

Competition for qualified workers One of the main impacts of the project regarding other economic sectors is expected to be the competition for qualified local workers. ISUA is the first large scale mining project to enter the scene and may not experience competition at the beginning of the recruitment. Nevertheless, other oil exploration and mining operations will also be compiled to fulfill high percentages of local staff and a hard competition for the same target group of local population and newly graduated Greenlanders abroad is expected once/if the other projects enter the scene.

Other sectors may expect also their qualified staff moving to job positions in ISUA, attracted by better salary packages, the possibilities of full time year round positions and professional development: the public sector, fisheries, and building and construction.

Professional fishermen have displayed interest in joining the workforce in ISUA, particularly for jobs related to outdoors: security, communication with vessels in the fjord, job positions at the port, pipeline, etc. that require work outdoor and good knowledge and adaptation to the local area and climate (NAPP, personal communication, Nov 2011). Because of the working schedule that allows time for fishing and hunting, KNAPK members see the potential recruitment of their associated as a good opportunity to accommodate a gradual change of life style that could benefit particularly young persons who will clearly benefit from a stable salary and working conditions and upgrade of their capacities and employability.

The public sector is the main contributor to employment in Greenland and provides employment to some of the most resourceful and qualified Greenlanders or resident in Greenland. Professional and economic development or simply the challenge of trying something new may drive some experienced and valuable public servants to the private sector. The consequences of this migration can have implications in a time where the Greenland government faces challenges and works for building human and intellectual capital, attracting and retaining people who wish to stay permanently in Greenland and commit to its development.

6.1.4.3 Summary of synergies and conflicts with other economic sectors

Some of the synergies identified so far with other economic sectors include: • Increasing volume of business opportunities for the on shore business and construction sectors

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• Positive potential opportunities for synergy with other oil and mining projects • Positive synergy with tourism activities and spare time services and goods

Some of the conflicts identified so far with other economic sector include: • Competition for qualified workers, including risks of attracting the most qualified and experienced people from the public sector, leaving a vacuum during the time that will take for the new generation to upgrade their capacity and gain experience

Competition for qualified workers is likely to be the biggest conflict with construction, oil, mining and public sectors. It is not likely to be mitigated from the project. Development in this area should be monitored.

It is difficult to predict at this point the amount of impact the project can generate on tourism and fishing as this has not been experienced in the past among mining workers in Greenland, only the top management take these opportunities. As part of the Impact and Benefit Agreement different scenarios should be discussed, as well as recommendations for monitoring during the life time of the project to identify and react both to eventual conflicts or synergies.

Table 6-13 shows the anticipated impacts on the economic environment with regard to Conflicts and Synergies with other activities.

Anticipated overall impacts Impact category – construction Before mitigation After mitigation Economic environment Conflicts and Synergies with other activities -L Not likely to be • Competition for qualified workers -L mitigated Anticipated overall impacts Impact category – operation Before mitigation After mitigation Economic environment Not likely to be -M mitigated on project Conflicts and Synergies with other activities level Not likely to be -M mitigated on project • Competition for qualified workers level • Synergy with tourism and spare time No mitigation +M services required/proposed • Synergy within the mining and oil measures to +M sector maximize benefits Table 6-13 Anticipated impacts on economic environment (conflicts and synergies with other activities) from construction and operation.

Recommended measures for synergies and conflicts with other economic sectors All measures are based on the condition that they are economically viable, or cost competitive, or non-detrimental to the overall cost of the contract.

• Maintain close dialogue and continuous updates with Municipal and National authorities on the plans and progress of the project, defining as far as possible the needs of the project and the timing of the activities during construction.

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• Maintain regular contact with the Greenlandic Employers’ Associations, keeping them abreast of upcoming opportunities and discussing solutions and alternatives to potential challenges for the local companies to access business opportunities during the construction and operation phases. Develop a Corporate Social Responsibility strategy and implementation plan for the project, including commitments and defined actions towards increasing the share of local business (also known as local content). • Monitor indicators related to volume and type of business and local share, and incorporate to the annual report. It is further recommended to follow Global Compact indicators and reporting procedures, or its specific indicators developed for the mining industry • Preferential purchase of local goods and services to the mine camp operation regarding communication, logistical and support services. • Inform Tourist Council and Municipal authorities on the expected requirements of hotels and temporary housing for each year.

6.1.5 Traditional livelihood

Traditional livelihoods in Greenland in general and especially the Nuuk fjord are related to hunting and fishing. The ISUA project area has been traditionally used for caribou hunting, as demonstrated by the archaeological findings south from the mine site (Archaeological report 2009), stories and traditions that last until today.

In order to assess the impact on local uses of the project area, a field work survey with local people has been carried out in June-July 2011, based on interviews of 49 professional hunters and 208 recreational hunters (represented by owners of boats) in Nuuk and Kapisillit, as well as 8 tourist operators. The report of the field work can be found in Annex 5. According to the study, the main cultural activity in the land area is caribou hunting, and partly arctic char fishing in the case of the fjord. Other activities, like bird and hare hunting as well as berry picking have occurred as secondary activities to caribou hunting and would not have taken place if not already in the area. These activities are performed by both professional fishermen and hunters as well as on recreational basis by both Greenlanders and non-Greenlandic who live in Greenland. The Kapisillit inhabitants only use the area for hunting caribous.

Professional hunters report that they sell an average of 70-76% (85% in Kapisillit) of the caribou meat caught in the study area. The rest is consumed within the household or shared with others. Arctic char, birds and berries are mainly for personal consumption, with limited exceptions.

The field work showed that seal hunting is often a primary activity, depending on the time of year. The selling of meat from the seals is very important to hunters in small boats, with the earnings from this often exceeding the income derived from selling the skin. (Orbicon, personal communication December 2011).

Recreational hunting and fishing activities in the study reveal a similar pattern to the professionals, with caribou hunting also cited as the main reason to visit the study area. The meat and fish are used for own consumption and sharing. The amount of household consumption that is prepared from own catch is typically more than half in about 50% of the households in settlements like Kapisillit. In towns like Nuuk, only about 25% of the households prepare half or more of their food from own catch, while 30% of the households do not use fishing and hunting own produces in their food they consume (SLiCA, 2005).

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As it was not identified as a priority issue during scoping or interviews, the detailed characteristics and size of professional and recreational fishing in the waters along the coast known as Akia/Nordlandet (across the fjord from Nuuk and north) were not assessed as part of the study. Small boat activities currently consist mainly of seal hunting, bird shooting and caribou hunting, while fishing for income makes up only a very small part of their activities (HS Analyse, personal communication, 2011).

6.1.5.1 Impacts on traditional livelihood during construction

From the hunters’ perspective, it is perceived that the construction activities will affect the hunting and fishing activities in some parts of the areas designated as II and III in the map. It is perceived by the hunters that the disturbance will be ongoing during the 3 years of construction. Most of the disturbance is temporal and expected to be reversible, except in the area known as Taseraarsuk, where the port site and industrial complex will be constructed.

Figure 6-4 Map detailing where professional hunters fish for Arctic char in 2009 - 2010

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Figure 6-5 Map detailing where professional hunters hunt for caribou in 2009 – 2010. Note: the construction of the airstrip shown in the figure is to be decided during the operation phase subject to project requirements.

Areas I and II were visited in 2009 and 2010 by 35-37% and 35-39% of the recreational hunters interviewed respectively, while the other areas were visited only by 32% (Area III) and 25% (Area IV) in 2010. Area II is also popular among the professional hunters, but Areas III and IV were more visited by this group.

Enjoying and experiencing nature is the main motivation for recreational hunters to go hunting, therefore it is expected that they will avoid areas with human activity and will find undisturbed spots in Area I, III and Area IV with high density of caribous. As the study area is considered a favourite area for hunting, professional hunters from Nuuk and Kapisillit will most probably continue their activities in the project area during the construction period, following the caribous.

The impact of the project on traditional livelihoods for professional and recreational hunters from Nuuk and Kapisillit during construction is considered low negative, specific to areas close to project infrastructures and limited to the 3 years of construction activities

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6.1.5.2 Impacts on traditional livelihood during operation

During scoping and further consultations with Greenlandic authorities, hunters and general public, the main concern during the operation phase was related to the impact that the slurry pipeline across the whole area may have on the movement of the caribou population, particularly during calving season. The outer diameter of the slurry pipeline including insulation is:

• 61 cm from Port to Crossing #1 • 66 cm from Crossing #1 to process plant • Outer diameter for fuel pipeline is 17 cm

In the EIA of the project, design measures are proposed to limit the potential impact on movement of caribous across the road and pipelines (Orbicon, 2011). This includes, among others: • Approximately 47 ramps located along the 105 km slurry and fuel pipeline. The ramp locations are identified based on field investigations about the movements of the caribous in this area, aerial photos map interpretation etc. • Restrictions for company vehicles in driving randomly (e.g. use convoy instead) as mitigating measure in order to reduce disturbances

Figure 6-6 Visualization of gravel ramp across a large diameter pipeline that permit caribou to follow traditional caribou trail system at ISUA (Orbicon, 2011) . According to the study on caribous (EIA, Orbicon 2012), there is no reason to believe that the caribou population in the area will be significantly reduced because of the project. Thus, a probable scenario for the hunters during construction and operation may imply:

• Fewer caribous in the project area because they are disturbed by mining activities • Restrictions in the area where hunting can take place. It is likely that London Mining and/or authorities will set up areas at the port facility and along the access road where hunting is forbidden for safety reasons.

From the professional hunters’ perspective, the implications could be: • Reduction in the number of caribous shot. • More time, effort and resources will be required in order to shoot the same amount of caribous

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It is expected that, overall, hunting activities will continue in the project area, with the hunters following the caribous, probably in areas that were less frequented prior to the commencement of the project. No negative impacts on seal hunting or commerce of its skin are expected during operation phase.

Professional hunters and fishermen in Nuuk are one of the lower-income groups among the economically active part of population. Caribou constitute one of the main sources of income for the hunters in Nuuk. An eventual reduction on the number of caribous shot every year may imply for a hunter and his family a reduction in the household income, in food security and in social relations, deeply bound to cultural food sharing. The impact on traditional livelihoods during operation is considered low, limited to professional hunters and recreational hunters that usually use the project area, and to the 15 years of operation of the project. Nevertheless, due to the reasons explained above, mitigation measures are recommended in order to ensure that the impact remains low. Continuous monitoring of both impacts on caribou as well as of hunting and other traditional livelihood activities in the project area, in collaboration with KNAPK, are fundamental in order to verify the assessment and identify unexpected impacts or developments.

Kapisillit A significant percentage of the potential workforce is very attached to the traditional livelihoods in the Kapisillit. A vast majority of community members in Kapisillit derives a significant part of their consumption of Greenlandic food from their own catch. People from Kapisillit caught 287 and 275 caribous in the project area in 2009 and 2010 respectively. Even though there are caribous around Kapisillit, the concentration of these is higher in the project area and the animals from here are mainly sold at the “brættet” (public market) in Nuuk. The individual hunters claim to sell between 70 and 100 percent of their catch from the project area. The household fishing and hunting activities is a significant financial contributor as it decrease the need for buying food. It is especially important as the expenses for heating during the winter season form a very high percentage of household expenses.

No impacts are expected regarding the use of natural resources in the areas around Kapisillit. Of the 287-275 caribous reported caught in the ISUA project area during 2009 and 2010 respectively, the recreational hunters’ share was around 20 animals. Once knowing the final alignment of the road, none of the professional hunters in Kapisillit expressed concerns related to impact on caribou hunting. A road alignment further south from the planned one was considered to be more problematic (Information meeting, Kapisillit May 2010). The impact of the project on traditional livelihood for Kapisillit is considered non-significant.

6.1.5.3 Summary of impacts on traditional livelihood

Potential impact of the project on the caribou hunting activities, both on professional and recreational hunting were identified as main concerns during scoping and further consultations. The significance of the impact of the project in the caribou population during construction and operation has been evaluated in the EIA of the project as low after the application of mitigation measures (Orbicon, 2011).

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According to a local use study, 63-72% of the 49 professional hunters interviewed have visited the area during 2009 and 2010, and 60 - 62% of the approximately 250 interviewed boat owners who are in possession of a valid hunting license (HS Analyse, 2011). Please note that caribou hunting is important as an activity among recreational hunters more so than the economical aspect as the recreational hunters are not allowed to sell their catch. Based on the expected impact on caribou population and the assessment of the economic, social and cultural importance of caribou hunting in the Nuuk area, the significance of the impact on traditional livelihoods can be assessed as low negative during construction and the operations phase. The impact is considered low for the inhabitants of Kapisillit. This evaluation includes concerns and perceptions of impacts identified during scoping and baseline consultations.

The impact is expected to last from construction throughout the life of the project and closing phase, and will manifest immediately. From a livelihood perspective, it is expected that, given the relative small area of disturbance of the project and ample alternative habitats, hunters will adapt to the potential changes of group size and behavior of caribous in the project area, preserve this form for livelihood and continue caribou hunting and secondary activities in the area, in similar degree as before the project. With appropriate mitigation measures, the impact can be kept low for both construction and operation.

The final impact of the construction activities on hunting and fishing activities, both for professional and recreational hunters in Nuuk and Kapisillit needs to be monitored and evaluated in order to implement corrective measures as necessary.

It is recommended to involve KNAPK (association of fishermen and hunters) in the development of the monitoring framework for wildlife and the consequences for the traditional livelihood. Indicators of impact on well-being of hunters and household economy related to traditional livelihood will be integrated to the monitoring and evaluation plan to be incorporated into the IBA.

Table 6-14 shows the anticipated impacts on the economic environment with regard to traditional livelihood in Nuuk & Kapisillit.

Anticipated overall impacts Impact category – Construction Before mitigation After mitigation Economic Environment Traditional livelihood in Nuuk -L -L Traditional livelihood in Kapisillit -L Not significant Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Economic Envi ronment Traditional livelihood in Nuuk -L -L Traditional livelihood in Kapisilit -L Not significant Table 6-14 Anticipated impacts on economic environment (traditional livelihood in Nuuk and Kapisillit) from construction and operation.

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Proposed Mitigation measures related to impacts on traditional livelihood.

• Strict enforcement of prohibition of all hunting activities for contractors and subcontractors involved in the project both within and outside working hours, during all phases of the project. Discuss acceptable terms to regulate hunting activities for local staff, contractors and subcontractors outside working hours. • As per EIA, implementation of mitigation measures for preventing or reducing impact on local flora and fauna, particularly on caribou due to disturbances created by project activities during construction and operation, as well as potential barriers due to project infrastructures. • In coordination with national authorities, establish exclusion areas during construction and operation, where hunting and fishing activities are not allowed due to safety and security reasons both for the hunters and the staff. • As per EIA, establish a monitoring plan to register and study changes in the caribou population of the area. Moreover perform annual monitoring of hunting and other traditional livelihood activities in the project area, in collaboration with KNAPK. • Provide initial and regular information and explanations about the exclusion areas to the professional fishermen and hunters through their organization, KNAPK, as well as to recreational hunters through public media, meetings, pamphlets, etc. Coordinate with local authorities for reinforcing the information campaigns when licences are renewed, etc. • Continue the presence of representatives of KNAPK in the consultation committee of the project. • As seal hunting is commonly a secondary activity of fishing, the amount of caught seals declared during the study may indicate that fishing activities with small boats is an activity more widespread and significant than originally expected. It is recommended to perform a quantitative study and mapping of professional and recreational fishing in the waters along the Akia/Nordlandet area. • Annually cross check monitoring environmental information with impacts on performance and hunting/fishing areas for both professionals and recreational hunters. • Caribou meat bought from local professional hunters in Kapisillit and Nuuk for consumption at the ISUA project to support meat sales. • Seals skin and other artifacts of local products could be sold to workers at the ISUA project. . 6.2 Education and Training

6.2.1 Training skills development opportunities during construction

To realise the vision of a safe, successful iron ore project, operated by a large, competent, trained and efficient workforce, London Mining will make a significant commitment to the people for their training and professional development. Without this commitment, the vision is unlikely to be achieved.

To this end, the organizational structure of the ISUA operation will include a dedicated manager responsible for the ISUA training programs and training resources. The Training Manager will report to the executive HR manager. A team of training specialists, as well as training consultants, will report to the Training Manager.

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The ISUA training team will have many tasks to accomplish, including defining the specific contents of the training programs in different languages; selecting and developing training methods, such as “on-job trainings”, apprenticeship, simulators.; day-to-day scheduling and delivering of training programs in different languages; measuring performance of training; coordination of the training programs with inputs and direct involvement of different Greenlandic agencies and resources. The main agencies to be involved in the general coordination for the ISUA training programs will be the Greenland Education department, BMP, Labour department and the Greenland School of Minerals and Petroleum.

6.2.2 Training skills development opportunities during operations

The main impacts on training and education are expected to be:

• Increased specific capacity for working in the mining industry for the local workers • Availability of apprenticeship positions • Increased motivation and interest towards careers related to the mining industry and upgrading of language, administrative and technical qualifications. • Increased administrative focus on relevant training and local employment opportunities in the mining sector

The scope of the training programs will be developed according to 4 main axes:

• Health, Safety and Environment; • Technical training and skills development in connection with mining, ore processing, and other technical sectors of the ISUA operations. • Cultural Training to help foreign workers discover the Greenlandic society and to promote cultural fit. • Various training programs aimed at promoting and supporting the development of new local Greenlandic businesses servicing the mine operations.

Of a particular importance is the technical training of local Greenlandic personnel in various sectors of mining operations. No other large scale mining project has ever been developed and operated in Greenland, and no other large scale industrial operations exist in Greenland. On this basis, the ISUA Social Impact Assessment study (SIA) has established that Greenland has a very limited reservoir of skilled personnel available for filling positions in a large scale mining operation such as ISUA, and where some 800 employees are to be required for the many technical areas of the mine operations (open pit, primary crusher, process plant, power plants, port facilities, etc.).

Under those conditions, technical training will be a key project function to achieve the objective of progressively replacing expatriate technical operators and workers by local Greenlandic personnel. In Greenland, training will thus be a key aspect of the recruitment strategy. In the area of technical training for Greenlandic personnel, a very close collaboration and working relationship will be set up with the Greenland School of Minerals and Petroleum.

In terms of technical training, an operator training program and an operator training centre will be developed in advance of commissioning the Isua Project in order to deliver the quality and quantity of employees necessary to meet London Mining’s operating objectives.

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Advanced training technologies such as simulators will be used to accelerate learning and provide hands-on experience on equipment that will not be immediately available to the operators in training (e.g. heavy haul trucks).

As Greenland currently does not benefit from a significant mining industry, associated mining or heavy industrial training infrastructures are absent locally. As such, the project’s training program will compensate with additional “gap” curriculum. A general overview of the program includes three main themes: basic skills, specialized skills and HSE skills.

Basic skills training is targeted to individuals lacking the background (either academic or experience) on an iron ore processing operation. It includes: • Technical basics (including industrial equipment, process control, skills in reading Process and Instrumentation diagrams etc.); • Mining and mineral processing basics (including physics, chemistry, crushing, grinding, etc.).

Specialized skills training is targeted and customized to each job profile (for example primary crusher operator, tug operator or heavy truck maintenance technician). It includes theoretical and practical training relating to the specific tasks and responsibilities of the job and assessments which demonstrate proficiency and safety in accomplishing those tasks. A process operator for example will receive training on the process, equipment, control and normal operation for his area of responsibility, including additional information relating to process upstream and downstream to understand their impacts.

One key feature of ISUA operation during the initial years is the likely operational labour mix (Greenlandic, Chinese/Asian, Western countries). For this reason, instructors will be selected with languages capabilities as required for the various groups. Similarly, the training material developed for the project and vendor provided training will also need to support these languages (English, Chinese and Greenlandic).

HSE skills: In support of the strong HSE vision, culture and commitment of the project, an HSE training program will ensure that employees understand risks and hazards and how to manage them. Each training module will include assessments which will demonstrate the related HSEC skill acquisition. The program will include, among others: • Basic safety awareness; • Working at heights; • Working in confined spaces; • Lockout electric panels and other electric equipment / Tag out equipment with potential safety hazards; • Defensive driving; • Pre-commissioning and start-up safety; • Hazardous material and WHMIS; • Personal risk assessment; • Education for safety representatives In addition, additional modules will be provided to supervisory level and above, such as Job Hazard Analysis, Critical Risks, Work Permits and others.

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Some HSE certifications will be defined as having an expiry date and needing recertification. This will ensure critical HSE skills are kept up-to-date.

Training Management System A training management system will keep track of training progress and certifications for all employees and provide management reports. The system will also assist in quickly identifying qualified personnel on specific skills (HSE or others) to cover for personnel shortage or roster management.

Training Centre The training centre will host classrooms, training staff, equipment and systems required for the successful delivery of training to London Mining employees. The training centre will be designed according to the number of classrooms, workshops and support infrastructure required.

Increased specific capacity People employed on the project, as well as local companies to which some services will be outsourced will benefit from training on health and safety procedures, working standards for international companies and from improved language skills.

The jobs available at the ISUA project for local workers can be classified as 1) non-mining (administration, human resources, logistics, services, environment, health and safety, port operations and navigation) and, 2)mining positions at the mine and processing plant.

For the non-mining positions, upgrading of general and specific skills and project specific “on-job training” will be provided on-site. Around 150 non-mining positions are expected to be filled with local workers. In case of not filling all positions with qualified local workers, a more intensive training plan will be developed, probably in coordination with the School of Minerals and Petroleum and other relevant agencies and institutions.

For the positions requiring a higher technical level or specific experience in processing plants, it is planned to progressively fill the positions with local workers, depending on availability of local resources and training. A gradual upgrading of qualifications and transfer of knowledge and skills toward local workforce is expected to take place through “on-job” training at the mine where experienced and qualified workers will support the transfer of know-how.

During operations a number of positions are expected to be filled by unskilled workers that will receive basic training on the job. Details on the training programs for upgrading of skills, including potential strategic alliances with SIK, Job Centres, etc. will be developed working with Sisimiut School of Minerals and Petroleum, as well as with Greenland Department of education and Greenland department of Labour. For example, a basic level of English will be required as a condition of employment. Specific on the job training will be provided for all the operators at the mine site, air strip and port site. Most of training can be applied to the mining industry in general, improving significantly the employability of all workers involved in the operations.

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Apprenticeships In Greenland the numbers of apprenticeships are insufficient. It has been identified that a number of students from the former School of Metals and Mechanics could not finalize their studies because of a lack of workplaces available to complete the 6 months of required apprenticeship in their specialty (Pedersen, personal communication, Nov 2010).

The possibility of providing apprenticeships to students from different careers at the Greenland School for Minerals and Petroleum and the Food Service and Preparation School, and other educational institutions will be set up as part of the Impact and Benefit Plan. This will have a significant positive impact on the vocational training sector.

Initially, a range of 30 to 50 apprenticeships can be considered starting after the Mine is fully commissioned in Year 1 (and subject to availability and local demand for apprenticeship positions) every year. Both the educational institutions (SANILIN, ARTEK, Skipperskolen, and INUILI) and the project would benefit from apprenticeships available for Greenlandic students. Furthermore it is typical that many apprenticeships will lead to full employment in the project.

Motivation and Interest Increased wage levels and standards of living can be expected for staff. The diverse employment opportunities created by the project (increasing from about 680 when the mine opens to some 810 or more during 15 years of operation, plus a number of indirect jobs and associated business areas will motivate young people and students to continue their education or initiate vocational training programs and higher education on areas related to the project or the associated services. Similarly, it can be expected an increased interest in upgrading of qualifications in, for example, English language skills, international procedures and standards, as well as in aspects specific to the mining industry, its environmental and social impacts and opportunities.

Administrative focus Given the existing and upcoming activities in the mining and oil sector, it is expected that the local administration will increase efforts on relevant training courses and employment opportunities targeting the sector. This trend can already be seen in the reforms of the School of Minerals and Petroleum and the strategy for regional development, RUC, 2010.

6.2.3 Summary of Impacts on education and training during construction and operation

• Increased specific capacity for working in the mining industry of local workers • Availability of apprenticeship positions, in the range of 30 to 50 per year (subject to the local demand for apprenticeship positions), to benefit the vocational and higher education institutions such as the School of Minerals and Petroleum, Arctic Technology, Navigational school, INUILI (cooking school) and their advanced students • Increased motivation and interest towards careers related to the mining industry and upgrading of language, administrative and technical qualifications • Increased administrative focus on relevant training and local employment opportunities in the mining sector

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The potential impact on education and training within the known conditions is likely to occur. Its significance is assessed to be positive medium, conditioned to the quality and extend of the training program implemented by London Mining, the level of cooperation with the local education institutions and the capacity of these to respond to the challenges and opportunities provided by the project.

The skills developed during the engagement of the project will be relevant beyond the life time of the project, as well as the positive impacts of administrative focus on specific education and local employment opportunities.

Table 6-15 shows the anticipated impacts on the economic environment with regard to Impact on education and training.

Anticipated overall impacts Impact category – Construction Before mitigation After mitigation Economic environment No mitigation required/proposed +M measures to Impact on education and training maximize benefits Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Economic environment No mitigation required/proposed +H measures to Impact on education and training maximize benefits Table 6-15 Anticipated impact on economic environment (education and training) from construction and operation.

Proposed mitigation measures relating to impacts on education and training

• Undertake an assessment of training needs and base on this and the detailed job description, prepare a job training program for the required job categories. • Actively promote training in English language, for both potential workers as well as for improving the communication skills of local workers, for example offering courses to be taken during their weeks off or after work hours on the site. • Involve the School of Minerals and Petroleum in the training and recruitment program. • Discuss with the School of Minerals and Petroleum and ARTEK the possibility of adapting the curricula of the basic training courses and the development of advanced courses in order to match the needs of ISUA project and other highly mechanised mining operations, and thereby improve employment prospects of new graduates. • Discuss with the School of Minerals and Petroleum and ARTEK, INULI and Navigational School the possibility of allocating a number of job positions as apprenticeship positions for advanced students. • Development of an on the job-training program for staff on specific duties, safety, etc. • Dedicated, locally based Greenlandic speaking Human Resources Manager to develop and follow up on recruitment, training and career development of the staff. • Regular evaluation of progress on the training programs and performance of apprentices and local and international staff, in order to continuously optimize the internal training programs and provide feedback to educational institutions.

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• Early development of a reinsertion program for workers after mine closure.

6.3 Public Services and development plans

Potential impacts of the project during construction and operation on public services and development plans will be evaluated at Municipal and national level.

The following key issues related to the project were identified by the Committee of Infrastructure and Environment of Kommuneqarfik Sermersooq in October 2011:

• Housing requirements in Nuuk for workers that will be employed during the construction and operation phases. • The committee wishes to be able to support local business during the process • The committee considers it crucial to match the expectations of the municipality with those of local industry. The project will also pose a challenge in relation to requirements to handling of construction projects as the administrative procedures normally take an estimated 8 months to complete. • The committee also wishes to be aware of and be prepared for the environmental impacts and risks associated with the project.

The overall experience of a recent oil project is that the market and the city were not properly prepared for the project and that the project led to unforeseen impacts, due to a lack of direct cooperation between the project and the Municipality. It is expected that a better cooperation will be in place with London Mining’s ISUA project.

National development plans known as of December 2011 include: • Vision for the strategy of regional development (RUS) developed by the Greenlandic Government Naalakkersuisut and KANUKOKA (Naalakkersuisut, 2011). The main areas for focus are: o Public schooling – increased focus on language and IT o An easier transition between public school and the vocational institutions o A collective plan for vocational educations o A spacious business life with technical and physical mobility o Establishment of business clusters (raw material extraction, promotion of trade, tourism) o Modernization of the coastal fishing industry o Increased sale of Greenlandic foods o Working on developing a national construction strategy o Development conferences

• Recommendations by the Transport commission (Transportkommissionen, 2011) set up by Naalakkersuisut (Greenland Government). The recommendations that could affect the project and Sermersooq include: o Nuuk airport: to move the existing international airport in Kangerlussuaq to Nuuk area and to expand to 2200 meters of runway o Move the container dock in Nuuk to a new location with a larger capacity. o To award dispensations to the Royal Arctic Line’s monopoly on the transportation of goods by water especially for mining projects o Streamlining the operations of the national airport operations company Mittarfeqarfiit

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However, the ISUA project can not be responsible for implementing of the transport commission’s recommendations. The recommendations will be processed in the parliament and the political system in which decisions of whether to follow or to abort the individual recommendations and whether to finance the projects will be made.

6.3.1 Impacts on public services and development plans during construction

Public services that are expected to be influenced by the project during the construction phase include: • Pressure on administration of construction permits for the construction phase • Increase work load at customs and taxation office • Increased work load of immigration authorities and inspectors in Greenland • Increased work for the Police of Greenland, including control of the international workforce travelling in and out of Greenland, other tasks such as investigations and rescue activities etc. • Moderate increase in demand for health services • Increased air traffic in Nuuk Airport • Maritime freight traffic and activities in the ports of Nuuk, both directly and indirectly related to the project • Solid Wastes treatment

Municipal Permits Normal administrative procedures for handling construction permits in Kommuneqarfik Sermersooq normally demands a minimum of 8 months. Permitting for ISUA construction works is issued from the BMP and normally takes 6 month.

Customs As most of the freight will be directly to ISUA´s port facilities, it is expected that new positions will be created in the customs office to service the project on site. As the project will generate income from customs and taxes that will finance the extra pressure, the impact is considered negligible.

Working and resident permits Working permits for foreign workers are normally issued by the Danish Immigration Service. Since December 13 2011, a special procedure has been established for a quick and flexible processing of working permits for off-shore oil exploration and mining industries in general in Greenland. Work and resident permits related to the mining industry are to be sent for consultation to Greenland Authorities. The processing of more than thousand working permits for the construction period is expected to be the biggest pressure on public services during construction, together with the processing of construction permits.

Tasks for the Police of Greenland In relation to the project, increased tasks for the Police are expected both with regard to the activities directly related to the project and in relation to custom control of the international workforce when travelling in and out of Greenland.

Furthermore, the Police acts as a rescue authority in Greenland both on land and in the sea. The increased activity on sea will increase the risk for increased rescue activities. In addition, the Police will have the role as the coordinator if any accident/incident occurs at the site such as fire.

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Use of port and docks in Nuuk The port of Nuuk will not be used for unloading cargo, equipment and materials for the Isua Project. All cargo ships will go to the ISUA port. As a result, no impacts are expected in terms of loading/unloading equipment at the port of Nuuk; no storage requirements for containers; no requirements for lay down areas at the port of Nuuk.

The use of the port of Nuuk will only be for allowing workers to transit to Nuuk to and from the Isua site to the Nuuk aiport. During the construction period, the workers will be transported by ferries from Nuuk to the Isua site. For the purpose of their rotation to home, construction workers will transit in Nuuk to get to the airport. The operation of transporting workers will be managed by the Mine personnel. For instance, small groups of workers will arrive at the port of Nuuk under the supervision of a mine safety officer; once at the port of Nuuk, the small group of workers will board a bus to go to the airport, as per the scheduling of the chartered flights. As a general rule, the operation of transporting workers on rotation will not be designed on the basis of workers spending the night in Nuuk. The operation of transiting construction workers through Nuuk for the purpose of their rotation to home will be managed under strict control with regards to weather forecasts and scheduling. As per the standard practices in remote mine sites, the movements of personnel from the site to the airport will be overseen and supervised by mine safety officers.

Air traffic The activity at the airport in Nuuk is expected to be incremented by the traffic of planes between Nuuk and Kangarlussuaq airports, of charter helicopter and eventually with flights to and from the future ISUA airstrip during operation.

Solid Waste management The management of solid domestic wastes at the site during construction and during operation is described and specified in the Isua Environmental Impact Assessment (EIA) study (Orbicon, 2012). For the purpose of the SIA, it is noted that the domestic treatment facility in Nuuk is working at the limit of its capacity, but might potentially handle the waste generated for a short period in the early stages of construction. A state-of-the-art incinerator for domestic wastes will be installed at the project site early in the construction phase. This is part of the ISUA project design for the management of solid wastes during both phases, construction and operation.

Development plans are unlike to be influenced by the constructions activities of the project.

Health service For the pressure on the public health service see section 6.5.3 Health Service.

6.3.2 Impacts on public services and development plans during operations

The ISUA project assumes the responsibility and cost of the construction and operation of all infrastructures directly needed for the project: road, port, air strip, drainage systems, wastes disposal, power, etc. Local plans and investment budgets are therefore not directly affected by the project at that level.

Nevertheless, the needs of the project will have implications on key aspects of the local provision of services and development in Kommuneqarfik Sermersooq, in particular on:

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• Housing • Air traffic in Nuuk Airport • Maritime freight traffic, both directly and indirectly related to the project • Treatment of solid domestic and hazardous waste

Furthermore, there will be an increase in the workload for the customs and taxation office, immigration authorities and inspectors in Greenland as well as in the workload for the Police.

At the national level, the biggest pressure is the increased focus on vocational education targeted to the mining sector. This aspect was addressed in the previous sections.

Housing In the current situation, a lack of available housing may be the second limitation to the expected local recruitment targets (following adequate training). This is particularly relevant for newly graduated Greenlanders that may wish to return to Greenland due to working opportunities that are directly or indirectly related to the project.

Nuuk is experiencing accommodation difficulties as a shortage of public housing means that there are waiting lists of up to 15 years for rental apartments. Even if the construction activities are high in Nuuk the capacity keeps stagnating. The part of the population that can afford to purchase the newly built houses, while public housing facilities are poorly maintained and most that were built in the 1970’s are ready to be demolished and therefore the waiting list does not necessarily diminish.

Nevertheless, quantitative estimate of the need for housing from the ISUA project is an exercise that must be performed conservatively, as experienced from the case study of the Alcoa Project in Iceland, which showed that an expected benefit can turn into a financial crisis for the municipality if the figures are overestimated and decisions are made too early in the process. According to a study on the social effects of the aluminium project development in East Iceland published in 2010, 135m 2 apartments were built, but only apartments that were 70-80m 2 were needed according to estimations. Result: 218 flats were empty in October 2009. Similarly, during 2001-2004, Nanortalik Municipality in Greenland built several houses specifically targeted for staff for Nalunaq Gold Mine, yet most of them stood empty years later because staff did not move into Nanortalik (Personal Communication, Nielsen 2011).

Air and maritime freight traffic during operation The activity at the airport in Nuuk is expected to be incremented by the traffic of flights between Nuuk and Kangerlussuaq airports, of charter helicopters and flights to and from ISUA during operation, as well as due to the chartered flights that will be used for transporting foreign workers to Iceland or Canada or other international airports for their rotation home. In addition, it is expected that approximately 25 persons related to the project (consultants, providers, etc.) will be in transit in Nuuk for a couple of days, every month.

Most of the marine freight traffic related to the project will be handled directly the ISUA port facilities

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During operation, the port of Nuuk will not be used for unloading cargo, equipment and materials for the Isua Project. All cargo ships will go to the ISUA port. As a result, no impacts are expected in terms of loading/unloading equipment at the port of Nuuk; no storage requirements for containers; no requirements for lay down areas at the port of Nuuk. During operation, the port of Nuuk will only serve to allow for mine personnel to get off the boat and take a chartered bus from the port to the airport.

Treatment of hazardous and special fractions of wastes during operation All the domestic and combustible wastes from the ISUA will be incinerated on site, in the dedicated incineration plant planned at the port area. Some of the hazardous wastes and other fractions not suitable for incineration will need to be treated according to Greenlandic regulations and existing services. This puts pressure on the current hazardous wastes management in Greenland, as the hazardous wastes generated at the ISUA project will, according to the current agreements, be sent to the transfer station in Nuuk before further shipment to Denmark.

Health service For the pressure on the public health service see section 6.5.3 Health Service.

6.3.3 Summary of impacts on public services and development plans during operation

All the areas where the ISUA project could create additional strain on the development plans: housing, air traffic, maritime freight, treatment of hazardous wastes and focus on improvement of vocational education and employability of local workers have been identified by the Greenland Government and Kommuneqarfik Sermersooq as areas needing mid-term solutions, independent of the project.

The imminent realization of the ISUA project may have an influence on the prioritizing of actions and timing of the implementation of some specific tasks of the strategy.

Housing may be a major challenge for the project and the targets of local employment. The exercise of estimating the housing needs related to the project needs to be done carefully and in coordination with the Municipality.

Public services that will experience increased pressure from the project during prior to the commencement of the construction phase include:

• Pressure on administration of construction permits for the construction phase • Increase work load at customs and taxation office • Increased work load for immigration authorities and officers

Public services that are likely to experience increased demands during operations include the customs and taxation office, as well as health care services and day care services, in the event that the workers move to Nuuk with their families. The impact on these services is not expected to be significant for an immigration of around 50 families -100 singles.

The impact assessment on development plans and public services will be further updated once the information on the Government and Municipality plans for waste treatment and use of the port in Nuuk are known, as these were two of the major concerns of the Committee on Infrastructure and Environment of Kommuneqarfik Sermersooq.

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Table 6-16 shows the anticipated impacts on public services and development plans.

Anticipated overall impacts Impact category – Construction Before mitigation After mitigation Public services and development plans -M -L Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Public services and development plans -M -L Table 6-16 Anticipated impacts on public services and development plans from construction and operation.

Recommendations related to Impacts on Public Services and Development Plans

Establish cooperation with Kommuneqarfik Sermersooq as soon as possible, in order to clarify the following aspects:

• Estimation of housing demand in Nuuk for the project during construction and operation. • Alternative plans for short term and long term housing for staff and their families in Nuuk. • Plan for use of port facilities and dock space in the port of Nuuk. • Avoid in all cases municipal housing and promote use of private rental; it must be noted that all mine personnel will be housed at the mine permanent accommodations. • Make agreements about excess domestic solid wastes that need to be treated in Nuuk with the municipality at an early stage. • For short term accommodation in Nuuk consider a framework contract with the local hotels and temporary rented accommodation facilities where expected services and approximated time plan will be specified.

6.4 Social Aspects

The following social aspects have been identified as possible key social issues of the ISUA Project:

• Changes in demography and population • Social conflicts, potentially associated with a foreign workforce • Vulnerable groups

One of the major positive impacts of the ISUA project could be a decrease in emigration rates and potentially a return of emigrants to Greenland, leading to a positive net migration, due to the improved employment opportunities created by the project.

For many years net migration in Greenland has been negative. The former Greenlandic Minister of Finance, Palle Christensen, has declared the steady exodus of manpower from the country as the biggest hurdle facing Greenland’s ongoing quest for independence.

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On the other hand, analysis of the debate in the media during the last 14 months as well as concerns expressed during the public information meetings seem to indicate that the potential arrival of foreign workers during the construction period, and its associated social conflicts is perceived as the biggest concern by the public opinion.

6.4.1 Demography and population changes during construction

In the range of 1000-3000 foreign workers are expected to be involved in the construction phase of the ISUA project for a period of 3 years. The vast majority, if not all, are expected to be men and no followers (spouse, children, etc.) will be housed at the accommodation facilities at the construction site. The Isua construction site is a remote site, located 150 km from the capital town of Nuuk, with no expected public transportation means to access the site.

Employees will have a specific working license for the period of work and will reside in the construction accommodation at the site. In the actual plans, the workers will have a limited but not prohibited access to Nuuk during some days off.

It is expected that that some workers may want to visit Nuuk on some occasions and that a small percentage of the staff at the mine may go for more visits in Nuuk during their stay. However, potential occasional visits of the workers to Nuuk will be carefully planned, supervised by the construction management and safety personnel. This is because only the construction management can provide transport to and from the construction site. Furthermore, the construction management will also have to manage the movements of the workers due to the high risk of not getting back on time for work due to weather conditions. Free time facilities will be provided on site. This situation needs to be monitored to better understand behavioral patterns, evaluate, predict and prevent eventual social risks

Immigration was one of the areas that were transferred to the self-governing Greenlandic government in 2009. Legislation regarding work permits for non-Scandinavian (and in particular non-EU citizens) remains unclear nonetheless, as the responsibility of issuing residency permits still rests with the Danish immigration authorities following a hearing by Greenland’s self-rule government (Udlændingeservice 2011). The new Large Scale Projects Act provides the opportunity for construction of large scale projects as the ISUA project of using both local and international contractors, and thus there will be a need for flexible processing of applications from foreign workers. However, the details are still being worked on by the Greenlandic government, the Applications for this type of work permit will be sent to Greenland for a consultation process by the self- rule government (Udlændingeservice, December 13, 2011). Furthermore, Greenland has expressed a desire to establish immigration laws that are less restrictive than the Danish ones, stating that given the remote nature of the country and its small population, foreigners wishing to reside there should be welcomed. This statement must be balanced against Greenland’s goal of reducing unemployment rates, which aims to give preference to Greenlandic residents when job possibilities arise. In fact, a dispensation to hire foreign staff is required if qualified workers can be found in Greenland.

In principle, the workers terminate their working permits as soon as their contract is terminated, and are therefore not allowed to stay in Greenland. This ignores the possibility that Greenlandic residents could develop relationships with the workers, which might eventually lead to marriage, thus allowing the foreign workers to stay in Greenland. The possibility of some workers staying in Greenland after the conclusion of the contract period by involving in other jobs or business opportunities should not be excluded.

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The demographic change during construction is expected to be significant, local, temporary, and confined mainly to the construction site. Monitoring of workers actually visiting Nuuk during their days off and the percentage of workers that extend their stay in Greenland beyond the construction period needs to be monitored in coordination with the Greenland authorities to fully assess the real impact.

6.4.2 Demographic changes during operation

One of the most positive impacts of the ISUA project is expected to be the reduction in the negative net migration rates of Greenlanders, as a result of increased job and business opportunities and general improvement on quality of life and services in Greenland, particularly Nuuk.

Each year young people leave Greenland to study in Denmark, at present a mere half returns home at the conclusion of their education. Employment inside Greenland remains the biggest hurdle to repatriation. An additional barrier is housing, childcare and health services (Greenlandic Students Association in Denmark, Avalak).

The mobility study made by Greenland Statistic in 2009, included a study of people from Greenland living in Denmark. In total a number of 18,563 people from Greenland are living in Denmark, of which 3100 are first generation (born in Greenland with minimum one parent also born in Greenland), between 20-49 years old and able to enter the Greenlandic workforce. They are all either employed, under education or searching for jobs in Denmark. The majority has a vocational or higher education (e.g. health care, technical education, craftsman, commerce and service) from Denmark.

The survey shows multiple reasons for people migrating from Greenland to Denmark. Whereas the majority states family relations as the main reasons for moving to Denmark, employment and family are the main reasons for staying (The North Atlantic Group in the Danish Parliament, 2011). Many have come to Denmark as children with their parents and have lived in Denmark for more than 15 years. 19% of the women have moved to Denmark with their partner. 27% have moved to Denmark because of education. Very few have moved because of employment. It is unlikely those people that have moved to Denmark for family reasons will be attracted to Greenland for employment opportunities.

The 30% who contemplate (approx. 1000 people) returning to Greenland are primarily young people who have taken an education in Denmark but have not yet established a family. A majority wish to move back to Nuuk although many of them have come from smaller cities in Greenland.

In the case of Nuuk, two aspects are considered in the impact evaluation: • The net change in population • Community impacts related to the project location in a small, homogeneous community of limited economic and human resources.

Net change in population A scenario with significant demographic changes and/or population profile could appear as an effect of the ISUA project.

Over a 15 year operation period the real mid-term demographic change will however be significant especially when both direct and indirect jobs are considered.

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From the beginning of the operation of the mine, an average number of approx. 680jobs will be created by the project. It is not expected that all job opportunities can be hired by local staff from the beginning of operation. Therefore, in the first years of operation, around 550 positions will be filled by expatriates, which are expected to progressively be reduced and replaced by more trained/qualified Greenlandic workers. It may be expected that some of these will choose to settle in Nuuk, but the majority will choose to be based in their country of origin, with a fly-in, fly-out basis for their rotation at home. This is typical of all remote mining operations.

Furthermore, it is expected that the creation of indirect jobs will be a ratio of 1.3:1 (indirect: direct jobs), that implies that the project would potentially create 210-430 indirect employment opportunities locally. It is hoped that a number of immigrants will be Greenlanders currently living in Denmark, attracted to job opportunities directly and indirectly associated with the project. According to the mobility study (Greenland statistics, 2009), the majority who considers returning to Greenland expects to settle in Nuuk. Demography and population changes at municipal and local level could therefore be considered significant.

Important aspects for the success of attracting local employment and returnees are the provision of job opportunities, internships and apprenticeships, business opportunities and housing. Lack of available housing is probably one limitation for returnees and expatriates to settle in Nuuk. Day care and school places, as well as the quality of available services will be another limiting aspect, if the workers want to bring their families.

6.4.2.1 Significance of demographic change

During consultation there was a consensus that demographic changes stemming from a scenario with 50 single workers and 20 families settling in Nuuk during operation were insignificant and would not cause major impacts. However, the risks of creating additional pressure on housing and on wages were highlighted as the main issues of concern. Furthermore, the need to address the health profile of international workers (e.g. transmittable diseases) was mentioned as significant factors in demographic change. Opportunities for competence development and business opportunities were mentioned as the main potential positive aspects.

The presentation of a second scenario with significantly higher immigration to Nuuk (100 singles and 50 families) was still perceived as creating insignificant negative impacts. On the contrary, it was seen to have a positive impact if well educated immigrants from Denmark and Greenlanders residing in Denmark moved to Greenland (Montgomery and Møller Jensen, personal communication 2011).

The immigration of highly skilled individuals would be a positive development in Nuuk, as the demand for quality education and also international schools, health services and cultural events would increase. Furthermore, it would have a positive impact that the immigration is people with competences, who can contribute in a beneficial manner to local development.

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Negative impacts from immigration were perceived to depend largely on the skills of those who immigrate. It was considered that effects of increased immigration would first be perceived with around 50-75 families and more than 100 singles. One of the most significant negative impacts related to immigration to Nuuk is the lack of housing. Accommodation shortages already present a pressing issue for residents, and increased immigration would only add to this. Furthermore, immigrants who possess economic resources and have a need for housing may place upward pressure on the prices, thus creating negative impacts, particularly for those with scarce resources.

6.4.3 Social conflict

The assessment of impacts of social conflict is based on experiences from other mining projects worldwide. There is no way to verify the assessment at this stage and no former project implementation in Greenland can give qualified input as to what could be expected. Therefore, the assessment is primarily based on an assessment of potential risks that should be given attention in order to establish effective mitigation measures.

6.4.3.1 Risks for social conflict during the construction phase.

There is a perception among Greenlandic people that there will be an invasion of international workers, especially during the construction phase of the ISUA project. This perception is strengthened as the issue of international workers has been raised on a number of projects e.g. for the Alcoa project where around 3000 Chinese workers would be expected for the construction in Maniitsoq (Article in Weekendavisen 11.11.2011).

Greenlandic experience of social conflicts related to temporary workers on development or mining projects, for example Ivittuut cryolit mine and building projects (A. Albrechtsen, D., 2010 and Greiffenberg D., 2008) include: • High number of unwanted/ unexpected pregnancies and abortions • Sale of drugs • Emigration of women, following their new partners

Moreover, international experience of social conflicts related to the importation of a large number of temporary workers in similar situations (Global Post, Nov. 5 2011; Bukali de Graça, F.L, 2002, Voice of America, Jan 21 2012) includes issues such as: • Prostitution • Trafficking of wild life products • Take-over of local business

The possible benefits and impacts from social interaction with construction workers transported by ferries through Nuuk are not assessed and discussed with local stakeholders and informants. The possible impacts are therefore assessed conservatively to be negative.

It is expected that most of construction workers’ free time will be spent on-site at the mine. However, occasionally visits could be made to Nuuk as discussed previously. The potential risk of introducing prostitution needs to be considered.

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6.4.3.2 Risks for social conflict during operation phase

Although many of the non-mining jobs which will be available for local workers do not require any specific qualifications in the area, it is expected that a minimum qualification and language skills will be expected in order to meet the requirements for employment. This may pose a risk for increased social exclusion, condemning those without any formal qualifications and language skills to either employment or jobs in other sectors. This includes moving of the most capable from the public to the private sector. As a consequence the public services might suffer due to capacity drain, until a new generation catches up in experience and capacity.

The risk of conflict and cultural conflicts between international workers and local workers employed by the project is another concern. Conflicts may arise due to differing values, opposing interests, poor communication or personal problems and language barriers. Awareness of cultural differences and recognizing where cultural differences are at work is the first step toward understanding each other and establishing a positive working environment. This is especially important considering the rotation schemes and the time that workers spend together at work and at the permanent accommodations. An increase in the number of pregnancies and abortions (which is already high in Greenland), as well as exchanges of sexual favors for presents between wealthy staff and young local women are frequent impacts related to mining projects and the risk of this to happen in Nuuk should not be ignored.

6.4.4 Vulnerable groups

During consultation conducted for the baseline four main vulnerable groups in the Greenlandic society were identified: • Children, particularly in families with addiction problems • Unemployed, uneducated young males • Low-income workers (low income SIK members) • Young families with small children

No direct impacts on any vulnerable group are expected. However, indirect negative impacts may occur in regards to children in vulnerable families, should the most well- functioning parent takes employment at the ISUA project and be absent from day to day life during the 3 weeks at site as per rotation schemes.

Another impact on the vulnerable groups is related to the project’s ability to attract the most capable workers. It is expected that the mobility of most capable workers to the new job opportunities would cause vulnerable groups to be excluded from the development and not be able to benefit from the new opportunities created by the project (e.g. salary boost, competence development) and thereby experience a relative decline in their position compared to their fellow citizens.

6.4.5 Resettlement impact

Not relevant as there are no resettlements involved in the project and therefore no impact.

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6.4.6 Assessment of potential criminality at the mining site

The Isua Mine will be operated and managed as a world-class mining operation. As such, the personnel at the site will adhere to strict rules of behavior and code of ethics, and the personnel will also be supported by continuous training and programs covering the many aspects of the life at the site.

Based on standard practices in Canadian mining operations, the management of personnel at the Isua mine during operation will include the following key principles, measures and actions:

1. Alcohol and drugs will be strictly prohibited at the mining site. A zero-tolerance policy will be enforced regarding the possession and use of alcohols and drugs at the site. As per standard practices in Canadian mining operations, all luggage of mine employees returning to site after their rotation, and including visitors and contractors, will be inspected for liquids and drugs according to similar methods as in airports.

2. Possession and use of Firearms, including hunting guns and hunting knives of any significant size, will be strictly prohibited at the mining site. Similarly to alcohol and drugs, a zero-tolerance policy will be enforced in this respect. Luggage of employees, visitors and contractors arriving to site will be inspected according to similar methods as in airports.

3. The Isua mine will be a remote site, some 150km away from the Capital city of Nuuk, with no public roads, and no public access to the Isua port. Furthermore, the personnel organization of Isua will include security guards to control access to the site, to perform routine surveillance of the facilities, and to supervise the arrival and departure of employees and visitors leaving and returning to the site. In addition to the security guards, the key areas of the site and key facilities will be under video surveillance reporting to the Health & Safety Center.

4. A team of Health & Safety officers will insure continuous training for new employees and visitors in the areas of Health & Safety, fire alarms, evacuation, contacts and reporting in case of incidents, rules and behavior at the site, code of ethics, circulation within the site and other areas.

All mine employees will have to enroll in information sessions about the code of ethics which will govern the day-to-day life at the mine and to which all employees shall adhere as a condition of employment. In particular, codes of ethics in mining operations do not tolerate any forms of physical and verbal violence in the relations between employees at the mine. These information sessions will be in addition to mandatory trainings in the areas of Health & Safety, Environmental protection, Emergency plans, etc. The Isua mine organization will also support its employees through cultural and social trainings and activities aimed at sustaining harmony between staff from different origins during their work at the mine.

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Based on the above organization and management practices, the risks of criminality at mining sites have been shown to be very low in Canadian mining operations and it is expected to be very low as well during the operation of the Isua mine. In terms of Social Impacts to the local community, there are very low risks of criminality at the mining site and therefore very low impact or no impact.

Since the Police of Greenland has raised the potential crime as a concern, the overall assessment of the potential risks is assessed to be low. Therefore, both mitigation measures and development of indicators for monitoring are to be agreed with the Police of Greenland.

6.4.7 Summary of impacts on social aspects

One of the positive social impact of the ISUA project is expected to be a decrease in emigration rates and the potential return of a number of newly graduated students to Greenland, due to improved employment opportunities created by the project. During project operation, the potential immigration of highly skilled migrants and their families, both Greenlanders and foreigners alike are perceived as significant, positive and medium to long term. Nevertheless, impacts on the price and availability of housing are perceived as a significant risk and the need to address the health profile of international workers was mentioned as an important factor in social risks associated with immigration, both during construction and operation.

Analysis of the debate in the media during the last 14 months (Sermitsiaq 30 August 2011; 19 Jan 2012; 25 Nov 2011 and Nuuk TV 25 Jan 2012) as well as concerns expressed during the public information meetings seems to indicate that potential international migrant workforce during the construction period, and its associated risk of social conflicts was perceived as a major concern by the public opinion. This impact is evaluated as negative medium, temporary and local.

The impacts on social aspects during construction are considered to be negative low during construction. The assessment is primarily based on the potential risks of the extensive number of international male workers during the construction phase and the prevailing perception of social dumping in the use of international workers among the local people, and the fear that workers will remain in Greenland for other business, after the construction is over. Mitigation to this potential impacts factors include the distance and limited access of the workers camp from Nuuk and Kapisillit. Furthermore, it shall be noted that the new Large Scale Projects Act has provide a legal framework for the management and control of temporary international workforces.

The impact on social aspects during operation is considered to vary from positive low to negative medium. Again the assessment is based on available information and consultation. With effective measures the impact on social aspects during operation may swiftly change to be primarily positive.

Proposed mitigation measures to impacts on social aspects

• Monitor the leisure activities of the mine’s employees, and their patterns of travel to Nuuk, as well as changes in their behaviour or free time activities. • Monitor the international employees’ contacts with the local community so as to avoid various social risks, including prostitution by providing sustainable information programs and cultural training.

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• Ensure that the existing design of permanent accommodation complexes at the mine site have adequate recreational facilities on-site in order to avoid boredom and increase the quality of life at the camp such as fitness facilities, libraries, internet, television/film room etc. • Engage and cooperate with Nuuk municipality in order to develop a plan for sustainable housing, so that if families of mine employees decide to settle in Nuuk they do not contribute to the current housing shortage in Greenland. • Support infrastructure and local development plans to improve the quality of services for employees who bring their families to Greenland, especially in the case of Greenlanders who are returning. • Communicate clearly about the origin of the workers and their working conditions in order to alleviate fears of wage-dumping. • Ensure that employees undergo regular health-checks at the camp (as a minimum for STIs) and also prior to commencing work. • Establish introductory sessions for all workers on intercultural understanding and provide an overview on Greenlandic culture for international workers as part of their introduction process. • Set up a program for intercultural understanding, to be provided to all the workforce and contractors. The program could consist on, for example: i) a course to enhance the understanding of Greenlandic culture and communications codes, mandatory to all international staff, contractors and subcontractors to operate in Greenland; ii) introductory course on rules and expectations related to behavior and communication during working hours; including explanation on why the rules are like that iii) workforce workshops for elaboration of social rules during free time activities and common relaxation areas, etc. iv) regular events for encouraging intercultural dialogue and understanding. The program should include monitoring of internal communication or behavioral conflicts and good experiences, in order to ensure regular feedback and improvement of the program.

Table 6-17 shows the anticipated impacts on social aspects (demographic changes, social conflict, vulnerable groups & criminality).

Anticipated overall impacts Impact category - Construction Before mitigation After mitigation Social Aspects Impact on demographic changes -L -L Risk of social conflict -M -L Impact on vulnerable groups Not significant Criminality at site -L -L Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Social Aspects No mitigation required/proposed +M measures to Impact on demographic changes maximize benefits Impact on social conflict -M -L Impact on vulnerable groups -L -L Criminality at site -L -L Table 6-17 Anticipated impacts on social aspects from construction and operation.

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Recommended measures related to social conflicts during construction :

• Monitoring of the demographic changes taking place in Nuuk, e.g. the number and profile of international staff locating in Nuuk , number of Greenlandic immigrants, both workers and their families. • Implementation of a Grievance Mechanism for the project, according to IMF standards and best practices of the mining industry, to be operational from beginning of the construction phase. Citizens should be able to express verbal or written complaints in Greenlandic, Danish or English related to grievances caused by or related to project activities, the project staff, its consultants or contractors. Procedures for reporting the complaints should be widely communicated. A Grievance mechanism will help in the identification of social conflicts that were not predicted or expected, as well as prevent conflicts from escalating by providing speedy and acceptable resolutions. • Monitoring of workers actually visiting Nuuk during their days off and the percentage of workers that extend their stay in Greenland beyond the construction period needs to be monitored in coordination with the Greenland authorities to fully assess the real impact. • It is recommended that measures are taken to prevent risks stemming from the high number of international workers during construction, including facilitation of access to Nuuk, awareness raising activities related to sexual behaviour and understanding of the Greenlandic culture and way of life. • It is not expected that a significant number of construction workers will choose to spend days in Nuuk unless forced to because of bad weather or technical problems with air or boat transport. Nevertheless, if this proves otherwise, measures should be taken to regulate the amount of workers in town simultaneously. However, it is also expected that workers will want to have some visit of Nuuk on some occasions during their stay, which would translate into local spending in restaurants, shops and tours services. • Awareness raising and team building activities should be planned at the camp with the intention of creating intercultural understanding and respect among workers of different nationalities including providing international staff with a basic understanding of Greenlandic culture, etiquette and basic vocabulary.

Recommended measures related to social conflicts during operation:

• Monitoring of the demographic changes taking place in Nuuk, e.g. the number and profile of international staff locating in Nuuk, number of Greenlandic immigrants, both workers and their families. • Evaluation and if necessary improvement of the Grievance Mechanism for the operation phase of the project, based on lessons learned from the construction phase. • It is recommended that measures are taken to prevent risks stemming from the high number of international workers during operation, including facilitation of access to Nuuk, awareness raising activities related to sexual behaviour and understanding of the Greenlandic culture and way of life. • It is not expected that a significant amount of workers will spend time in Nuuk during accidental layovers or sparetime. If this proves otherwise measures should be taken to regulate the amount of workers in town simultaneously. • Monitoring of workers actually visiting Nuuk during their days off and the percentage of workers that extend their stay in Greenland beyond the construction period needs to be monitored in coordination with the Greenland authorities to fully assess the real impact. • Bi-annual review of grievances reported and solutions provided. Number of grievances received and %of them satisfactory resolved reported in Sustainability annual reports.

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• Number of workers that extend their stay in Greenland beyond the contract period to be monitored in coordination with the Greenland authorities to fully assess the real impact. • Annually revisit and monitor social indicators related to population numbers and profile, unemployment, cost of living, pressure on housing, perception of well-being, unwanted pregnancies, teenage pregnancies, STDs and HIV level. This monitoring information will allow an early “alarm bell” if demographic changes and social problems are larger than or differ from predictions. • Coordinate with local authorities the selection and monitoring of indicators of social wellbeing for the vulnerable groups, as well as support initiatives and policies to protect and support vulnerable children and their families. • Awareness raising and team building activities should be planned at the camp with the intention of creating intercultural understanding and respect among workers of different nationalities including providing international staff with a basic understanding of Greenlandic culture and language. This should be repeated twice a year to ensure that new staff is integrated and understanding reinforced. • Contracts with suppliers should reflect measures for the prevention of risks for social conflict • Free or subsidised alcohol counselling for the local workers or their families can play an important role both in the retention of local workforce and prevention of social problems related to an increase in substance abuse triggered by changes in lifestyle and family situation. These efforts can be coordinated with public health programmes (PAARISA) and specialised local organisations • It is recommended to contribute to support national early pregnancy initiatives from PAARISA and health authorities.

6.5 Health

6.5.1 Occupational health and risk of accidents

6.5.1.1 Occupational health and Risks during construction

The risk of accidents during construction is mostly related to operation of heavy machinery, use of explosives and harsh weather conditions. Adverse weather conditions can lead to fatal air transport accidents.

6.5.1.2 Occupational health and Risks during operation

Hunters and fishermen have highlighted the risk of accidents involving vessels during the ore loading and transportation, due to the wind and ice conditions, and the navigational challenges of the fjord and port location. These inputs were followed by recommendation of having experienced Greenlandic navigators with a thorough knowledge of these waters, in order to direct/support the traffic of vessels through the fjord and communicating with the small fishing vessels to avoid accidents.

Implementation of the proposed Health and Safety Plans and their corresponding training, procedures and monitoring for all workers, contractors and visitors will certainly reduce the likelihood and severity of accidents in the mining and processing operations.

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6.5.2 Summary of Occupational Health, Hygiene & Safety (Construction & Operations)

In order to maintain an adequate HSE standard on the site from the construction through to operations, the Project Management Team will ensure a good health and safety plan. A detailed HSE plan will also help in ensuring that the project is well managed to avoid/minimize unexpected costs and problems. The ultimate objective of the HSE plan is to ensure that the project is safe to build, operate, maintain and deliver good value.

6.5.2.1 Occupational Health, Hygiene and Safety

In the Isua working environment, employees will be required to be protected or trained when coming in contact with the following risks:

• Extreme weather conditions: all personnel during construction and operations will be exposed to very low temperatures, high winds and white-out conditions. The workers may risk hypothermia, frost bite, injury due to high winds and dangerously reduced visibility while circulating on site. • Hazardous substances: chemicals and other substances which can harm people’s health, causing injury, illness or disease. Health effects may be immediate and short term - such as irritation to the skin or eyes, or corrosive burns - or long term, such as tumours, cancers, or damage to organs. • Dangerous goods: classified on the basis of immediate physical or chemical effects, such as fire, explosion, corrosion and poisoning that affects property, the environment or people. • Explosives: includes dynamite, black blasting powder, pellet powder, blasting caps, electric blasting caps and detonating fuse. Explosives are a chemical compound or mixture, when exploded by action of heat, impact, gives large volume of gases in a very short time at high temperature & pressure. • Excessive noise: unwanted sound levels which may damage a person's hearing. Noise at the workplace is a major cause of hearing loss. It contributes to social isolation and reduced quality of life, increased absenteeism, worker turnover and lowered work performance. It also contributes to workplace injuries and accidents. • Medical drugs: use of medical drugs shall follow local and international legislation governing the procurement, storage, use, disposal and record keeping of drugs. • Poisons: use of poisons shall follow local and international legislation governing the procurement, storage, use, disposal and record keeping of poisons.

Hazardous Materials Assessments Assessment of hazardous materials is the first step in determining whether any toxic materials are present in the workplace.

The Project Management Team will ensure that their warehouse and that of the contractors keep an inventory and a detailed list of hazardous materials as per WHMIS (Workplace Hazardous Materials Information System) regulation. In practical terms, this requirement will be fulfilled under the ISUA project Environmental Management Plan (EMP).

Furthermore all parties required to store, handle and use hazardous chemicals are to have current material safety data sheets (MSDS's) and provide the necessary training for personnel handling, using and disposing of such materials. The following requirements and products shall be deemed necessary to mitigate any incident involving the accidental release or spill of products that may endanger the environment.

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These include but not limited to: • Environmental Management & Emergency Plan • Environmental specialists • Pre-Task Planning • Training of personnel • Variety of Spill Kits • Recycling

In addition an employer manual will be prepared and be available at site as requested by the authorities.

Workers’ Obligations Each worker must comply with the H&S requirements provided during the training, in particular the followings:: • Use equipment, tools and substances connected to their activity of work correctly; • Refrain from disconnecting, changing or removing arbitrarily fitted safety devices; • Immediately inform the employer of any work situation which represents a serious and immediate danger.

Employers’ Obligations According to the Greenlandic Act on Occupational, health and Safety the employers are required to ensure all necessary personal protective equipment.

Safety Risk Identification In order to ensure the safety of all project personnel and property, related to the Isua project, a risk identification process will be required to identify the exposure to unsafe conditions, ultimately during phases of construction and, towards pre-commissioning, commissioning and the start-up to operational status.

The risk identification process will be approached in a manner, as to ensure that all significant activities, within the project have been identified and all the risks flowing from pre-commissioning to operational activities are defined.

The following risks are identified, but not limited to: • Mechanical systems; • Electrical & instrumentation systems; • Fire fighting systems; • Inclusion of chemical & additives into systems; • Working in extreme climatic and meteorological conditions; • Moving and rolling equipment

6.5.2.2 Safety Management

An Occupational Health and Safety Management System (OHSMS), promotes a safe and healthy working environment.

To achieve a focused and well balanced safety management system a number of systems and procedures shall be drafted and implemented by the EPCM Contractor for construction and London Mining for operations to ensure all project personnel acknowledge, understand and are competent in their designated roles.

The following will be established, but not limited to:

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• Boundary isolation plan: this plan identifies systems and processes that are required to be isolated or restricted from other areas, by means of barricading the surroundings and locking and isolating the system to unauthorised personnel. • Transportation of dangerous goods: is a detailed synopsis of the hazardous chemicals required for the project, the route from the supplier to the storage area and the transportation and offloading of the hazardous chemical into tank or vessel. • Livening-up notices: is a notice of the intent to power up or start systems with electrical power, steam, water, etc. • Personnel training and competence: is required prior to inception into any specialised form of appointment

Operations Risk Management Operations Risk Management qualitatively and quantitatively assesses the variety of risks that will be faced by the personnel, through all phases of project implementation (construction through to production). It will identify and mitigate the risks in each of the seven key areas, thus providing a safe and sustainable work environment.

• Safety systems and processes; • Electrical safety; • Fire and explosion safety; • Distribution safety; • Environmental stewardship; • Product stewardship; • Occupational health and industrial hygiene.

Process Safety Management Process Safety Management (or PSM) is the application of management systems and controls (programs, procedures, audits, evaluations) to a manufacturing or chemical process in a way that process hazards are identified, understood, and controlled, so that process-related injuries and incidents are prevented.

6.5.2.3 Health and Safety in Design and Engineering

The Project Management Team will have implemented safety by design into all aspects of construction and operation during the design phase. Safety by design means the process of considering construction and operations site safety and health in the design of a project, ultimately designing for safe constructability and operation.

Therefore, addressing occupational health and safety needs in the design process will, to some extent, prevent or minimize the work-related hazards and risks associated with the construction, manufacture, use, maintenance, and disposal of facilities, materials, and equipment.

As and when required during the post construction and pre-operational phase, personnel shall be required to access, ascend, and enter into various plant areas that may put the individual or group in an immediately dangerous to life and health (IDLH) situation.

The benefits of safety by design would include but not limited to:

• Reduced site hazards; • Increased productivity; • Fewer delays as a result of accidents during construction;

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Safety Engineering Process To ensure safe constructability and operation the Project Management Team engineers will provide the followings items in the implementation of the project. This shall be achieved by:

• Developing and implementing effective system safety program plans in accordance with operational risk and process safety management protocols. • Providing system safety program management support to the operations team. • Conducting System Safety Hazard Analyses of Systems/subsystems designs, facilities, equipment, manufacturing processes, and operational procedures, to include: • Preliminary Hazard Analysis; • Subsystem Hazard Analysis; • System Hazard Analysis; • Operating and Support Hazard Analysis; • Hazard and Operability Studies; • Fault Tree Analysis; • Failure Modes and Effects Analysis; • Root Cause Analysis.

Project engineers will, from time to time, perform safety assessments of facilities, equipment, processes and system designs and procedures to assure compliance with applicable project, local and international safety codes/standards. Develop engineering design solutions and/or operational procedures to eliminate or control identified hazards noted in the field during field safety assessment.

6.5.2.4 Construction OHHS Strategy

With respect to health and safety requirements, planning is an essential function in the successful management of a project right from construction inception to the operational phase.

The EPCM Contractor will assist with issues related to health and safety during all phases of implementation; this shall be accomplished by:

• HSE Coordination and Interface meetings between the various groups. • Effective field supervision by Senior Management. • Interaction with workers and incentive benefits for safe work. • Sharing of information between construction and commissioning personnel. • Training of personnel prior to the introduction of live hazards. • Signage and identification of construction and operational areas.

6.5.2.5 Operations OHHS Strategy

London Mining’s operations strategy will include the important aspects for environmental protection, safety and health protection, from design through to production including:

• Identification of fundamental risks before starting planning • Identification of hazards associated with plant, sub systems and processes • Inspection of the site from the aspect of safety • Review and approval of the safety and environmental protection practices to be adopted during operations • Evaluation of the plans for consistency with regard to safety • Use of the HAZOP method (Hazard and Operability Study) subsequent to start-up.

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• Check for complete implementation of the safety and environmental protection concepts before the plant starts operations

In order to be considered working safely in an operational environment, a number of requirements need to be implemented and established; these include but are not limited to:

• Plant Specific Induction: is required prior to entering plant specific area that has different access requirements and controls. • Identification of restricted areas: this is managed through permanent signs depicting who may enter, what hazards are present and what protective equipment is required. • Permanent Signage: what personnel protective equipment is required prior to entry into the plant or a work area. • Emergency Equipment: throughout the plant site a number of meeting points, muster points, wind socks and sirens will be required to ensure safety of personnel in the event of an incident.

6.5.2.6 Security and Access

Security and access control is an important aspect of any establishment; therefore, a security plan will be formulated based on the best practices (health & safety) for the project.

The Project Management Team along with the appointed security specialist will be responsible for the development and preparation of guidelines, security plans, access control and crisis management during operations.

It is of vital importance that the security and access control into and out of an operational area is managed to the strictest of conditions to ensure the safety of project personnel and protection of assets.

An effective operational security program shall include safety awareness, environmental management, hiring and screening procedures, emergency and crisis planning and response, shipping and receiving, etc.

This will be a team-based operations security risk assessment, eliciting local, departmental and Project Management, understanding and support by involving key staff in the process.

Operation security assessments should consider all sorts of security-related harm that could occur including sabotage, arson, theft and pilferage, vandalism, trespassing, workplace violence, activist disruption, contamination, etc.

6.5.2.7 Health Management

General Health Management is provided to project workforce by means of an on-site occupational healthcare provider, offering expert medical advice, dynamic health-promotion campaigns and on-site clinical support. This ensures that specific health care needs to be targeted as well as taking a flexible approach to managing the health and wellbeing of project personnel.

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In this way, Health Management can help improve the project’s performance, productivity and profitability.

Onsite medical facilities for both the construction and operational phases will be equipped and staffed to aid employee’s with minor and less serious ailments. In the event of serious illness or injury, depending on the situation, the employee will be transported by either air or sea to the nearest healthcare facility in Nuuk.

During construction and operation, the project employees will undergo a predefined medical examination prior to mobilization into the field.

Health Campaigns From time to time health campaigns will be championed by the onsite health provider or safety manager, these campaigns are aimed at improving workers general health i.e. advices given on smoking, diet, alcohol, exercise and stress. Campaigns will be delivered through posters, guides and leaflets, particularly at points in the employee's engagement with the project when it may have most impact e.g.; induction(s), staff newsletters, updates, training sessions, and away days, in different applicable languages.

Occupational Health Promotion Campaigns These campaigns are designed to prevent and reduce the risk to workers acquiring Occupational Diseases such as dermatitis; noise induced hearing loss, occupational asthma and hand arm vibration and occupational injuries associated with manual handling and repetitive strain.

This is done through targeted information and poster campaigns to all groups related directly or indirectly to the project.

Wellness Screening From the concept of construction through to operations it is imperative that the workforce remains healthy in order to work safely and efficiently without harm. This can be achieved by effective and established Health Management can provide a nurse led, on-site screening programme for employees. The approach would be to offer employees a standard medical assessment and the time to discuss issues of particular concern with trained occupational health staff. This could provide assurance that employees have been properly counselled, are aware of any health risks and are supported in their decision to change lifestyle and behaviour.

6.5.3 Health Services

6.5.3.1 Impacts on Health Services during construction

All workers and staff involved in the project will be required to have a private health insurance which will be provided to workers and mine staff either by mine operator or contractors as applicable in order to cover the potential health diagnostic or treatment expenses that could be needed in Greenland. This is planned to be supplied by the mine operator or contractors as applicable. While financially the use of health services may not be a problem, the additional pressure in a system working already at the limit will be noticeable. The amount of foreign workers who are expected to be involved in the construction activities is high and therefore the likelihood of use of the public health services is considerable.

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6.5.3.2 Impacts on Health Services during operation

All employees during the operations phase will undergo a pre-employment medical check and annual medical examination.. Onsite medical facilities for both the construction and operational phases will be equipped and staffed to aid employee’s with minor and less serious ailments. In the event of serious illness or injury, depending on the situation, the employee will be transported by either air or sea to the nearest healthcare facility in Nuuk.

All international workers are expected to be covered by private health insurance. Costs to the public health system are therefore expected to be negligible.

It is expected that an increasing demand for private health services will prevail e.g. on dentists and physiotherapist and thus stimulate the marked for more diverse private health services in Nuuk. Furthermore, a positive pressure for higher quality in health services in general might influence an upgrading in the quality of health services.

Proposed measures related to social and health services

• Develop clear criteria and conditions for use of local health services; communicate these to health providers and assess the need for supplementing capacity where necessary (upgrading of services or infrastructure, specific training of staff, etc), in cooperation with local authorities. • Establish contact with local health services and work out cooperation between both parties. • Maintain updated statistics on the use of health services in Greenland • Recommended obligatory health screening of workers also during construction phase, as a minimum, screening for transmittable diseases. • Where feasible, repatriate the affected worker to Island, Denmark or their country of residence.

6.5.4 Public Health and quality of life

The ISUA iron project is unlikely to have any influence in the public health of Kapisillit or other towns and settlements of Greenland apart from Nuuk. The assessment of these sections is limited to potential impacts and risk for the population of Nuuk, the employees of the project and their families when relevant.

6.5.4.1 Impacts on Public Health and quality of life during construction

The introduction of between 1000 and 3000 foreign workers to Greenland during the construction phase may have an impact on the health and quality of life of the public, as well as the individual health of each immigrant worker.

The no alcohol policy and restricted smoking areas that will be in place at the camp, both during construction and operation, mean that there will be virtually no impact in these areas.

International experience shows that prostitution often accompanies mining projects, yet in Greenland, the exchange of sexual favors for payment is virtually unheard of.

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There is the possibility that prostitution or sexual contact with the local population may occur, especially given that the workers will live away from their families. If so, the high incidence of teen pregnancies, abortions and STIs in Greenland could rise even further, thus worsening public health. However, the workers’ contact with the local population is expected to be limited, lessening the potential impact. Nonetheless, public health indicators such as the incidence of STIs and unplanned pregnancies should be monitored. Furthermore, it is recommended that the workers undergo STI testing prior to commencing work.

6.5.4.2 Impacts on Public Health and quality of life during operation

Greenland’s government has defined alcohol, violence, diet and physical activity, smoking and sexual activity as the key public health areas for 2007 – 2012. The operation of the mine project may have an impact on the health and quality of life of the employees and the public in general. Many of the potential public health and quality of life impacts mentioned in the above section on construction are also relevant during the operation phase. Improvements in the individual’s economic position often correlate positively with an improvement in the individual’s health. Therefore, potential positive impacts on public health from mining projects may include an improvement in nutrition, general life standards and access to medical services for staff and their families, as well as families benefiting from indirect jobs created by the project.

STIs, HIV/AIDS and Tuberculosis The negative impacts on health and quality of life of the community related to a mining operation are often related to interactions between the local community and the influx of staff. In other parts of the world, mining activities, particularly during the construction phase, has resulted in increase in STIs and HIV/AIDS among the general population and sex workers (Desmond N, 2005; Campbell C, 1997). In the case of Greenland, risk of tuberculosis can also be associated. The fly-in-fly out schemes, with transport to the country of residence via chartered flights from and to site, lessens the possibility for contact between the employees and the local community and reduces this potential impact if the airstrip will be built. There will be some employees permanently based in Nuuk, and up to 80 international staff on short-term visits who will overnight in Nuuk en route to the camp, who will add the potential impact of interaction with the local community and thereby the risk of unwanted pregnancies and STIs.

Alcohol and substance abuse The employees at the camp will be subject to a strict no-alcohol or illegal substances policy, and smoking, whilst permitted, will be restricted to certain areas. Furthermore, anti- smoking campaigns and other incentives to lead a healthy lifestyle such as the presence of exercise facilities at the camp could have a positive impact on public health and quality of life, not only among the employees at the camp, but also amongst the Greenlandic employee’s family. Nevertheless, during consultations in Nuuk, the risk of incidence of alcohol and intoxicants abuse, etc. during the home stay after long period in a dry camp has been identified.

6.5.5 Environmental impacts

These aspects are covered by the Environmental Impact Assessment (EIA) for the ISUA Project (Orbicon, 2012).

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6.5.6 Summary of impacts on public health and quality of life

The assessment of these sections is limited to potential impacts and risks for the population of Nuuk, the employees of the project and their families when relevant. No other town or settlement in Greenland is likely to be affected in its public health and quality of life.

Concerns regarding the health profile of international staff for both construction and operation have been expressed during consultation, especially regarding sexual health. One important risk during construction is expected to be related to transmission of STIs and tuberculosis, abortions and teen pregnancies, mainly via prostitution and sexual contact with the local population. The risk of contact is mitigated by the distance of the camp from Nuuk and the limited possibilities for accessing the town, except for the occasional layovers while travelling through Nuuk.

During operation, potential positive impacts in diet and life style, as well as risk of incidence of alcohol and intoxicants abuse, etc. during the home stay after long period in a dry camp has been identified.

Based on the pre-cautionary principle and the advantages of a strong preventive and corrective health and life style campaigns among the workers, measures are proposed in order to prevent as far as possible the occurrence of negative impacts on public health, and even contribute to a better local life standard.

Life in the camp presents a good opportunity to address diet, lifestyle and substance abuse issues, For example by strengthening the awareness campaigns already in place in the local community and developing strategies and availability of counseling to promote and support healthy choices within the camp.

Public health Risks Opportunities for increased awareness and prevention STDs M M Unwanted M M pregnancy Tuberculosis M M Tobacco Not significant L Alcohol M M Suicide L L Cardiovascular Not significant H diseases Table 6-18 Risks and opportunities to public health issues in Greenland

Table 6-19 shows the anticipated impacts on health.

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Anticipated overall impacts Impact category – Construction Before mitigation After mitigation Health Risk of accidents and injuries -M -L Health and quality of life -M -L Anticipated overall impacts Impact category – Operation Before mitigation After mitigation Health Risk of accidents and injuries -M -L +L No mitigations Health and quality of life required Table 6-19 Anticipated impacts on health from construction and operation.

Proposed measures related to public health and quality of life

Based on the pre-cautionary principle and the advantages of a strong preventive and corrective health and life style campaigns among the workers, measures are proposed in order to prevent as far as possible the occurrence of negative impacts on public health, and even contribute to a better local life standard.

• An initial screening of workers including a comprehensive health check should be made part of the recruitment plan. • Awareness-raising activities among workers on sexual behavior and risks of STDs should be included into the recruitment program, from the construction phase and through the life of the project. • Promotion and availability of healthy nutrition and physical activity. • Initial and regular health checks for employees (screening of TB, Cholesterol, diabetes, etc.). • Develop and implement strategies for making healthy choice the easy choice at the mine site: healthy food, local food, attractive and available exercise program, hand washing facilities and campaigns, etc. • Counseling services for staff and their families. • Active part of community health campaigns (e.g. safe sex, alcohol, non-smoking). • It is strongly recommended to extend FIDIC HIV/AIDS conditions to sub-contractors in all the tender documents and contracts related to Construction, operation and closure. • It is recommended to annually revisit and monitor social indicators such as population numbers and profile, unemployment, cost of living and perception of well-being, teenage pregnancy, STDs and HIV level. This monitoring information will allow an early “alarm” if demographic changes and social problems are larger than or differ from predictions. This recommendation is also applicable to impacts in social conflicts. • It is recommended to contribute to support local and national tuberculosis, early pregnancy and HIV/STD prevention initiatives from Paarisa and health authorities. • It is also recommended to design and implement information and prevention campaigns for prevention of Tuberculosis, HIV/AIDS and STDs among workers and contractors affected in the project. • Recommendation to establish together with the public health authorities a healthcare management including an ongoing monitoring of lifestyle. Objectives and means are to be discussed further with the public health authorities

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6.6 Cultural and natural values

6.6.1 Sites of monument or cultural importance

Archaeological sites The National Museum and Archives holds the conservational authority. In May 2010 there was passed a new law where dispensation for construction and disturbances within 20 m of periphery for culture historical remains and 500 m in large areas in the event of important social projects. The cultural remains are not graded in any way as it is not required meaning that all cultural remains are equally important culturally.

The following section is based on a meeting with representatives from the National Museum of Greenland as well as from a review of the archaeology survey reports prepared on behalf of London Mining by the National Museum of Greenland.

The archeological survey in the upper portion of the access road from River Crossing No. 1 to mine site was completed in the summer of 2012. The key conclusions of this latest survey by the National Museum of Greenland are the following:

The archeological surveys that have been conducted over 4 seasons (2008,2009,2011,2012) by the National Museum of Greenland have revealed anthropogenic structures that are protected under Greenlandic laws.
However, the National Museum of Greenland concludes that the construction of the Isua project can be accomplished without damaging the bulk of the recorded archeological structures.

Furthermore, it is London Mining plan to maintain a continuous follow-up with the National Museum of Greenland during the construction of the Isua project.

The Greenland National Museum and Archives have surveyed the project area in 2008 (Myrup, M. 2008), 2009 (Appelt, M. et al., 2009) and 2011 (Myrup, M 2008). The archeological survey conducted in September November 2011 was perfectly aligned with the routing of the access road between the port site and the river crossing 1, north from the planned air strip.

The archaeological survey conducted in September did not reveal any structure of archaeological relevance on the slurry pipeline/access road routing between the Taseraarsuk port facility and the river crossing N 1, also called Maqqaq qulleq.

The Greenland National Museum and Archives, NKA, will continue surveying the remaining sections of the routing, from river crossing no 1 to the process plant site in the summer 2012 and the report for the remaining portions will be produced subsequently.

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Figure 6-7 Archaeological survey (yellow line) conducted on the proposed slurry pipeline/access road section between the Taseraarsuk Port Site and the river crossing N 1, marked “DAY 1, Start”. The middle section routing was surveyed in 2008 and was not revisited in 2011. (Map by London Mining Greenland A/S and NKA). The map also shows the location of the possible airstrip

Isukasia The project area contains the findings of the one of the oldest known rock formations on earth (3.7-3.8 billion years old). The areas are outside the road routing and will not be disturbed by the project activities (Personal Communication, Department of Nature and Environment, 2010).

6.6.2 Access to natural areas perceived as important

Areas popular for Caribou hunting Potential impacts of the project for professional hunters are described in the section on traditional livelihoods, 6.1.5. Spare time hunting of caribou is popular in the ISUA project area. According to the interview based Local Use study in the ISUA project area, approximately 700 spare time hunters have used the area in the last two years. Figure 6-4 and Figure 6-5 shows areas most used by spare time hunters and areas where access is expected to be limited by the project. Of these areas, the project is expected to limit the access to specific areas where the port facilities, , air strip, plants, haul roads, pipeline and open pit operations.

Areas popular for Arctic char fishing The area where the port will be located and the mouth of the creek few kilometers north from this are popular areas for landing, camping and, upstream of the creek, Arctic char. While fishing will not be prevented as a result of construction and operation activities, the landing area at the port location will not be available for the public. However, other landing areas outside of the port sector are known by the local people.

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Kapisillit Close to Kapisillit, (the name for salmon in Greenlandic), there is a river, the only one in Greenland, that is home for Atlantic salmon (www.NASCO.org , www.nanoq.gl , Boertmann D, 2007). This area is far from the project area and is unlikely to be disturbed by the project. Furthermore, the area containing salmon is selected as preservation area by the Ministry of Domestic Affairs, Nature and Environment. The preservation is expected to be official in the coming years.

A mapping of the natural resources use was made during interviews, based on local knowledge from hunters and fishermen. It is not a scientific based mapping of the natural resources. The map shows that, according to local people, fishing from Kapisillit is mainly done in the nearby parts of the Fjord and not near the project area. Seal catch is done in the Fjord near the project area. The near-shore areas of the main part of the Nuuk Fjord are used for caribou hunting; the project area is one of the most important hunting areas according to local people. However, there is consensus that the final location of the road in the project area is more feasible and decreases the impact on caribou hunting in the area. In general, community members have confidence in the planning of the mine infrastructure and relate to a former water power project in Buksefjorden, showing that caribou adapt to the changing situation in their habitat.

Figure 6-8 Use of natural resources in Kapisillit and surrounding areas (Blue: fishing area; Green: seal catching; Red: caribou hunting areas. Map elaborated by the community chairman, professional fishermen and hunter). It is not possible to make a better map, based upon the responses.

Summary of impacts related to cultural and natural values

The impacts on the archaeological sites are negative low based on the National Museum of Greenland conclusions that the construction of the Isua project can be accomplished without damaging the bulk of the recorded archeological structures.

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Mitigation for disturbing archaeological sites involves setting up procedures if any archaeological findings occur during construction and operations as well as avoiding certain areas that are particularly important.

The impact on the Isukasia oldest rock formation is low as the access road is placed outside of the formation.

The impact on the access road to natural areas is also covered in section 6.1.5.

Table 6-20 shows the anticipated impacts on cultural and natural.

Anticipated overall impacts Impact category - Construction Before mitigation After mitigation Cultural and natural values No mitigation Not significant Sites of monument or cultural importance required Access to natural areas perceived as -L -L Important Anticipated overall impacts Impact category - Construction Before mitigation After mitigation Cultural and natural values No mitigations Not significant Sites of monument or cultural importance required Access to natural areas perceived as -L -L Important Table 6-20 Anticipated impacts on cultural and natural values from construction and operation.

Proposed measures related to cultural and natural values

• No structures of archaeological relevance were found in the section of the pipeline and road routing surveyed so far. Recommendations for the preservation and protection of eventually found structures of archeological relevance, if any is found in the section yet to be surveyed will be required by the authorities of the National Museum and Archives, NKA. • It is recommended to contact the Department of Nature and Environment within the Ministry of Domestic Affairs, Nature and Environment if there are any changes to the road routing that may affect the 3 areas of old rock formations. • It is recommended that the KNAPK and NAPP are informed of all ships going in and out of Nuuk Fjord to the project in a timely manner. It is recommended to send the information to the KNR (Greenland National Radio) of any ship activities for announcement. • Inform KNPK and free time about risk, restriction and alternatives related to hunting around the project infrastructures, road and pipelines.

6.7 Summary of anticipated impacts of the ISUA iron ore project

The table below shows the following color codes indicating whether the impact is positive, neutral, or negative, as well as the extent of the impact, i.e. whether it is low, medium or high.

Significance of Anticipated Impacts of the ISUA iron ore project

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Positive (benefits & Negative (risks and impacts) opportunities)

Not significant Not significant or Not relevant

Low +L - L Medium +M - M High +H - H

6.7.1 Key Benefits and Opportunities

The key benefits and opportunities during the construction phase are within the economic environment such as direct and indirect employment as well as local business opportunities and income taxes as can be seen in the next table for the construction phase.

The key benefits and opportunities during the operation phase (see second table below for operation phase) are the same as above mentioned including education and training, demography and population, and public health.

The benefits and opportunities, especially for the local business life, can be optimized further with some mitigation measures.

6.7.2 Key Risks and Negative Impacts

The key risks and negative impacts are on a more social and health level such as social conflicts, vulnerable groups, risk for accidents and access to natural areas during the construction phase. Furthermore, there will be a pressure on the development plans and public service.

The key risk and negative impacts during the operation phase are on the traditional livelihoods, conflicts with other sectors and the above mentioned.

The risk and negative impacts can be mitigated to reach low negative impacts for all of the above, except for conflicts with other sectors as it is expected that there will be other development projects developed.

6.7.3 Summary table

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Anticipated impacts – Construction phase Anticipated impacts – Operation phase

Impact Category Residual Impact after Expected Impact Expected Impact Residual Impact after mitigation mitigation

Economic environment

Taxes and revenues +L No mitigation required +H No mitigation required

Direct employment +M No mitigation required/proposed +M No mitigation required/proposed measures measures to maximize benefits to maximize benefits

Indirect Employment +M No mitigation required/proposed +H No mitigation required/proposed measures measures to maximize benefits to maximize benefits

Local business life & economy +M No mitigation required/proposed +M No mitigation required/proposed measures measures to maximize benefits to maximize benefits

Mitigations to be implemented on a non- Conflict/synergies with other sectors -L No mitigation required -M project level

Traditional livelihoods -L -L -L -L

Education and training +M No mitigation required/proposed +H No mitigation required/proposed measures measure to maximize benefits to maximizebenefits

Public services and development plans -M -L -M -L

Social aspects

Demography and population -L -L +M No mitigation required/proposed measures to maximize benefits

Social conflicts -M -L -M -L

Vulnerable groups Not significant No mitigation required -L -L

Health

Occupational health and risk of accidents -M -L -M -L

Public health and quality of life -M -L +L No mitigation required/proposed measures to maximize benefits

Cultural and natural values

Sites of monumental or cultural importance* Not significant No mitigation required Not significant No mitigation required

Access to natural areas -L -L -L -L

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7 DRAFT IMPACT AND BENEFIT PLAN

The following table summarises the proposed mitigation and enhancement measures proposed to be implemented by London Mining in order to prevent or mitigate the potential impacts created by the project.

This section of the SIA report contains the draft Impact and Benefit plan to be consulted with authorities and stakeholders. When developing the Impact Benefit Agreement, these plans will be incorporated as final versions, including the feedback received during the formal public consultations of the SIA report.

Mitigations are proposed both for construction and operation phases and have been previously presented in Chapter 6, Impact Assessment. While the efforts are concentrated in mitigation of potential negative impacts, measures to ensure or enhance positive impacts of the project are also proposed.

The column denominated Existing mitigation lists the measures taken by London Mining as well as already existing actions and plans implemented by Greenland authorities and organizations.

The present version of the Impact and Benefit Plan reflects the feedback received during the diverse consultations during the SIA process. Nevertheless, the mitigation measures have not been formally agreed with any of the authorities and stakeholders unless otherwise indicated.

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation Employment (direct during construction phase) Approximately 210-430 jobs from SIK has prepared proposals for • Information meetings with Greenland contract packages for local training initiatives for the mining and authorities, local companies and employer’s operators. oil sector organizations in order to inform on the contract packages to be tendered to local 25 staff at the London Mining Information on contract packages to companies. Office in Nuuk, 30% expected to be tendered locally made public and • Request reporting of % of local workers be local. provided to Greenland authorities, among the staff in the tender offers local companies and employers and employees organizations in at least 3 opportunities,

Employment (direct during operation phase ) From the first 5 years of the Administrative focus on improving • Early implementation of a Human Resources Local workforce for mine operation planned to operation phase estimated a employability of Greenlanders in the (HR) Division, when construction permit is increase to 55% after 5 years. workforce of approximately extractive sector granted, with HR staff dedicated to 20%local workers at ISUA, implementation of recruitment campaigns and Indicator: mainly for non-mining processing Training course at the School of contact with candidates in Greenland. Initially, Approx. 55 % of local workforce engaged in the jobs during the first 5 years. Minerals and Petroleum this can be supported by a locally based project headhunting or HR development company. • Extend recruiting campaign to Greenlandic people currently based in Denmark. While Greenlanders in Denmark read Greenland newspapers, use internet and are informed about job opportunities, arrangement for providing additional information or making interviews in Denmark could be of advantage. • Prepare a detailed job description for each of the job positions, and their corresponding requirements. • Pro-active and early communication with the Labour Unions, Professional associations and Municipal Job Centres on basic requirements to be filled by aspirants to jobs at ISUA, so they can upgrade the qualifications of these associates and clients interested in jobs at ISUA. • Discuss with the School of Minerals and Petroleum and ARTEK the possibility of adapting the curricula of the basic training

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation courses and the development advanced courses in order to match the needs of ISUA project and other highly mechanised mining operations, and thereby improve employment prospects of new graduates. • Explore the alternative benefits that could be included in the salary package and working conditions that can make ISUA project an attractive workplace for local qualified workers or even motivate local people to undertake an education related to the mining sector. i.e. insurance, housing or support to housing, etc. • In order to improve the retention of local workforce, it is recommended to ensure the presence of Greenlandic speaking HR staff, and includes role counseling services to help the workers to develop personal and group strategies to solve interpersonal conflicts and overcome difficulties adapting to the working and life condition. • Set up a program for intercultural understanding, to be provided to all the workforce and contractors. The program could consist of, for example: i) a course to enhance the understanding of Greenlandic culture and communications codes, mandatory to all international staff, contractors and subcontractors to operate in Greenland; ii) introductory course on rules and expectations related to behaviour and communication during working hours; including explanation on why the rules are established as such iii) workforce workshops for elaboration of social rules during free time activities and common relaxation areas, etc. iv) regular events for encouraging intercultural dialogue and understanding. The program should include monitoring of internal communication or behavioural conflicts and good experiences, in order to ensure regular feedback and improvement of the program. • Trained local foremen of the so-called trainee

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation programs. • linguistic upgrading English courses to be established by the Language School.

Local business life and economy – Construction Phase Specific contract packages Same as under operation (construction and services) to be offered to local contractors/suppliers on competitive basis.

Local business life and economy – Operation Phase Expected increased cost of living. GA’s (Grønlands All measures are based on the condition that they Expected 70% of business opportunities Business opportunities for local Arbejdssgiverforening) initiatives to are economically viable, or cost competitive, or provided by local companies companies during the 15 years of promote local business for mining non-detrimental to the overall cost of the contract. operation: companies (network workshops) • Drilling, logistic support, field • Maintain a close dialogue and continuous supervision, geological survey London Mining Greenland A/S, to updates with Municipal and National and other investigations become member of GA and authorities on the plans and progress of the • Construction of camps, site participate on the initiatives on local project, defining as accurately as possible the services and pre-stripping business actors needs of the project and the timing of the • Additional construction activities during construction. projects during the operations Participate and organise open day • Maintain regular contact with the Greenlandic • Port operation components events to inform, identify and attract Employers’ Associations, keeping them • Waste management during potential services and goods abreast of upcoming opportunities and construction and operation suppliers and workforce discussing solutions and alternatives to • Air transport potential challenges for the local companies to • Helicopter support access business opportunities during the • Demand for food and goods, construction and operation phases. Within this particularly local meat and fish forum, analyze and discuss the results of • Camp logistics and support tender process and performance of local services. companies, providing constructive feedback to improve both access to business and the • Housing and accommodation quality of services. in Nuuk, including taxi, • restaurants, etc. Develop a Corporate Social Responsibility strategy and implementation plan for the Indirect business opportunities project, including commitments and defined potentially created or enhanced actions towards increasing the share of local by the project: business (also known as local content). • • Private primary Monitor indicators related to volume and type education ad day care of business and local share, and incorporate

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation services to the annual report. It is further • Private health services recommended to follow Global Compact • Private English- indicators and reporting procedures, or its Greenlandic courses specific indicators developed for the extractive • Private counselling industry • Unbundling of contracts for services and supplies to camp where there exists no cost hindrance to the project • Preferential purchase of local goods and services to the mine camp operation regarding communication, logistical and support services. • Inform Tourist Council and Municipal authorities on the expected requirements of hotels and temporary housing for each year. • Requirement in contract with the providers of catering services to supply local/traditional food • Engaging the professional hunters in Kapisillit and Nuuk in providing some of the regular Greenlandic food for the canteen and camp in general Conflict/synergies with other economic sectors during construction Competition for human resources No mitigation can be proposed in this area in the construction sector

Conflict/synergies with other economic sectors during operation Potential synergies identified so No mitigation proposed far • Increasing volume of business Re-assess socio-economic effects, particularly in opportunities for the on shore traditional livelihoods, of cumulative business and construction environmental impacts in case other projects are sectors implemented in the mining or petroleum sectors • Positive synergy within other oil and mining projects • Positive synergy with tourism activities and spare time services and goods

Conflicts identified so far • Competition for qualified

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation workers, including risk of attracting the most qualified and experienced people from the public sector, • Cumulative environmental impacts, in case of approval of other mining projects (small scale and large scale).

Traditional livelihood - construction Prohibition of hunting close to Same as in operation Changes on hunting and on-shore fishing construction areas and camps. areas.

Disturbance of caribou Minimal or no decrease on the amount of population, leading to local caribou shot annually by professional and displacement of both caribou and recreational hunters habitual hunting areas.

Fishing and camping areas at Taseraasuk and area around the air strip. Permanently unavailable

Traditional livelihood – operation Caribou displaced from habitual Strict enforcement of prohibition of all hunting Changes on hunting and on-shore fishing areas due to disturbance from activities for foreign staff, contractors and areas. project activities and subcontractors involved in the project both within infrastructures and outside working hours, during all phases of Potential increase of time and resources the project. required for caribou hunting activities Prohibition of hunting in areas close to project infrastructures for As per EIA, strict implementation of mitigation Professional hunting and use of natural safety reasons. measures for preventing or reducing impact on resources for own consumption, share and caribou due to disturbances created by project sale maintained as form of livelihood in Nuuk Potential reduction in the activities during construction and operation, as and Kapisillit in same degree as before the numbers of caribou shot well as potential barriers due to project project. infrastructures. Potential increase of time and Small or no decrease on household income resources required for caribou In coordination with national authorities, establish from own consumption and sale of caribou and hunting activities. exclusion areas during construction and operation, seal produces. where hunting and fishing activities are not

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation allowed due to safety and security reasons for the Sharing of hunting and fishing produce and hunters, the staff and project infrastructures. traditional food as important part of the local culture undisturbed by the project. As per EIA, establish a monitoring plan to register and study changes in the caribou population of the area. Moreover perform annual monitoring of hunting and other traditional livelihood activities in the project area, in collaboration with KNAPK.

Provide initial and regular information and explanations about the exclusion areas to the professional fishermen and hunters through their organization, KNAPK, as well as to recreational hunters through public media, meetings, pamphlets, etc. Coordinate with local authorities for reinforcing the information campaigns when licenses are renewed, etc.

During construction and operation, make formal agreements with local fishermen and hunters for the provision of fish and meat for the camps, directly or through the catering/canteen service.

Promote consumption and sales of locally produced food, handicrafts and seal skin products among international staff, providers and consultants.

Continue the presence of representatives of KNAPK in the consultation committee of the project.

As seal hunting is commonly a secondary activity of fishing, the amount of caught seals declared during the study may indicate that fishing activities with small boats is an activity more widespread and significant than originally expected. It is therefore recommended to perform a quantitative study and mapping of professional and recreational fishing in the waters along the Akia/Nordlandet area.

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation Annually cross check monitoring environmental information with impacts on performance and hunting/fishing areas for both professionals and recreational hunters.

Education and training – operation Increased specific capacity for • Undertake an assessment of training needs • Increased specific capacity for working in working in the extractive industry and base on this and the detailed job the extractive industry for 350-400 workers for local workers. description, prepare a job training program for (Note: positions to be offered to local the required job categories workers) Increased motivation and interest • Actively promote training in English language, towards careers related to the for both potential workers as well as for • Availability of apprenticeship positions, mining industry and upgrading of improving the communication skills of local estimated as 30 to 50 per year, depending language, administrative and workers, for example offering courses to be on availability, to benefit the vocational technical qualifications taken during their weeks off or after work and higher education institutions such as hours on the site. the School of Minerals and Petroleum, Increased administrative focus • Involve the School of Minerals and Petroleum Arctic Technology, Navigational school, on relevant training and local in the training and recruitment program. INUILI (cooking school) and their employment opportunities in the • Discuss with the School of Minerals and advanced students mining sector Petroleum and ARTEK the possibility of adapting the curricula of the basic training courses and the development advanced courses in order to match the needs of ISUA project and other highly mechanised mining operations, and thereby improve employment prospects of new graduates. • Discuss with the School of Minerals and Petroleum and ARTEK, INULI and Navigational School the possibility of allocating a number of job positions as apprenticeship positions for advanced students. • Development of an on the job-training program for staff on specific duties, safety, etc. • Dedicated, locally based Greenlandic

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation speaking Human Resources Manager to develop and follow up on recruitment, training and career development of the staff. • Regular evaluation of progress on the training programs and performance of apprentices and local and international staff, in order to continuously optimize the internal training programs and provide feedback to educational institutions. • Early development of a reinsertion program for workers after mine closure

Impact on Public services and development plans – construction phase Pressure on administration of Local and national plans and Same as in operation Waste management services infrastructures in municipal permits for the programmes Nuuk either unimpacted by the project after construction phase 2013

Increase work load at customs and taxation office

Increased work load for immigration authorities and officers

Overload of waste management services in Nuuk between 2012- 2015. Pressure on development plans – operation phase The needs of the project will Local and national plans and Establish cooperation with Sermersooq Housing demand from the project is satisfied have implications on key aspects programmes Municipality as soon as possible, in order to clarify without compromise public housing availability of the local provision of services the following aspects: or waiting time. and development in Sermersooq • Estimation of housing demand for the project Municipality, in particular on: during construction and operation Availability of hotels and private rental • Housing • Alternative plans for short term and long term accommodation potentially reduced and more • Air traffic in Nuuk Airport housing for staff and their families in Nuuk expensive as consequence of project • Maritime freight traffic, both • Project needs related to treatment and final demands. directly and indirectly related to disposition of certain types of wastes, and the project solutions acceptable for the Municipality Prioritization of actions related to • Treatment of hazardous and • Plan for use of port facilities and dock space in upgrading/extending housing and air traffic special fractions of waste the port of Nuuk. services in Nuuk in municipal and national • ISUA Project plan for submission of request for development plans

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation construction permits, so the Municipality can better organize its work. Waste management services infrastructures in Nuuk are either non impacted by the project or Avoid in all cases municipal housing and use have been upgraded with support from the private rental project .

For short term accommodation in Nuuk consider a Promote development of new and innovative framework contract with the local hotels and waste recycling local business. temporary rented accommodation facilities where expected services and approximated time plan will be specified

Assess the type and quantity of waste potentially produced and consider alternative waste treatment solutions. Minimize shipping of domestic wastes for treatment to the facilities in Nuuk during construction. Promote development of new and innovative waste recycling/reuse local business.

Transboundary transport of hazardous waste may create additional unwanted risks. It is suggested that, in coordination with the Municipality, joint efforts are made in cooperation with other mining and oil projects in order to co-finance the upgrading of the waste treatment facility in Nuuk to handle hazardous wastes. Demography and population , Social Conflicts and Vulnerable groups – Construction Approximately 1000 to 3000 • Monitoring of the demographic changes taking Approximately 1000 to 3000 temporary temporary international workers, place in Nuuk, e.g. the number and profile of international workers, mostly male, expected mostly male, expected for a international staff locating in Nuuk , number of for a period of 3 years period of 3 years Greenlandic immigrants, both workers and their families.. Grievances related to project activities, project Risk of installation of prostitution • Implementation of a Grievance Mechanism for staff or contractors identified, register and the project, according to IMF standards and satisfactory resolved. Risk of increase of unwanted best practices of the mining industry, to be pregnancies and aborts operational from beginning of the construction Social impacts and risk re-assessed based on phase. Citizens should be able to express systematization of findings and lessons learned Risk of increase of sale of illegal verbal or written complaints in Greenlandic, from the implementation of the Grievance drugs. Danish or English related to grievances Mechanism and monitoring of socio economic caused by or related to project activities, the indicators. Measures to prevent and mitigate Emigration of Greenlandic project staff, its consultants or contractors. social conflicts during construction have been women, following new partners. Procedures for reporting the complaint should identified and implemented in coordination with

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation be widely communicated. Duration of the Greenlandic Authorities.. Potential extension of resident or resolution process and how disagreements working permits from temporary will be resolved must be clearly explained. In case of that significant increase of unwanted workers and later their families • A Grievance mechanism will help in the pregnancies and aborts, installation of identification of social conflicts that were not prostitution or illegal activities that can be predicted or expected, as well as prevent directly related to the project are identified, conflicts from escalating by providing speedy mitigation measures are discussed with the and acceptable resolutions. Greenland authorities. • Monitoring of workers actually visiting Nuuk during their days off and the percentage of workers that extend their stay in Greenland beyond the construction period needs to be monitored in coordination with the Greenland authorities to fully assess the real impact. • It is recommended that measures are taken to prevent risks stemming from the high number of international workers during construction, including facilitation of access to Nuuk, awareness raising activities related to sexual behaviour and understanding of the Greenlandic culture and way of life. • It is not expected that a significant number of construction workers will choose to spend their one free day per week in Nuuk. Nevertheless, if this proves otherwise, measures should be taken to regulate the amount of workers in town simultaneously. • Awareness raising and team building activities should be planned at the camp with the intention of creating intercultural understanding and respect among workers of different nationalities including providing international staff with a basic understanding of Greenlandic culture, etiquette and basic vocabulary. • Furthermore, contracts with suppliers should reflect measures for the prevention of risks for social conflict. Demography and population , Social conflicts and vulnerable groups – Operation

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation Expected reduction on National social and public health • Monitoring of the demographic changes taking Expected reduction on emigration of emigration of Greenlanders. prevention program place in Nuuk, e.g. the number and profile of Greenlanders. Paarisa international staff locating in Nuuk , number of Expected immigration of Greenlandic immigrants, both workers and Expected immigration of resourceful and highly resourceful and highly skilled their families.. skilled Greenlanders and foreigners, potentially Greenlanders and foreigners, • Evaluation and if necessary improvement of with their families (working assumption potentially with their families the Grievance Mechanism for the operation estimate 100 singles, 50 families) (estimated 100 singles, 50 phase of the project, based on lessons families as working assumption) learned from the construction phase. Social conflicts larger or different than • Bi-annual review of grievances reported and predicted identified and assessed. Risk of increased social solutions provided. Number of grievances exclusion of unskilled workers received and %of them satisfactory resolved Substance abuse or psychosocial problems without any formal qualifications reported in Sustainability annual reports. among local workers or their families and language skills and their • Number of workers that extend their stay in associated with the change of life style and families. Greenland beyond the contract period to be family situation are identified and support monitored in coordination with the Greenland provided. Homelessness or overcrowding authorities to fully assess the real impact. of households due to increased • Annually revisit and monitor social indicators No significant increase in unwanted demand and cost of housing, related to population numbers and profile, pregnancies and abortions that can be directly affecting families with low income unemployment, cost of living, pressure on related to the project. In case of that significant and young families. housing, perception of well-being, unwanted increase of unwanted pregnancies and aborts, pregnancies, teenage pregnancies, STDs, TB, installation of prostitution or illegal activities Risk of migration of the most and HIV level. This monitoring information will that can be directly related to the project are capable staff from the public to allow an early “alarm bell” if demographic identified, mitigation measures are discussed the private sector, resulting in a changes and social problems are larger than with the Greenland authorities. temporary decline of the quality or differ from predictions. of public services • Coordinate with local authorities the selection and monitoring of indicators of social Risk of conflict and cultural clash wellbeing for the vulnerable groups, as well as between international workers support initiatives and policies to protect and and local workers employed by support vulnerable children and their families. the project due to communication • Awareness raising and team building activities or personal problems. should be planned at the camp with the intention of creating intercultural Risk of increase number of understanding and respect among workers of pregnancies and abortions, different nationalities including providing international staff with a basic understanding Risk of growth in the exchange of of Greenlandic culture and language. This sexual favors for presents should be repeated twice a year to ensure between wealthy staff and young that new staff is integrated and understanding locals. reinforced.

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation • Contracts with suppliers should reflect measures for the prevention of risks for social conflict. • Free or subsidised alcohol counselling for the local workers or their families can play an important role both in retention of local workforce and prevention of social problems related to increase of substance abuse trigged by changes in life style and family situation. These efforts can be coordinated with public health programs (PAARISA) and specialised local organizations. • It is recommended to support national early pregnancy initiatives from Paarisa and health authorities. Occupational health and risk of accidents The potential risks of accidents Regulations which promote • Development and Strict implementation of are associated with workers instruction and supervisions in order Health and Safety plans and procedures for behaviour/attitude with their to reduce the accidents and to focus construction and operation. working environment as well as on a health and safety working • Continuous Health and Safety training for all lack of instruction or lack of environment workers, employees. maintenance of equipment. • Contractual requirements to suppliers and Greenland Working Environment Act contractors regarding safety measures, response time, etc. in order to minimise risk of accidents, appropriate and timely response in case of accidents, emergency evacuation from mine site, etc. • Pre-notification of operations, exploration activities or similar and traffic of vessels to local authorities and community in Kapisillit, hunting and fishing groups and users of area Health Services – operation Pressure on public health system All workers and contractors are • Develop clear criteria and conditions for use Moderate to small pressure on public health due to increased demand on covered by private health of local health services; communicate these to system due to increased demand on diagnostic diagnostic and treatment medical insurances. Services provided by health providers and assess the need for and treatment medical services services that cannot be provided the public system can be refunded supplementing capacity where necessary Increased availability of private dental, on site as appropriated. (upgrading of services or infrastructure, physiotherapy services, etc. specific training of staff, etc.), in cooperation Positive pressure for higher quality in health Increased availability of private with local authorities. services in general might influence an dental, physiotherapy services, • Establish contact with local health service and upgrading in the quality of health services. etc. work out cooperation between both parties.

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation • Maintain updated statistics on the use of Positive pressure for higher health services in Greenland quality in health services in • Recommended obligatory health screening of general might influence an workers also during construction phase, as a upgrading in the quality of health minimum, screening for transmittable services. diseases. • Where feasible, repatriate the affected worker to Island, Denmark or their country of residence.

Public health and quality of life – Construction and Operation During construction and During construction, limited contact • FIDIC HIV/AIDS conditions extended to sub No significant increase in STI and TB levels operation: risk of transmission of with local population due to distance contractors in all the tender documents and that can be directly related to the project. If so, STIs and tuberculosis, mainly via of the construction camp form Nuuk contracts related to Construction, operation the issues are identified, mitigation and prostitution and sexual contact and Kapisillit, and accessibility and closure. measures are discussed with the Greenland with the local population limitations • Promotion and availability of healthy nutrition authorities. and physical activity in the mine camps. During operations, risk of Existing national campaigns to • Initial and regular health checks for Operation: 60% of local workforce with incidence of alcohol and prevent substance abuse, unwanted employees (screening of TB, Cholesterol, improved, eating and exercise habits. intoxicants abuse, etc. during the pregnancies, smoking and STIs and diabetes, etc.). home stay after long period in a promote healthy diet and exercise • Develop and implement strategies for making 100% of local workforce with improved life dry camp healthy choice the easy choice at the mine quality. site: healthy food, local food, attractive and Opportunities of positive impacts available exercise program, hand washing on diet, exercise and life style, facilities and campaigns, etc. • Counseling services for staff and their families. • Active part of community health campaigns (e.g. safe sex, alcohol, non-smoking) both for the staff and the community.. • It is recommended to annually revisit and monitor social indicators such as population numbers and profile, unemployment, cost of living and perception of well-being, teenage pregnancy, STDs and HIV level. This monitoring information will allow an early “alarm” if demographic changes and social problems are larger than or differ from predictions. This recommendation is also applicable to impacts in social conflicts. • It is recommended to support local and

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Description of the Impact Existing mitigation Proposed measures Impact after mitigation national tuberculosis, early pregnancy and HIV/STD prevention initiatives from Paarisa and health authorities. • It is also recommended to design and implement information and prevention campaigns for prevention of Tuberculosis, HIV/AIDS and STDs among workers and contractors affected in the project.

Cultural and natural resources Impact on archaeological sites • As recommended by the National Museum, if possible avoid sites with cultural remains, Better accessibility to Isukasia keeping a minimum of 20 m around the preservation areas )oldest known archaeological structures for preservation rock formation) • Ensure that the three areas of 100 x 100 m at Isukasia proposed for preservation due to its Limited access to areas popular geological uniqueness are not disturbed. for arctic char fishing • It is recommended that the KNAPK and NAPP (Taseraarsuk) are informed of all ships going in and out of Nuuk Fjord to the project in a timely manner. It Prohibition of hunting in areas is recommended to send the information to close to project infrastructures the KNR (Greenland National Radio) of any and activities, for security ship activities for announcement. reasons • Inform KNAPK and free time about risk, restriction and alternatives related to hunting around the project infrastructures, road and pipelines.

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8 DRAFT MONITORING PLAN AND DRAFT EVALUATION PLAN

The draft monitoring and the draft evaluation plan are prepared with the use of a logical framework according to recommendation of high international standards and best practices (ICMM, 2005)

The SIA report contains the draft monitoring and evaluation plans to be consulted with authorities and stakeholders. When developing the Impact Benefit Agreement, these plans will be incorporated as final versions, including the feedback received during the consultations.

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Draft monitoring plan

Impact and Benefit Plan Objectively verifiable indicators Sources of verification Risks and Assumptions (Monitoring Plan) Results Economic Environment Monitoring Plan for Recruitment Programme for Local Workforce Goal: Achieve the proposed percentage of local workforce for 20% local workforce during the first 5 years operation of operation, subject to availability and to the possibility of mobilizing such a level of workforce in Greenland.

55% local workforce after 5 years, subject to training and availability of interested candidates. Outcome 2: Increased awareness on the requirements for applying for Local workforce available and the different job categories for the operation phase interested in working in the mine operations Output a): Training Needs Assessment carried out in cooperation Number of initiatives taken by authorities Training Needs Resources allocated to the between London Mining and authorities and organisations to improve qualifications Assessment report cooperation between the mining Output b): Authorities and relevant organisations take measures in of potential candidates Reports of training company and authorities order to ensure qualifications of local workers Number of people enrolled in specific activities of relevant courses on relevance to the mining sector organisations Input: Detailed job description and requirements for all categories of Job descriptions and qualification Report and list of job during operation phase made public available to community, requirements developed and distributed to distribution municipality, unions and technical schools all relevant stakeholders Outcome 1: Creating an attractive working place for recruitment and retention of seasonal local workforce Output: Elimination of main cultural, gender and geographical barriers Number of workforce from settlements Annual report Female and monolingual within the municipality of Kommuneqarfik Sermersooq Percentage of female workforce per job workers available and interested Definition of an optimal rotation scheme for the workforce on site category in working in mine operation and Percentage of fisherman and hunters per related services job category Percentage of monolingual (Greenlandic) workforce Input: Addressing cultural, gender and geographical issues under SIA, Stakeholder engagement process Meeting protocol with emphasis on the seasonality and co-existing with fishing and conducted hunting activities, incorporating findings into planning of the project (rotation scheme, transport arrangements and working conditions at

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Impact and Benefit Plan Objectively verifiable indicators Sources of verification Risks and Assumptions (Monitoring Plan) camp) Monitoring Plan for Business Life Goal: Positive impact on general business life Outcome: High level of purchase and contracts with local businesses Output a): Local actors engaged and informed about tender procedure Number of local actors involved in the Received proposals Local business has the and type of contracts available from the mine tender process necessary capacity to invest in Output b): Local actors able to engage in specific contract agreements service delivery with the mine Input a): Open day events in Nuuk for local actors Number of participants of open days events Meeting protocol Input b): Unbundling of contracts for services and supplies to camp in Nuuk Tender documents with no cost hindrance to the project Input c): Sensitive elaboration of tender documents Number of contracts tendered Monitoring Plan for Education and Training Goal: Contribute to the development of skills and competences of the workforce in Greenland Outcome: High level of skills and competences among the workforce Output: Provision of high quality competency development of staff Staff motivated to invest time in training activities Input a): Recruitment program involving the School of Minerals and Number of participant in the recruitment Petroleum program Input b): On-the-job training programme for staff on specific duties, Training protocols safety etc. Number of on-the-job training conducted Agreement with School of Input c): Trainee positions available for students from School of Minerals and Petroleum Mineral and Petroleum. Number of trainee and internship per year Input c): Reinsertion program for workers after mine closure Public services and development plans Monitoring Plan for impacts on Existing Infrastructure and Services Goal: Minimize pressure on relevant municipal infrastructures Outcome: Ensuring necessary upgrading of services and Local services willing to infrastructure. cooperate in the upgrading of services and infrastructure Assessment carried out Assessment report Local services willing to cooperate in the assessment

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Impact and Benefit Plan Objectively verifiable indicators Sources of verification Risks and Assumptions (Monitoring Plan) Social Aspects Logical Framework Matrix for Demography, Social Conflicts and Vulnerable Groups Goal: Minimizing social pressure on the local community Outcome: Ensuring dialogue with the local community Output a): Local community engage in continuous dialogue with the Number of information send out Protocols project and receives timely and relevant information on project Number of participants in dialogue meetings Minutes of meetings activities Output b): Ensuring that the project responsible are aware of any Number of complaints received Complaints register issues of importance for the local community and able to register and handle complaints from the community and act upon dissatisfaction Number of actions taken Handlings register Output c): Ensuring relevant information on social development in Kapisillit and Nuuk including early warning mechanism Information collected every six month Bi-annual social monitoring report Input a): Assign a full time, Greenlandic speaking HR and Community Employee hired Payrolls Relation person Communication strategy developed Strategy paper Input b): Establish a grievance mechanism for local community Grievance mechanism established Grievance mechanism complaints and local community information dissemination Community information procedures guideline Input c): Establish a social monitoring program to be carried out every developed Information materials six month List of social indicators developed Monitoring indicator Baseline established document Baseline document Health Monitoring plan for Occupational Health and Safety Goal: Avoid accidents related to the mine (0-tolerance) Outcome: High standard of OHS on the mine site and in related operations Output a): Minimize the risks of accidents directly at the mine site Number of accidents at the mine site Quarterly report on Local authorities has the Output b): Minimize the risks of accidents related to the mine operation accidents necessary capacity and Output c): Ensuring appropriate and timely response in case of Number of accidents related to the mine resources allocated for response accidents and emergency evacuation from mine site operation Emergency report from authorities Preparedness exercise Report - authorities Input a): Emergency and contingency plans in coordination with Emergency and contingency plans Emergency and

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Impact and Benefit Plan Objectively verifiable indicators Sources of verification Risks and Assumptions (Monitoring Plan) Greenland Contingency Committee developed contingency plan Input b): Health and safety plan for the mine site document Input c): Contractual requirements to suppliers regarding safety Acknowledgement from measures and response time Health and safety plan developed Greenland Contingency Committee Input d): Training of staff on safety and emergency response on the Health and safety plan mine site Requirements to suppliers developed document Input e): Establish health and safety committee with joint participation Number of staff trained of workers helping to monitor and advice health and safety programmes Supplier contracts Input f) Pre employment and annual medical check of workforce H&S committee established Training protocols

List of committee members Agreement on committee authority

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9 STAKEHOLDERS CONSULTATIONS AND PARTICIPATION

9.1 Public Hearing process

On 16 th August the draft SIA Report was publish at the official hearing portal of Nanoq (www.nanoq.gl ). The public hearing period ended on 19 th October 2012. During this period BMP organized four public meetings and in addition London Mining organized a number of project information meetings.

The four official public meetings organised by BMP focused on different topics. First meeting took place on 27 th August which was a general meeting introducing the hearing process and focused on a presentation of the project. Second meeting took place on 7 th September and focused on the SIA process, where the third meeting took place on 24 th September focused on the EIA. The final meeting was on 7 th October which was an open debate on all topic raised at the previous meetings.

At the hearing portal additional information is available from these meetings including minutes from all meetings and answers to the questions raised during the public meetings. During the hearing period 33 written hearing responses were received.

A white book has been prepared. The white book contains three parts. Part I is related to the meeting on the SIA process, part II is related to the meeting on the EIA while part III includes the 33 written hearing responses. The white book has been submitted to BMP on December 2012 (Parts I & II) and January 2013 (Part III).

This SIA has addressed the relevant comments from the Public Hearings.

This section presents the review of Stakeholders and list of consultations, participation, workshops and information meetings involving the stakeholders. The consultations, workshops and information meetings for the scoping, baseline and impact assessment phases where performed between November 2009 and December 2011.

Scoping Workshop Date Participants Organization/stakeholder Workshop on Scope of Social Impact Assessment for ISUA Iron Ore Project 18/11 2009 1 SIK (Empoyees’ union) 1 GA (Employers’ association) 1 Working environment authority 1 Greenland Mining Services 1 KANUKOKA (Municipalities’ Association) 1 The National Museum and Archives Kaj Kleist London Mining A/S Bolette Maqe Nielsen London Mining A/S Rikke Carlsen Grontmij | Carl Bro Tanja Nielsen Grontmij | Carl Bro From the Greenlandic Government 3 BMP 1 Ministry of Health 1 Ministry of Business and Labour 1 Ministry of Domestic affairs, Nature and Environment 1 Ministry of Social Affairs 1 Ministry of Housing and Infrastructure 1 Ministry of Culture, Education and

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Research From Kommuneqarfik Sermersooq 2 Dep. of Labour Market 1 Dep. of Business Development Meeting with BMP 19/11 2009 1 BMP Kaj Kleist London Mining Greenland Table 9-1 Public Participation – Scoping participants

Baseline and impact workshops and interviews Date Participants Stakeholder/Organization Kick off meeting – Baseline field work 18.11.10 1 Kom. Sermersooq, Dep. of Labour Market 1 KNAPK (Hunters’ and fishermen’s Association) 3 KANUKOKA (Municipalities’ Association) 1 Ministry Of Health 1 Kom. Sermersooq Dep. Nature and Sustainability 1 Kom. Sermersooq Dep. Business Development 1 Kom. Sermersooq 1 Geo Arctic Construction ApS 1 NUSUKA (Employers’ Association) 3 SIK (Employees’ Association) 1 Director of Construction and Environment in Kom. Sermersooq

1 ASIAQ (Greenland Survey) 1 BMP 2 GA (Employers’ Association) 1 Greenland Mining Services 2 Ministry of Domestic affairs, Nature and Environment 4 Xploration Services 2 NAPP (Nuuk Association of Fishermen and Hunters) Individual Interviews – University of Greenland 9/11 2010 Birger Poppel Researcher, SLICA project (Survey of Living in the Arctic) - Ilimmarfik 9/11 2010 Tina Pars Head Master- Ilimmarfik 12/11 2010 Ruth Montgomery-Andersen Researcher – Ilisimatusarfik Meeting with the Ministry of Domestic Affairs, Nature and Environment and the Greenland Institute of Natural Resources 10/11 2010 1 Greenland Institute of Natural Resources 4 Ministry of Domestic affairs, Nature and Environment Meeting with the Department of Health in Kommuneqarfik Sermersooq 11/11 2010 2 Dep. of Health

Meeting about social health and vulnerable groups 11/11 2010 2 Qaqiffik (Alcohol treatment center) 1 Ilimmarfik (University) Meeting with Dep. of business, labour and education in Kom uneqarfik Sermersooq 12/11 2010 1 Dep. of Business development 1 Dep. of Labour Market 1 Environmental Director

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1 Ministry of Industry and Labour Meeting with GMS and Nukissiorfiit 12/11 2010 3 Greenland Mining Services 1 Nukissiorfiit Workshop on Demographic Changes and follow up e -mail communication 30/05 2011 1 PAARISA, Agency for Health and Prevention 1 Ministry of Health 1 Ilimmarfik, University of Greenland 2 Tax Agency 1 Ilimmarfik, University of Greenland Baseline and local use interviews with community representatives in Kapisillit 31/05 – Representative from 02/06 2011 Kommuneqarfik Sermersooq Kapisillit Head of skin sewing workshop for women Young unemployed man Community chairman, fisherman and Katechet School administrator Two elder women Visiting school teacher from Nuuk Individual interviews with fishermen and hunters - quantitative information Fishermen and hunters are in possession of a valid commercial catch license in Nuuk og Kapisillit, interviewed Anonymous professional at KNAPK offices. fishermen and hunters 15/62011 – (approximately 49 in total) 5/7/2011 Greenlandic consultancy company

subcontracted by Grontmij A/S to HS Analyse conduct the survey on local population’s use of the project area

Recreational sailboat owners from the marina Iggia, interviewed at the Anonymous recreational pontoons in Iggia. hunters, represented by 15/62011 – owners of sailing boats (208 in Greenlandic consultancy company 5/7/2011 total) subcontracted by Grontmij A/S to HS Analyse conduct the survey on local population’s use of the project area

Table 9-2 Public Participation – Baseline and Impacts participants

Public meetings Date Participants Organization Public information meeting Nuuk – ISUA SIA 18/11 2010 Kaj Kleist London Mining Greenland Marcel Pineau London Mining Greenland Xiaogang Hu London Mining Greenland Bolette Nielsen London Mining Greenland Tanja Nielsen Grontmij A/S Ana Gabriella Factor Grontmij A/S Rikke Carlsen Grontmij A/S Sam Bucetelli SNC Lavalin Approx. 50 people from the

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public, representing:  The environmental institute  Environmental authorities  The environmental and technical department of Kom. Sermersooq  KNAPK and NAPP, National and local fishermen and hunters organizations  SIK and PK, workers organizations  University of Greenland  BMP  Local and Danish environmental and technical consultants Public Information Meeting of November 2010 in Nuuk - : Purpose of the Public Meeting: To present to the local community the Description of the Isua Project, the Steps for Developing the project and to receive comments, questions and concerns from the community; Presentations by London Mining, EIA Consultant Orbicon A\S and Grontmij A\S

Public Information Meeting of May 2011 in Nuuk –

Purpose of the Public Meeting: To present to the local community update about the progress of the Isua project and to receive comments, concerns and questions from the community, including progress with EIA, SIA, engineering, schedule. Presentations by London Mining, EIA Consultant Orbicon A\S and SIA Consultant Grontmij A|S.

Public Information Meeting of September 2011 in Nuuk

Purpose of the Public Meeting: To present to the local community update on the Progress of Isua project and preliminary results of studies; presentations by London Mining, BFS Engineer SNC-Lavalin and EIA Consultant Orbicon A\S.

4-day Public Consultation/Workshop in Nuuk – February 22 nd to 25 th .

Purpose of the Public Consultation/Workshop: 4 days dedicated to inviting local community at the Nuuk Cultural Center to ask questions, to express concerns and suggestions in connection with the Isua project.

Opening of the Isua Project Public Information Center in Nuuk – November 2011

Starting November 2011, a Public Information Center was opened in Nuuk, opened daily in the afternoon during working days to allow the local community to have continuous access to information about the Isua Project.

Public Information Meeting Kapisillit May 2011 – ISUA project and SIA process 31/05 2011 Public Meeting and workshop with the small community of Kapisilit by London Mining and Grontmij Table 9-3 Public Participation – Public Information Meeting participants

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Nordisk Statistisk Årbog 2010

Nordic Databank 2010

Nordic Database 2010

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Orbicon, December 2011. Caribou in the ISUA project area and assessment of potential impacts of mining activities. Annex I Environmental Impact Assessment for the ISUA project, Draft version.

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Poppel B. et al, Survey of Living Conditions in the Artic (SLiCA): Inuit, Saami and the Indigenous Peoples of Chukotka, 2007. http://www.arcticlivingconditions.org/

Rambøll, Appaluttoq Environmental Study, Baseline 2007-2009, 2011

Rendal, G. Syfiliskrigen, Bacheloprojekt. Institut for kultur og samfundshistorie, Ilisimatusarfik. Nuuk, 2004

Rischel, J. Geografisk dialektfordeling og lydforandring i grønlandsk. Nuuk, 2007. http://www.oqaasileriffik.gl/content/dk/om_gronlandsk_sprog

Skattestyrelsen/Råstofdirektoratet/Råstofdirektoratet. Vejledning til udfyldelse af skatteindberetningsskema. Nuuk, august 2010

Skatte- og velfærdskommissionen. Hvordan sikres vækst og velfærd i Grønland? Baggrundsrapport. Nuuk, Maj 2010

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Skatte- og velfærdskommissionen. Indkomster og indkomstfordeling i Grønland 2007. Arbejdspapir. Nuuk, Juli 2010

Skatte- og velfærdskommissionen. Vores velstand og velfærd – kræver handling nu. Nuuk, 2011

Sparre, L. MIPI – Videnscenter om Børn og Unge. Nøgletal om børn og unge i Grønland. Nuuk, 2009

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Statistics Denmark. Statistical yearbook 2010. Copenhagen, 2010

Statistics Greenland. Befolkning, Dødsfald 2003/2007. Nuuk, 2010

Statistics Greenland. Befolkningens bevægelser 2008. Nuuk, 2009

Statistics Greenland. Befolkningens bevægelser 2009. Nuuk, 2010

Statistics Greenland. Beskæftigelsen 2009. Nuuk, 2010

Statistics Greenland. Erhvervsstrukturen 2007-2009. Nuuk, 2011

Statistics Greenland, Greenland Homerule Government. Greenland in figures 2009. Nuuk, June 2009

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Statistics Greenland. Grønland 2009, Statistisk Årbog. Nuuk, 2011

Statistics Greenland. Grønland 2009, Statistisk Årbog. Nuuk, 2009

Statistics Greenland. Grønlands befolkning 1. januar 2009. Nuuk, 2010 Statistics Greenland. Grønlands befolkning 1. januar 2009. Nuuk, 2011 – www.stat.gl

Statistics Greenland. Indkomstfordeling 2007. Nuuk, 2009

Statistics Greenland. Indkomststatistik 2008. Nuuk, 2010

Statistics Greenland. Kompetencegivende uddannelser 2009. Nuuk, 2010

Statistics Greenland. Ledighed 2009. Nuuk, 2010

Statistics Greenland. Turisme i tal. Nuuk, 2010

Statistics Greenland, Greenland Homerule Government, Greenland in Figures 2010

Statistics Greenland, Greenland Homerule Government, Tourismen 2006-2009

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Statistics Greenland, Greenland Homerule Government, Ledigheden i byerne i 1. halvår 2010

Statistics Greenland, Greenland Homerule Government 2010 www.stat.gl

Study on the social effects of aluminium and power plant development in East Iceland (2010)

The Interorganizational Committee on Principles and Guidelines for Social Impact Assessment, 2003. Principles and guidelines for social impact assessment in the USA. Online: http://www.iaia.org/modx/assets/files/US%20principles%20final%20IAPA%20version.pdf

The North Atlantic Group in the Danish Parliament (2011). Hvorfor Grønlændere bosætter sig i Danmark. Christiansborg, Denmark. Retrieved December 14, 2011, from: http://dnag.sansir.net/get.file?ID=6918

The World Bank, Social Analysis Guidelines in Natural Resource Management. Online: http://info.worldbank.org/etools/library/view_p.asp?lprogram=107&objectid=238462

Transportkommissionen. Transportkommissionens betænkning. Nuuk, 2011. www.transportkommissionen.gl

Tusagassiivik – Grønlands Hjemmestyres informationskontor. Tuberkulose er en folkesygdom. Nuuk, 2007

Udlændingeservice, Tal på Udlændingeområdet pr. 31.10.11 [Online] (first accessed December 19, 2011): http://www.nyidanmark.dk/NR/rdonlyres/E3C50EA0-BD36-4DDD-9C8D- 7AAF44DE1F12/0/senestetalpaaudlomr.pdf

Valgreen, L. En analyse af de sprogpolitiske problemstillinger i det postkoloniale Grønland (1979-2003) - med særligt henblik på den enkeltsprogedes situation i forhold til den førte politik og samfundsdebat. Københavns Universitet. 2004. http://eskimologi.ku.dk/omuddannelsen/baprojekterspecialer/specialer/Lisbeth_Valgreen_ speciale.pdf/

Watkinson, P.I. Social Impact Assessment, Nalunaq Gold Mine. Dec 2009.

Other links referred to in the report:

www.abortnet.dk; Sex & Samfund

www.data.un.org; De Forenede Nationer

www.forsvaret.dk; GLK Grønlandskommandoen, Forsvaret

www.kanukuka.gl; De Grønlandske Kommuners Landsforening

www.kni.gl; Kalaallit Niuerfiat A/S

www.kujalleq.gl; Kommune Kujalleq

London Mining ISUA SIA Page 201 of 233 SIA Report

www.kriminalforsorgen.dk

www.nanoq.gl; Grønlands Selvstyre

www.norden.org/da/publikationer/publikationer/2008-769 Nordic Databank

www.peqqik.gl; Departementet for Sundhed

www.paarisa.gl; Center for Folkesundhed.

www.pi.gl; Center for Sundhedsuddannelser i Nuuk.

www.qaqiffik.gl; Alkohol misbrugscenter i Grønland

www.sermersooq.gl; Kommuneqarfik Sermersooq

www.sermitsiaq.ag , Greenland newspaper