namminersornerullutik oqartussat · grønlands hjemmestyre the home rule government

Aatsitassanut Ikummatissanullu Pisortaqarfik Råstofdirektoratet Bureau of Minerals and Petroleum

Bureau of Minerals and Petroleum Annual Report 2007 page 2

Map of licences at 1 January 2008

Example of map of licences in Greenland. Updated maps are published every two weeks, each 1st and 16th day of the month, at the website of the Bureau of Minerals and Petroleum www.bmp.gl, from where maps may be printed. Preface page 3

In the past 12 months, Greenland has experienced an unprecedented international interest in the mineral and petroleum potential in Greenland's underground. The increased interest from the mineral resources industry has been driven partly by an intensive marketing of the Greenland mineral resources potential, partly by a favourable Kim Kielsen development in the price of oil, minerals and metals. Member of the Home Rule Government of The outcome of the petroleum licensing round in the offshore areas Housing, Infrastructure off Disko-Nuussuaq is a historically decisive event for Greenland's and Mineral Resources future. Some of the world’s biggest oil companies have applied for exploration and exploitation licences in Greenland waters. Companies such as ExxonMobil, Chevron, Husky, Cairn, EnCana and DONG are planning in the years ahead to invest billions in the development of the Greenland petroleum potential.

The development in the area of petroleum is one of the most signifi- The Home Rule Government has initiated comprehensive efforts for cant steps on Greenland’s road to becoming not only a petroleum the purpose of ensuring the highest possible Greenland participation producing country, but also to making the hydrocarbon economy in the present and coming mineral resources projects. In cooperation create a basis for a self-sustaining economy in Greenland. with the mining industry and other relevant institutions, the Bureau of Minerals and Petroleum set up an expert committee for the mining In the course of 2007 alone, hard minerals have seen an increase in sector in 2007. It is the task of the expert committee to coordinate the number of exploration licences of 70%. The number of explora- all aspects concerning education and training initiatives in the mine- tion licences has now reached the highest level ever in the history ral resources sector. In 2007, these efforts resulted, among other of Greenland. things, in a grant of DKK 48 million for starting up a Mining School in in 2008 and in a number of courses in and Within the past couple of years, Greenland has opened the gold mine Nanortalik for miners and contractors. at Kirkespirdalen in Nanortalik municipality and the olivine mine in Maniitsoq municipality. Moreover, it is anticipated that at least a Another important initiative is planning meetings in the towns further five mines will open in the course of the next four years. located in the neighbourhood of the existing and the new mines. The objectives of this initiative include information to the local In addition to direct employment in the mines at a level of 1,500 population on the job opportunities that arise when starting up a employees, the present and the coming mines will generate income to mine, and information to independent contractors on the type of the public sector in the form of income taxes, company taxes and goods and services that are demanded by the mines. In 2006 and dividend taxes. At the same time, the mineral resources sector will 2007 the Bureau of Minerals and Petroleum held meetings in increase its demand for goods and services in the years ahead. Nanortalik, Qaqortoq, Uummannaq, Maniitsoq and Narsarsuaq. This effort will be continued in the years ahead. Income from the oil fields and the coming mines may potentially be so big that they will be able to support a financially self-sustaining I have an optimistic view of the future prospects for the mineral Greenland, if the development is managed in a sensible way. resources sector. We have particularly good opportunities for developing the mineral resources sector into becoming a principal Climate changes as we see them today resulting in warming and industry that may form the basis of a self-sustaining economy. melting of the sea ice around Greenland and at the North Pole, melt- This, however, will require extensive planning – and, not least, ing of Greenland's ice cap and thawing out of the permafrost are all that everybody is joining the effort with an open mind. factors that are expected to influence the mineral resources area.

The climate changes will probably have a positive effect on the future mineral resources exploration, onshore as well as offshore. Higher temperatures and thereby longer field seasons, shorter winter seasons, a longer season of open water, less ice sheet and fewer icebergs are all factors which will greatly increase the oppor- tunities for companies to explore the possibilities of mineral resour- ces extractions in Greenland. page 4 on Mineral ResourcesinGreenland The JointCommittee The development ofthemineralpotentialplaysanimportantpartforcommunityinGreenland. reconnaissance andexploration licences. Government andtheHomeRuleGovernment ine.g.issuesongranting the mineral resourcesareaandtosubmitrecommendationsthe The purposeoftheJointCommitteeistofollow thedevelopment in Geenland HomeRuleGovernment (Landsstyret)forfour-year terms. Queen aftercommonnominationfromtheGovernment andthe Parliament, respectively. Inaddition,achairmanisappointedby the appointed by theGreenlandParliament(Landsting)andDanish day termstheJointCommittee–consistsoffive politicalmembers The JointCommitteeonMineral ResourcesinGreenland–every on Mineral ResourcesinGreenland(theMineral ResourcesAct). down partlyintheActonGreenlandHomeRuleand The detailedregulationsonthemineral resourcessystemarelaid related tothemineral resourcesactivities. mineral resourcessystemandishandlingthecurrentadministration Petroleum (BMP)undertheGreenlandHomeRuleadministers resources areacanbedebated. The BureauofMinerals and Greenland andDenmark,wherecentral issuesconcerningthemineral established asapoliticalforumconsistingofpoliticiansfrom The JointCommitteeonMineral ResourcesinGreenlandhasbeen distribution ofincomefromexploitation ofmineral resources. and theGreenlandHomeRule,adecisionhasbeenmadeon field ofmineral resources.Moreover, between theStateofDenmark have jointdecisioncompetenceforsignificantdispositionsinthe Danish-Greenlandic concern. This infersthatGreenlandandDenmark political responsibilityforthemineral resourcesareaisajoint The Greenlandmineral resourcessystemestablishesthatthe chairmanship. the two deputychairmen.In2007,fourcaseswere heardby the by thechairmanshipofJointCommittee,i.e.chairmanand area expansions andtransfers areprocessedbetween meetings Less complex casessuchasapplicationsfornew licencesand During 2007,fourjointmeetingswere held. (Danish MinistryofClimateandEnergy) Thomas Egebo,PermanentUndersecretary (Department ofEnvironmentandNature) Alfred EmilRosingJacobsen,Director Kaj Kleist,ManagingDirector and ,respectively: As delegates,thefollowing officialsparticipatedfromGreenland Hans ChristianSchmidt(DanishLiberal Party) Anne GreteHolmsgaard(SocialistPeople'sParty) Aase D.Madsen(DanishPeople’s Party) Flemming Hansen(Conservative Party) Niels Sindal(SocialDemocratic Party),DeputyChairman Danish members Per Berthelsen(Democrats) Ellen Christoffersen(Attasut) Josef Motzfeldt(IA) Ruth Heilmann(Siumut) Jørgen Wæver Johansen(Siumut),DeputyChairman Greenland members (Secretariat oftheGreenlandHomeRuleGovernment) Kim Andersen,(DanishLiberal Party),Chairman of theJointCommittee: At theendof2007,following personswere members HUDSON RESOURCE of theBureauMinerals andPetroleum Objectives andassignments and thepublic. tive working environmentbetween themineral resourcesindustry framework formineral resourcesactivitiessoastocreate aproduc- number ofinformationactivities,toprovide aclearandtransparent people ofGreenland. The BMPthereforeendeavours, througha resources areathereforehastotake placeindialoguewiththe country’s primarybusinessareas. The development inthemineral Greenland wishestomake themineral resourcesindustryoneofthe tion tothemineral industry. an importanttoolinproviding comprehensive andcurrentinforma- selected oilandmineral companies.Inaddition,theBMPwebsite is fairs andexhibitions andby directmarketing initiatives aimedat potential inGreenlandthroughparticipationinternationaltrade in Greenland.Concertedeffortsaremadetomarket themineral intensify theinterestofprivatecompaniesinexploration activities on themineral potential.Indoingso,theauthoritiesactively seekto implementing anumberofprojectswhichcanprovide new knowledge The BureauofMinerals andPetroleumcontributestofinancing an efficientadministration intheareaofmineral resources. one placetoobtainthenecessarylicences.Aprinciplethatensures stration andthemineral resourcesindustryonlyhastoapplythis mineral resources. The BMPistheauthoritative bodyforalladmini- prospecting, exploration andexploitation licencesintheareaof One ofthemaintasksforBMPisday-to-daymanagement international mineral resourcesindustry. ting ofthemineral resourcespotentialinGreenlandtowards the Greenland. Itistheobjective oftheBMPtoensurequalifiedmarke- is responsibleforthemanagementofmineral resourcesareain The GreenlandHomeRule’s BureauofMinerals andPetroleum(BMP)

NUNAMINERALS

duce self-government in2009. of repatriationtheareawhenGreenland,asanticipated,willintro- new actonminerals andpetroleumhasbeeninitiatedforthepurpose from apotentialfutureoilextraction. Finally,thepreparation ofa a Minerals andPetroleumFundwiththeobjectofsavingupincome on the legalareahasbeenimplemented,includingadraft forlegislation ble gainstosocietyhasbeenintensified.Moreover, arearmamentin socio-economic area,justastheeffortofsecuringhighestpossi- Bureau ofMinerals andPetroleumisabletoincreasetheeffortin of new membersofstaff. With thisincreasedappropriation,the Greenlandic FinanceActduring2007and2008fortheemployment Petroleum hasbeengranted anincreasedappropriationunderthe economic gainsfromtheprojects,BureauofMinerals and many licencesandthenew miningprojects,andtosecurethesocio- administration, soundsecurityandenvironmentcontrolwiththe licences totheoilindustry.Inorderensurecontinuedefficient for hardminerals andamultiplicationinthenumberofoffshore fold increaseinthenumberofexploration andexploitation licences In 2007,theBureauofMinerals andPetroleumexperienced atwo- significant partner. Authority (DEA),justasthepublicoilcompanyNUNAOIL A/Sisa Environmental ResearchInstitute(NERI),theDanishEnergy Survey ofDenmarkandGreenland(GEUS),theNational Bureau ofMinerals andPetroleumcooperates withtheGeological When processingcasesrelatingtomineral resourcesactivities,the WWW.AFOTO.GL page 5 page 6 Hydrocarbons

Exploration and exploitation licences for Block 4 and Block 6 were Strategy signed by the companies in connection with a ceremony in Nuuk on As a consequence of the high level of expenses for exploration in 11 October 2007. Greenland, it is of great importance that a significant part of the overall exploration activities is done by the oil industry. It is there- ExxonMobil is the world's biggest oil company and has world-wide fore a central strategic aim to make the industry interested in invest- expertise in oil and gas exploration and production with headquar- ing in oil exploration in Greenland. ters in Irving, Texas. ExxonMobil has a daily production in excess of 4 million barrels of oil equivalents. ExxonMobil has more than 40 Consequently, it is important that the authorities announce clear years' relevant experience with operations in arctic areas. objectives with regard to how, when and on what terms and condi- tions exploration and exploitation licences will be offered in Chevron's headquarters is in San Ramon, California and the company Greenland. The Bureau of Minerals and Petroleum has described is the second biggest energy company in the US with oil activities in these politically adopted strategic plans in ”Hydrocarbon Strategy of more than 90 countries and a production of more than 2.5 million 2003 (updated in the strategic statement ”Social aspects of the barrels of oil equivalents per day. Chevron has been active in the two exploration and exploitation of oil and gas in Greenland” from 2005). oil producing fields of Hibernia and Hebron offshore Eastern Canada, where they have acquired experiences in operating in icy waters with On this background and within the framework of the politically many parallels to the Disko West licensing area. adopted exploration strategy for Greenland, the Bureau of Minerals and Petroleum has implemented a series of action plans and time Husky is a Canada-registered oil company with headquarters in schedules directed at the oil industry. Very concrete results of these Calgary, Canada. The company's daily production is in excess of initiatives were the implementation of the licensing rounds in 2002, 350,000 barrels of oil equivalents. Until now, Husky has not been 2004, 2006 and 2007. active in Greenland. On the other hand the company has relevant experience from the western part of the Labrador Sea. Husky is an operator of and holds a 72.5% interest in the ”White Rose” oil field Disko West Licensing Round offshore Eastern Canada, which has a production rate of well over The first phase of the Disko West licensing round 2006 in the off- 100,000 barrels of oil equivalents per day. shore area between 67ºN and 71ºN off Disko-Nuussuaq in West Greenland resulted in 2007 in the signing of four hydrocarbon DONG Energy is Denmark's biggest energy company with headquar- exploration and exploitation licences to the oil companies ters in Hørsholm and performs activities in all areas of energy. ExxonMobil, Chevron, Husky, DONG and NUNAOIL A/S. DONG’s oil and gas activities are mainly concentrated in the North Sea area where they have been active for more than 25 years. As a result of this, Husky was granted Block 5 (Kangerluk) and Block DONG’s daily production rate is presently at 48,000 barrels of oil 7 (). Block 5 and Block 7 are 10,138 and 10,929 sq km, equivalents. DONG has previous experience as a partner in the respectively. Husky has a licence share of 87.5% of both licences Greenland Qulleq-1 well. and acts as the operator. NUNAOIL A/S is a ‘born partner’ of both licences with shares of 12.5%. The two exploration licences were Second phase of the Disko West licensing round 2006 was formally signed at a ceremony in Nuuk on 19 June 2007. As part of meeting opened on 1 August. Prior to the formal opening of the licensing these work obligations for Block 7, Husky collected aerogravimetric round an opening meeting was held by an event in London on 13 June. and aeromagnetic data in 2007. The purpose of the pre-meeting was to inform interested oil companies about the geological, physical and environmental condi- In mid-April 2007, ExxonMobil entered into agreement with Husky tions and the licence conditions for the four licence blocks in the on partnership in Block 6 with an area of 13,213 sq km and located Disko West area that were not granted during the first phase of the immediately south-west of Disko Island. Both companies have an licensing round. ownership interest of 43.75%, whereas NUNAOIL A/S is a born partner with a share of 12.5%. ExxonMobil will be in charge of the On the opening day of the second phase of the licensing round, the project management. Bureau of Minerals and Petroleum received an application from the company Cairn Energy PLC for a grant of an exploration and exploita- In a similar way, ExxonMobil, Chevron and DONG entered into a tion licence for Block 1 and Block 3. Block 1 is located north-west of partnership about Block 4 with an area of 13,957 sq km and located Disko and has a total area of 11,063 sq km. Block 3 borders on the immediately west of Disko. It has been agreed that DONG will be in southern part of Block 1 and has a total area of 11,961 sq km. Under charge of the project management in the first part period. The the current licence conditions covering both of the blocks applied for, companies join in the partnership with an interest of 29.17% to each Cairn Energy PLC will, through their subsidiaries, receive an owners- and 12.5% to NUNAOIL A/S. hip interest of 87.5% whereas NUNAOIL A/S will join both licences as a ‘born partner’ in the exploration phase by an interest of 12.5%. Mike Watts, CairnEnergyPlc,andKimKielsen,Memberof theHomeRuleGovernment, signexploration andexploitation licenseso their licences. The obligationsinthesecondpartperiodwilltypically perform thework obligationsforthesecondpartperiodorreturn of thefirstpartperiod,licenceholdersshallundertake eitherto for alllicencesissubdividedintothreepartperiods.Beforetheend The licencesgranted includeanexploration periodof10years, which tions on1February2008. Disko West licensingroundwillbeclosedforsubmissionofapplica- blocks originallypre-definedaslicensingblocks.Phasetwo inthe At theendof2007therewasonlyoneblockremainingeight application wasstillbeingprocessed. Equatorial GuineaandtheRepublicofCongo.Atyear-end, the company isalicenceholderofpromisingexploration areasin field andseveral otheroffshoreexploration licences.Inaddition,the Norway, thecompanyisinvolved inthedevelopment ofthe Volve fields andexploration activitiesonshoreaswell asoffshore.In producing companiesin Tunisia withproduction,development of of Congo(Brazzaville). PA Resourcestodayisoneofthebiggestoil with interestsinNorway, Tunisia, EquatorialGuineaandtheRepublic west ofSisimiut.PA Resourcesisafast growing oilandgascompany licensing areawithanof11,071sqkmandlocatedimmediately an exploration andexploitation licenceforBlock8oftheDisko West application fromtheSwedish companyPA Resourcesforagrant of On 27September, theBureauofMinerals andPetroleumreceived an 25,000 barrelsofoilequivalentsperday. barrels ofoilequivalentsperday,whichCairn´ssharewasapprox. for thefieldsoperated by CairninSouth-EastAsiaapprox. 105,000 East Asia:India,BangladeshandNepal.In2006theproductionrate gas activitieshave primarilybeenfocusedonthecountriesinSouth- Edinburgh, Scotland.Duringthepasttenyears, thecompany'soiland Cairn EnergyPLCisaBritishoilcompanywithheadquartersin 6,882 sqkmto100,264andisnow 15timesbigger. five. The overall areaoftheoillicenceshasgoneupfrominitial licences hasincreasedfrominitiallytwo to10,i.e.amultiplicationof In thecourseof2007,numberexploration andexploitation potential inGreenland'sunderground. also involved increasedinternationalfocusonthehydrocarbon which –inadditiontoresultingmanynew exploration obligations– It isassessedthatithasbeenavery successfullicensinground, out tobeagreatsuccess. subsequent phase2following an"open-door"procedurehasturned companies followed by aphase1ongeneral licenceconditionsanda strategic locations. The introductoryprequalificationofinterested documentation ontheweb siteandholdingopeningmeetingsin marketing material,presscoverage, presentationofthelicence concerns marketing atinternationaloilconferences,publicationof be usedforfuturelicensingroundsinGreenland. This particularly The licensingroundhasprovided manyusefulexperiences thatmay mandatory. will continueintothenext partperiod,whereanexploration drillis years. Within thatperiod,thecompanieshave todecidewhetherthey data. The firstpartperiodwillbecompletedafterthreeorfour mics, aerogravimetric andaeromagneticdataothergeophysical tion willbemadeof23,000km2Dseismics,1,000sq3Dseis- anticipated thatduringthefirstpartperiodoflicencesacollec- Extensive explorations now follow intheDisko West area,whereitis period orreturntheirlicences. undertake eithertoperformthework obligationsforthethirdpart before theendofsecondpartperiod,licenceholdersshall include onedrillingandthecollectionofadditionaldata.Likewise, n 9January2008 page 7

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ing the creation of a GIS database. In addition to this, Cairn is to Expansion of the Open Door area implement HSE plans and contribute financially to environmental Today, the Open Door areas cover the sea area off South-West studies. Greenland between 60ºN and 63ºN and Jameson Land in East Greenland (see figure). The Open Door areas are characterised by The licences are each divided into three part periods with an having a low data coverage and are therefore connected with a high attached work programme. An Open Door licence involves an exploration risk. Moreover, the sea area is connected with difficult obligation for the licence holders that they perform activities in operative conditions in connection with relatively big sea depths and accordance with the work programme if they choose to continue pack ice. their exploration into the following part period. Alternatively, a licence holder will have to return his exploration licence. The areas are covered by a special procedure, where applications for hydrocarbon exploration from 1 October to 31 May may be submit- The Bureau of Minerals and Petroleum has noted an increasing ted and where the applications are dealt with in the order in which interest in the sea south of 63ºN. Therefore it was recommended in they are received. Applications received in the period 1 June – 30 December 2007 to the Joint Committee that the present Open Door September are recorded as being received on 1 October. area be extended to include the sea area south of 60ºN (see Figure). The Joint Committee approved this recommendation and it is On 17 August 2007 the Bureau of Minerals and Petroleum received expected to open for applications some time in 2008. an application for two Open Door areas from the British oil company Cairn Energy PLC. On 9 January 2008, Cairn in partnership with NUNAOIL A/S was granted exclusive licences for exploration and exploitation of hydrocarbons in these areas (see figure).

NUNAOIL A/S join as a ‘born partner’ with an interest of 8%. Block 1 (Saqqamiut) is 10,090 sq km, whereas block 2 (Kingittoq) is 12,031 sq km.

Cairn Energy PLC and NUNAOIL A/S shall undertake, during the first part period of four years, to collect both seismic and aerogravimetric data, and to make various technical and geo-scientific studies includ-

The open-door area is extended by the off-shore area south of 60ºN The Russian nuclear-powered ice-breaker ’50 Let Pobody’ of thelicensingarea. KANUMAS West areawhichisimmediatelyinthenorthernextension West licensingroundhasincreasedtheindustry'sinterestin lents maybeexploited inNorth-EastGreenland.Likewise, theDisko estimated thatonacommercialbasis,31billionbarrelsofoilequiva- one reasonbeingthattheAmericangeologicalsurvey USGShas The easternKANUMAS areahasseenheavyinternationalfocus, licence willstillapply,includingthepreferentialposition. acquired datawillcontinueandtherightsobligationsunder ration licencehasexpired, butthework ofthegroupwithsale North-West Greenlandisputupforlicensing. The KANUMAS explo- activated iftherighttopetroleumexploration inNorth-Eastand position fortheKANUMAS group. This preferentialpositionwillbe was balancedby granting thecompaniesaspecialpreferential licence holder. Aconsiderable exploration obligationinthelicence licencedid not includeanyexclusive rightstothe The prospecting being granted toagroupconsistingofnumberoilcompanies. East Greenland. The KANUMAS projectledtoprospectinglicences hydrocarbons inalimitedoffshoreareaoffNorth-West andNorth- at theendof1989. The projectincludesprospectingsurveys for KANUMAS, theregionalseismicsurveying programme, wasinitiated these areasby theendof2008. to theJointCommitteeaconcreteproposalforlicensingpolicyin North-West andNorth-EastGreenland)forthepurposeofpresenting a development oftheso-calledKANUMAS areas(theseaareaoff In December2006theBureauofMinerals andPetroleuminitiated The KANUMAS project c odtosi h rtcOeno uut20 Collectionofdataabouttheseabed Ice conditionsintheArcticOceanon1August2007

NUNAOIL exploitation inthearea. of thesignificanceseaiceandicebergstoexploration and tion ofhydrocarbons. Inaddition,anumberofstudieswillbemade will bepreparedoftheimplementationexploration andexploita- sustainable basis.Incontinuationofthis,socio-economicevaluations hydrocarbon activitiesareimplementedonanenvironmentally of theregionwillbeimplementedforpurposeensuringthat the licences.Moreover, astrategic environmentalinvestigation (EIA) evaluation ofthefiscalconditionsthatwillbeattachedtooffering eventual marketing oftheareas,andpartlyin consideration ofan active petroleumsystemintheareas.Partlyforreasonsof analyses withaview tobetterdocumentationoftheexistence ofan The BureauofMinerals andPetroleumwillimplementgeological projects thatwillimprove theknowledge basisintheseareas. present totheindustryanumberofdesirable environmentandice required. Researchinstitutionswere given theopportunityto ration andexploitation activities,andwhichfurtherinitiatives are what challengesmaybeanticipatedinconnectionwithfutureexplo- Copenhagen intheautumnof2007,whichincludeddiscussionson rals andPetroleumheldanIce,Climate&Environmentconferencein of areaswillbeacquiredinadvance. Therefore theBureauofMine- sible futurelicensing,itisassumedthatnew knowledge inanumber In connectionwiththepreparation oftheKANUMAS areasforapos- prospective licences. required largeinvestments by theindustry.Seealsochapteron aerogravimetric datain2007. The datacollectionintheseareashas large quantitiesofcommercialseismicsandaeromagnetic The interestinNEandNW Greenlandhasresultedinthecollectionof

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NUNAOIL page 10 South-West Greenland. exploration andexploitation licencesintheOpen Doorareaoffshore connection withtheDisko West LicensingRoundPhase2andtwo addition beengranted two exploration andexploitation licencesin Cairn EnergyPLC,headquarteredinEdinburgh,Scotland,has and gasstorage operator, with headquartersinCalgary,Canada. EnCana isNorthAmerica'slargestindependentnatural gasproducer additional exploration activitiesuptotheendof2009. means thatthecompanieshave comittedthemselves toperform 31 December2007. The continuationintothesecondpartperiod second partperiod. The firstpartperiodforbothlicencesexpired on several companiesoftheexploration riskatthetransition tothe The reasonforthisisarequirementsharingthecostamong company's two exploration andexploitation licenceswest ofNuuk. partner tosharetheexploration costsinconnectionwiththe For quitesometime,EnCanaCorporation hasbeenlookingfora Franklin’ licences. will continuetobeanoperator onboththe’’and’Lady an ownership interestof12.5%inbothlicences.EnCanaCorporation interests of47.5%inbothlicences,whereasNUNAOIL A/Sstillholds Following thefarm-out process,EnCanaCorporation hasownership granted a40%ownership interestintheLadyFranklin licence. in theAtammiklicenceandCapricornLadyFranklin Limitedwas Capricorn AtammikLimitedwasgranted a40%ownership interest subsidiaries ofCairnEnergyPLC. Limited andCapricornLadyFranklin, whichareboth100% offshore West GreenlandtothecompaniesCapricornAtammik ’Atammik’ and’LadyFranklin’ exploration andexploitation licences In 2007,EnCanaCorporation successfully”out-farmed” their EnCana Corporation The Disko West LicensingRound The Swedish ice-breaker ’Oden’andthe navigationroutefortheLOMROGexpedition northandnorth-eastofGreenland magnetic/gravimetric datainEastGreenland.Atotalof52,310km survey endbeforetime.Moreover, TGS-NOPEC hascollectedaero- problems withtheequipmentduetocoldweather madethe ced collectionof6,665kmseismicdataintheBaffinBay.Minor weather conditions.Inaddition,inmid-August TGS-NOPEC commen- collection wasterminatedbeforetime,primarilyduetoadverse 53,793 kmlinesintothearea. The aeromagnetic/gravimetric data Bay. Inmid-July2007, TGS-NOPEC commencedflyinginatotalof collected aeromagnetic/gravimetric dataandseismicsintheBaffin TGS-NOPEC (now TGS-Wavefield) GeophysicalCompanyASA has Cambridge ArcticShelfProgramme. which hasbeenthefocusforongoingfield-basedsurveys inthe was toreachdown intotheJurassic periodoftheHareelvformation were selected,Ostraelv andHareelv. The objective ofthe drillings southern JamesonLandclosetoConstablePoint. Two drillingspots system. The areaselectedfortestingthedrillstringsystemwas work inEastGreenland. The purposewas totestanew drillstring In August2007,CambridgeArcticShelfProgramme carriedoutfield The fieldwork willberesumedinApril2008. earlier thanplanned.Atotalof11,366kmdatawascollected. made itnecessarytodiscontinuethedatacollectionsomewhat seismic data.Adverse weather conditions,particularlyfogandsnow, geology, andthereforeconstituteavery importantsupplementto netic surveys provide avery detailedimageoftheunderground Disko-Nuussuaq in West Greenland.Aerogravimetric andaeromag- Limited hascollectedaerogravimetric andaeromagneticdataoff In cooperation withSanderGeophysics,HuskyOilOperations potential withintheframework ofprospective licences. In 2007,several surveys were implementedoftheoilandgas Prospecting licences

RÅSTOFDIREKTORATET

RÅSTOFDIREKTORATET concluded attheendofSeptember2007. data wascollected. The collectionlasted10weeks andwas to bepublishedinJanuary2008. 2 and3inAMAP’s OilandGasAssessmentreport,whichisexpected the BureauofMinerals andPetroleumhascontributedtoChapters governments aroundthepollutionofArctic.Inthisconnection, whose primaryobjectistoofferadvicetheArcticcountries' Programme). AMAPisoneofsixworking partiesoftheArcticCouncil Arctic Council,includingAMAP(ArcticMonitoringandAssessment resources activitiestakingplaceinotherworking groupsunderthe co-operation onmattersrelatingtotheenvironmentandmineral how Greenlandadministersthemarineenvironmenttoday. in theproject’Integrated OceanManagement’andalandchapteron connection, theBureauofMinerals andPetroleumhasbeeninvolved for adequateimplementationofshippingintheArcticareas.Inthat ments ontheprotectionofArcticseaenvironmentandrules environment. Inaddition,PAME evaluates the international agree- Arctic Council.PAME works withtheprotectionofArcticmarine work group(ProtectionoftheArcticMarineEnvironment)under The BureauofMinerals andPetroleumisamemberofthePAME Arctic Council ice conditionsandthesurvey wasdiscontinuedearlyOctober2007. August/September 2007. The collectionwashamperedby difficult collected 407kmseismicdataover afour-week periodin Offshore North-EastGreenland,NorskHydro ASA (now StatoilHydro) The BureauofMinerals andPetroleumalsotakes partinthe proposal in2014. which willbeusedinthepreparatory work fortherequirement collection ofvaluableseismicdataandothergeophysicaldata, be currentlyadjusted.However, theexpedition succeededinthe tion washamperedby iceconditionsandtheexpedition planhadto assisted by theRussianicebreaker ”50LetPobedy”. The datacollec- never sailedbefore. The Swedish icebreaker "Oden"usedwas areas inwhichitwashardtooperate andwheresurface shipshave Greenland wasmadein2007. The expedition tookplaceinoffshore exploration expedition intheArcticareasnorth andnorth-eastof In connectionwiththecontinentalshelfproject,asix-week polar tial intheareasconcerned. also contributetoincreasinginformationonthehydrocarbon poten- and two areasaroundtheFaroeIslands. The knowledge collectedwill depths andthesubsurface geologyinthreeareasaroundGreenland by meansofseismicdata,gravimetric andechomeasurementsofsea shelf aroundGreenland.Comprehensive surveys have beeninitiated view topossiblypresentingclaimsforextending thecontinental tions onthedeterminationofGreenland'scontinentalshelfwitha cal aspectswithotherDanishandGreenlandauthoritiesinstitu- claim. The BureauofMinerals andPetroleumco-operates ontechni- Convention oftheLawSeaby thecountrypresenting Such claimsmustbepresentedwithintenyears ofratification ofthe on theextent ofthenatural continentalmarginofthecontinent. opportunity ofstatingclaimsbeyond 200nauticalmiles,depending the Sea",alsocalledUNCLOS76,provides coastalstateswiththe the UNConvention ontheLawofSea:"Convention ontheLawof took effectintheRealmasfrom16December2004.Article76 on theLawofSea16November 2004andtheConvention Denmark, actingonbehalfoftheRealm,accededUNConvention After priorconsentby Denmark,GreenlandandtheFaroeIslands, The ContinentalShelfProject

RÅSTOFDIREKTORATET page 11

RÅSTOFDIREKTORATET page 12 to 2milliontonsfromthedepositinFiskefjorden. usual quarries. The intendedplanisforanannualextraction ofup The extraction isdoneinasurface quarryasitisknown alsofrom company changeditsnamefromSeqiOlivineA/StoMinelcoA/S. of LKABwhichisaSwedish-owned miningcompany.In2007,the to SeqiOlivineA/Swhichis100%owned by MinelcoAB,asubsidiary Fiskefjorden intheManiitsoqmunicipality. The licencewasgranted of theindustrialmineral olivinefromtheSeqinnersuusaqdepositin On 30June2005,alicenceofexploitation wasgranted forextraction Extraction ofolivineinFiskefjorden Exploitation licences of themineral resourcesexploration. 135 millionDKK.Soinactualfact we have avery optimisticimage million DKKwasspent.In2006,totalexploration costsamountedto Greenland have beenmultipliedsince2003,whereanamountof44 covered anareaof23,379sqkm. Total investments inexploration in exploration licenceshadbeengranted. The exploration licences licencesand63 At theendof2007,atotal14prospecting in gold,molybdenum,zincanddiamonds. the highestfigurein14years. The interesthasbeenparticularlyhigh In 2007,atotalof35new exploration licenceswasgranted whichis of oil,minerals andmetals. resources potential,partlyby afavourable development intheprice driven partlyby anintensive marketing oftheGreenlandmineral The increasedinterestfromthemineral resourcesindustryhasbeen Progress intheminerals areainGreenlandwassignificant2007. Minerals The olivinemineinFiskefjorden startedupactualproductionin2007

RÅSTOFDIREKTORATET and moundingsandissomewhat higher. 4m tonsperannum,whereasthemarket forsandblasting There isaworld market forolivineasaslaggingofapprox. foundry sand. steel productionasaslagging,forsandblastingand as ahighmeltingpointanddensity.Olivineisusedin rich members,respectively. The materialhasqualitiessuch forsterite andfayalite whichrepresentmagnesiumandiron- parts oftheglobe.Itconsistsamixtureminerals Olivine isasilicatemineral withnatural occurrencesinmost Olivine tons originallyestimated. that theextent oftheolivinedepositisbiggerthan100million to furtherdeterminetheextent ofthedeposit. The resultsindicate In thesummerof2006,companymadecomprehensive drillings storage fortheextracted olivinehave beenbuilt. for 60personswasmade.Inaddition,crushingplant,quaysand In 2006,anexpansion oftheaccommodationandservicefacilities North Americanmarket. company isalsoplanningtointroducetheGreenlandolivine The olivinewillmainlybeshippedtotheEuropeanmarket, butthe freighters withaloadcapacityofupto50,000tons. ation ofolivinefromFiskefjorden takes placeinbulkonboard fractions andqualitiesaccordingtotheconcreteuse. The transport- Prior toshipping,theraw olivineiscrushedandgraded indifferent

MINELCO Approx. 50peopleareemployed attheolivinemine. produce around450,000tonsofolivinein2008. had anolivineproductionofapprox. 620,000tonsandexpects to start-up ofactualproductionolivinebegan.In2007,MinelcoA/S From March2007,allinfrastructure hasbeencompletedanda 20-30,000 tonsandshippedtoNuggetPond. The materialisthenloadedonboardbulkcarrierswithacapacityof from Western BulkCarriers,withwhomCrew hasanannualcontract. mine. When thequantityofmaterialissufficient,ashipordered at aquaystructureestablishedintheSaqqaaFiord11kmfrom The materialiscarriedon25-tonlorriestoa60,000-tonstorage site extraction amountedto137,000tons. In 2006,108,000tonsoforewasextracted, whereasin2007theore for theminetooperate ataprofit. large quantitiesoforemustbeextracted, transported andprocessed content isonly16–25grams ofgoldperton,whichmeansthatvery of afew millimetres.Even thoughitisavery fine deposit,thegold small grains thesizeofwhichvariesfrommicroscopictoadiameter 0.1–2.0 metresthickwithanaverage of0.7m. The goldisfoundas quarts veins cuttingdown throughtherock. The individualveins are Nalunaq isavery finegolddepositwhichisfoundinconnectionwith Pond inNewfoundland. Narcea inSpain.From2007,theorehasbeenreprocessedatNugget until 2007thegoldorewasshippedtoreprocessingplantatRio three years. The mineislocatedapprox. 11kmfromthecoast,and Nalunaq GoldMineA/S Gold ProductioninGreenland has now beeninproductionformorethan

MINELCO Helicopter reconnaissanceintheAmmassalikregion Approx. 140personsareemployed attheNalunaq GoldMine. is thesoleowner oftheNalunaqgoldmine. already holds82.5%ofthesharecapital. Thereby, Crew GoldCorp. ding of17.5%NalunaqGoldMinetoCrew GoldCorporation, which In October2007NunaMinerals A/Schosetosellofftheirsharehol- Nugget Pond mineinnorth-easternNewfoundland. Nalunaq GoldMineA/S. The plantisinconnectionwiththedisused subsidiary ofCrew GoldCorp,whichistheparentcompanyof The plantinNewfoundland isowned by Crew GoldCanadaLtd.,a involve tooheavyinvestments forthemine. processing theoreataplantinNewfoundland, asalocalplantwould For financialreasonsthecompanychosetoinvest inasolutionwith plant atRioNarceainSpainwascloseddown at31December2006. option forexternal reprocessing. The backgroundwasthattheusual invest insettingupalocalreprocessingplantorfinddifferent 2006 wastheyear whenthecompanyhadtodecidewhether tons oforewithafinenessupto18g/t. a finenessof21g/tandpossibleadditionalreserve of1,670,000 According totheestimatethereisapprox. 400,000tonsoforewith page 13 NUNAMINERALS page 14

Exploration Licences Molybdenum Ruby Molybdenum is an alloy metal which in nature is most True North Gems Inc. is looking for rubies at Qeqertarsuaatsiat in frequently found as the mineral molybdenite; the metal

West Greenland. In 2007, the company, among other things, made combination with sulphur (MoS2). The mineral is very soft drillings and took samples in the area. A total of 27.8 tons of the with a hardness of 1-1½. This means that by contact it rubs ruby- and sapphire-rich rock at Aappaluttoq was extracted in 2007 off in grey/black and that it is suitable as a lubricant. for the purpose of assessing the financial potential of the deposit. Another important use is as an alloy to iron for the This location is the most promising one in the area and the production of very strong steel products. mineralised zone is between one and two metres wide. In addition, the company has extracted 3.6 tons of samples from other locations Molybdenite is found on several localities in Greenland, but in the area. The sample material was sent for analysis and classi- the deposit at Malmbjerg in East Greenland is particularly fication in Canada. The shipment was made under the supervision important as this is one of the largest in the world. of BMP. The multiple increase in the price of molybdenum in recent years has created renewed interest in Greenland's deposits. The raw material is divided into material of gem quality (’gem grade’) and material of an inferior quality (’near-gem grade’). The rubies and Molybdenum sapphires of gem grade are then divided into different fractions In the summer of 2007, International Molybdenum Plc. carried out based on the quality of the gems. exploration at Malmbjerget near Ittoqortoormiit in East Greenland. The work was focused on the rounding-off of a cost-benefit analysis In 2007, the company drilled more than 5,000 metres in 50 bores. and on whether it will be possible today to exploit material These drillings have confirmed the presence and extent of previously classified as waste. the mineralised zone. An intensive drilling programme is planned for 2008. The classification was made by means of core data. The company made 31 drillings totalling 4,596 bore metres. True North Gems Inc. will present a cost-benefit study in 2008 and plan to apply for an exploitation licence. An open mine will Of these, the 8 holes were drilled from the surface, and have a total open at the earliest in 2009 and is expected to employ 40 persons. length of 1,851 bore metres. The drillings were made to examine the surface geology and storage areas at the proposed mine area. 9 drillings were made, totalling 2,367 metres, from within the mine to examine the molybdenum content. The remaining 378 metres were drilled as 14 short bore holes for the purpose of clarifying the geotechnical conditions at the proposed locations of plant, tailings, crushing system and harbour. Samples were taken at 3-meter inter- vals for all 31 cores, and these samples were sent for analysis with Acme Analytical Laboratories Ltd. in Vancouver, Canada.

On the basis of the field work in 2006, the company has selected Ruby potential plant, harbour and tailing localities etc. to find the best Ruby is the description of suitable areas for establishing the infrastructure around a mine.

a strong red variety of the mineral corundum (Al2O3). Focus was directed at the Schuchert Valley to the south, as this Corundum in other colours is referred to as sapphire, with would be an easier spot for constructing roads and a harbour. the colour mentioned first, e.g. blue, colourless, pink etc. Ruby is a gemstone with hardness 9, i.e. the second hardest Malmbjerget will be the most profitable as an open mine and there- mineral in nature after diamond. Ruby is one of the most fore this is the proposed model. The company is planning to transport coveted gemstones in the world, with prices often exceeding the molybdenum-concentrate 65 km to a harbour and ship it. those of diamonds. The company also made a topographical mapping around the plant Rubies from Fiskenæsset have been known since the 1960’s. locality by means of GPS, and a number of baseline studies of On this locality, ruby often occurs along with pink sapphire, vegetation, wildlife, archaeology, water and bathymetrics. which both count as coveted gemstones. production. 600 personsintheinitialphaseand300-400employees during tion licenceandtoimplementproductionin2011withapprox. International MolybdenumPlc.isplanningtoapplyforanexploita- the minecanproduce25,000-30,000tons/dayfor15to20years. 0.12% molybdenum.Acost-benefitanalysismadeassessesthat The measuredresourceisnow 217milliontonswithafinenessof The MaarmorilikminenorthofUummannaqisexpected tore-openin2008 production lifeof7to10years. start asanundergroundmineandendupopenwitha production in2008. The minewillhave approx. 110employees and The companyisplanningtoapplyforanexploitation licenceandstart vegetation, archaeologyanddeep-seameasurements. mine. Inaddition,environmentalassessmentsaremadeofwildlife, study whichistodeterminewhetheritprofitablere-openthe At thebeginningof2008,companywillsubmitacost-benefit of zincmetaland61,000tonsleadmetal. the areaaroundminearenow expected tocontain160,000tons upwards by 66%forzincand114%lead. The mineralisations in tion atthelocationcalledSouthLakes Glacierhasbeenreadjusted come ofthesedrillingsisthatthefinenessentiremineralisa- From JunetoSeptember, 8,142mwere drilledin37holes. The out- left inthemineandthereby make itprofitabletore-openthemine. Greenland. The aimofthework wasto addnew resourcestotheore around theabandonedlead-zincmineatMaarmorilikinNorth-West Angus &RossPlc. Lead andzinc has madeextensive fieldwork in2007and that productionwillextend over decades. be constructedfromthenearby town ofQaqortoq.Itisexpected crushing isexpected totake placeclosetothemineandaroadwill Rimbal Pty.Ltd.isalsoplanningtoopenaprocessingplant. The from thelocalarea. The minewillemploy upto80personsand60outofthesewillbe expects tobeableproduce1milliontonsofmaterialperyear. production willcommencein2009or2010,attheearliest.Rimbal apply foranexploitation licencein2008.Itwillbeanopenmineand The companyisplanningtopresentacost-benefitstudyand and magneticsurveys inthearea. In 2007,thecompanymade4,000mdrillingsandair-bornradiometric The resourceisassessedat2.95billiontons. used inbatteries,etc.,andoftenreplacingmorepoisonousmetals. The contentofthemineral eudialyteincludeszirconiaandrare soils called Kringlerne. Greenland. The areaholdsalargedepositofeudialytesatlocation exploration licenceatNakaalaaqwest ofNarsaqinSouth-West In 2005,theAustralian company Eudialyte Rimbal Pty.Ltd. ANGUS & ROSS PLC was granted an page 15

ANGUS & ROSS PLC page 16 Hudson Resources’diamondexploration 0.83 x0.660.53mm. total weight of0.013carat. Oneoftheseisamacrodiamond laboratory inCanada. This samplecontained102diamondswitha analysis ofa39kgbulksamplehasbeenmadeby theSGSLakefield During thesummer, thecompanyhascollectedrocksamplesandan company wasgranted alicenceattheAtaaSoundin West Greenland. A new companyinGreenlandis up toapprox. 500employees. and aminemaystartproductionin2011attheearliestwillhave Hudson ResourcesInc.isplanningtoapplyforanexploitation licence which isthebiggestdiamondfoundinGreenlandtothisday. 0.5mm inthreedimensions. The biggestofthediamondsis2.4carat, Of these,441aremacrodiamonds,i.e.ofafinenessgrain above A totalof1604diamondshave beenfoundintheSarfartoq area. processing anddiamondexploitation. deposited inlocked containersandshippedtoCanadaforfinal plant andafterprocessing,thematerialfrom”GarnetLake” willbe Moreover, Hudsonhas completedtheinstallationofaprocessing drilling programme isplannedfor2008. Lake andthepresenceofkimberlitewasconfirmed.Anextended data. 4,500metreswere drilledin12holesatthelocalityGarnet During summer, thecompanymadedrillingstoconfirmseismic helped tomapadiamondiferousrockcalledkimberliteover 1,200m. ground andreflectedby differentrocktypes. The surveys have At seismicsurveys, soundwaves aretransmitted intotheunder- in theirexploration areaintheSarfartoq regionin West Greenland. In thespringof2007, Diamond Hudson ResourcesInc. ResourcesLtd. made seismicsurveys In 2007,the HUDSON RESOURCES sulphide-bearing mineralisations. conduction capacity;asignaturewhichischaracteristic of the realisationofseveral near-surface anomaliesofhighelectric Preliminary interpretationsofelectromagneticdatahave ledto form ofmillimetre-sized”flakes” inrockfromhere. traced over aminimumof4km.Native copperhasbeenfoundinthe gold over 2m,andupto0.5%copper. The processedzonecanbe samples fromthenorthernpartofQussukareayieldupto6.5g/t company foundvisiblegoldin2007.Systematicallycollectedsurface The QussukareaisapartoftheStorølicence.Here 300m to1,000mabove sealevel. zone continuesanditcannow betraced inacontinuouslinefrom gold wasvisible. The drillingshave confirmedthatthegold-carrying Approx. 1,800metreswere drilledin12holesandsixofthem, are thehighestever tobemeasuredincoresfromStorø. bulk samplesshows valuesofupto52.2ggoldperton. These values bulk samplesofatotal1,200kg. The resultoftheanalyses the rock,andtherefore,in2007,companytookoutseven minor Previous resultshave shown thatthegoldisirregularlydepositedin in WestGreenland. In thesummerof2007 Gold yet anotherexploration licenceinthe area. the companywillmake additionalbulksamplingandhasappliedfor contribute toexpanding the"diamondprovince" southwards.In2008, "diamond province" of West Greenland. Therefore, thissamplewill The areanorthofwherethesampleistaken isdescribedasthe NunaMinerals A/S drilled forgoldonStorø

HUDSON RESOURCES Socio-economic Efforts page 17 of the Bureau of Minerals and Petroleum

The mineral ressource sector is experiencing growth in these years, mineral ressource sector, establishment of a central recruitment both in terms of oil and minerals. For the purpose of securing the office, adult training of unemployed persons, etc. The policy plan highest possible social and economic gains of this development, the was approved by the Expert Committee in December 2007. Bureau of Minerals and Petroleum is taking targeted initiatives in the efforts to qualify and re-group the Greenlandic workforce to the In 2007, a cross-directorate project was implemented with mapping new job potential which will open as a natural consequence of the of opportunities and barriers to move labour force from trades in prospects of five new mines opening in the coming five years. recession and trades with low average income to the new growth trades. This work is expected to be completed in 2008. The economic gain for Greenland will be partly increased tax revenues, partly direct employment, and the consequent effects Another important initiative is information meetings in the towns of related trades are expected to be significant. located in the neighbourhood of the potential new mines. The objec- tives of this initiative include informing the local population on the It is estimated that employment in the mining sector will be approx. job opportunities that arise at the start-up of a mine, and informing 1,500 persons in 5 years. In the long term, the Bureau of Minerals and independent contractors on the type of goods and services that are Petroleum assesses that the majority of the 1,500 persons will be demanded by the mines. In 2006 and 2007 the Bureau of Minerals recruited among the Greenlandic work force. To ensure this, the and Petroleum held meetings in Nanortalik, Qaqortoq, Uummannaq, Bureau of Minerals and Petroleum, in cooperation with the mining Maniitsoq and Narsarsuaq. This effort is expected to be continued in industry and other relevant institutions, has set up an expert com- the years ahead. mittee for the contractor and mining sector in 2007. It is the task of the expert committee to coordinate all aspects concerning training In 2007, the Minister for Infrastructure, Invironment and Mineral and education initiatives in the mineral resources sector. Ressources presented a bill for the creation of Greenland's Minerals and Petrolieum Fund. The objects of the Fund is to ensure that the In 2007 these efforts resulted in income of the Home Rule Government from mineral ressource • a grant of 48 million DKK for the start-up of a Mining School activities is managed with long-term considerations in mind. in Sisimiut in 2008 The capital of the Fund is mainly to be raised from mineral ressource • an upgrade in the Greenland Parliament Finance Act for 2008 earnings of the Home Rule Government and from proceeds from the of the miners' and contractors' courses at the Building and means of the Fund. Construction School in Sisimiut, so that from 2009 an annual amount of 6.2 million DKK be set aside for this purpose The focus in recent years on the minerals area has resulted in the • local implementation of miners' and contractors' courses in setting up by the Bureau of Minerals and Petroleum in cooperation Maniitsoq and Nanortalik with Kalaallit Nunaanni Ujaqqeritooqatigiit (the Greenland Rock Club) • canteen courses of a work group with the objective of preparing a guideline for the • courses for heavy machinery in Ulfborg collection of minerals. The work covers activities performed at a • language courses commercial level in addition to what is permitted under Section 32 of the Mineral Resources Act, but which are not big enough to In the autumn of 2007, a policy plan was prepared for the focus in the manage the obligations under a general licence. coming years, directed towards further initiatives such as the prepara- tion of analyses on the work-force requirement in the sector, tools for The Danish-Greenlandic Commission of selfgovernance set up the managing the labour market and educational efforts, refurbishment Work Group on Economy and Industrial Development in the spring of of premises, furniture, etc., mobility-promoting initiatives, courses directed towards people already employed in the contracting and 2007 for the purpose of negotiating the distribution of mineral ressource revenue between Greenland and Denmark and the size of the block grant in relation to Greenland's mineral ressource revenue. In June 2007, the Expert Group on the definition of mineral ressource revenue, chaired by the Bureau of Minerals and Petroleum, was estab- lished for the purpose of preparing a draft for the Work Group on Economy and Industrial Development and the Work Group on constitu- tional and international issues. On the basis of this draft, the two work groups are to present a proposal for the revenue definition to the com- mission which will have a long-term validity. This work is expected to be completed in 2008.

The Bureau of Minerals and Petroleum has also participated in seminars on socio-economic aspects concerning the new regional municipalities. Drilling of blast holes on the Publications: The Mineral Ressource Sector & Uummannaq Municipality Storø gold Recruitment, Training, Local Society & Socio-Economic Effects, May 2007 project, the (Råstofsektoren & Uummannaq Kommune Rekruttering, uddannelse, Nuuk Fiord lokalsamfund & socioøkonomiske virkninger, Maj 2007) NUNAMINERALS page 18 Danish kronerthisyear. year running. This makes atotaldistributionof 120,000tax-free 40,000 tax-freekronertothefirstandsecondprizesforseventh and Petroleum,GrønlandsBANKEN’s Trade Fundaddedatotalof sum of80,000tax-freeDanishkronerfromtheBureauMinerals winners ofthe2007minerals hunting.Inadditiontotheoverall prize has thisyear selectedtheminerals huntersmentionedbelow asthe The prizecommitteethatincludesgeologistsfromBMP, andGEUS, submitted foranexploration licencecovering thewinnerlocation. cation ofthewinningsampleyear, anapplicationhasbeen bilities forfindingnew mineralisations inGreenland.Afterthepubli- the submittedsamplescontributewithnew informationonthepossi- selected foranalysiswiththeActLabsLaboratory inNuuk.Asusual, were given arockdescriptionandsamplesofinterestwere 840 rocksampleswere sentinfromallover thecountry.Allsamples nationwide minerals huntforamateurgeologists.In2007atotalof Again in2007,theBMPimplementedUjarassiorit, whichisthe - HuntingforMinerals Ujarassiorit was heldinNuukon3-4November. The RockClubholdsanannualrockfair. In2007,the11throckfair Bureau ofMinerals andPetroleum. were alsoheldinprevious years by theRockClubsubsidisedby the cal environmentsandtheuseoffieldequipment.Similarcourses in methodsofreconnaissance,Greenlandmineral deposits,geologi- of 57participantscompletedthecourse,whichincludedinstructions knowledge ongeologyandexploration ofmineral resources.Atotal , Paamiut, Tasiilaq andUummannaqtogenerate greater Petroleum in2007heldprospectorcoursesNanortalik,Narsaq, As asupplementtoUjarassiorit, theBureauofMinerals and during theyear tolearnalittleaboutmineral resources. school classeshave visitedtheBureauofMinerals andPetroleum to thenationalminerals searchprogramme, Ujarassiorit, several have themidentified.Inadditiontothemanyrocksamplessubmitted Again in2007thepublicshowed greatinterestinfindingrocksand Local activities athomeandabroad – Information

QUJAN for arocksampleofincreasedgoldcontent. at Kangaatsiaq. rock samplewithhighvaluesofmolybdenumandmanganesefound rock sampleofincreasedgoldandcoppervalues. and gallium. a rocksamplefromnearOqaatsutwithhighvaluesofiron,lanthane from nearNuukwithcorundumcrystalsofthesapphiretype. rock samplenearSermiligaaqwithahighgoldcontent. from nearKulusuk withahighcontentofgoldandcopper. copper, manganese,mercuryandarsenic. gold value(approx. 0.7%gold)andhighvaluesofsilver, lead,zinc, of arocksamplewithvery visiblegold. The samplehadavery high Rasmus Thomassen One FirstPrizeof55,000tax-freekroner Simujoq Nathanielsen,Sermiligaaq Louise Jacobsen,Eqalugaarsuit Two Fourth Prizesof2,000tax-freekroner Ole Vittus Lynge,Nuuk Malene Siegstad, Enok Abelsen, Tasiilaq Three Third Prizesof7,000tax-freekroner Mikael Jeremiassen,Kangaatsiaq Pele Maratse, Kulusuk Two SecondPrizesof20,000tax-freekroner included asthedecisive basisforthedecisionsofjurypanel. submitted forchemicalanalysis. The analysisresultswillbe to theeast.Outof840rocksamples,251sampleshave been Nanortalik tothesouthand Tasiilaq andIlloqqortoormiutareas The submittedsamplesextend fromQaanaaqtothenorth of NuukwasawardedtheFirstPrizeforhisfind was awardeda Third Prizeforarocksample was awardedaSecondPrizeforhisfindof was awardeda Third Prizeforarocksample was awardedathirdPrizeforherfindof was awardedaFourth Prizefora was awardedaSecondPrizefor was awardedaFourth Prize

NUNAMINERALS the Amikoq intrusionnearFiskefjorden. Canal samplingforplatinummetalsin direct marketing effortstowards selectedinternationalcompanies. tions ininternationalmagazines,promotionviatheInternetand publishing ofnewsletter totheindustry,announcementofpublica- potential, by participatingininternationaltrade fairs andexhibitions, menting asolidmarketing effortoftheGreenlandmineral resources With suchpublicactivities,thepossibilitiesalsoincreaseofimple- activities. of Minerals andPetroleumcarriesoutseveral ofthistyperelevant developing projects.Assistedby cooperation partners,theBureau geological andgeophysicalinvestigations forthepurposeof that theauthoritiesthemselves enterandcarryoutmoreextensive authorities. Asaconsequence,itmaybenecessaryinsomecases more andvariedeffortsareexpected anddemandedofpublic stage hasbeengradually strengthenedinrecentyears, andtherefore search formineral resources. This castingonthemineral resources more detailedandcostlyinvestigations, dependingontheaimof the oilandminingcompaniescouldadvancedirectlytoimplementing could thenatanearlierdatebeevaluated aspromising. Therefore Based ontheseregionaldataandinvestigations, specificprojects been investigations thatwere typicallymadeby publicauthorities. Regional geologicalactivitiessuchasmappinghave foralongtime resources. underground ofacommerciallyviableextraction ofmineral and investigations candemonstrate thepossiblelikeliness inthe a given ’frontier’areasuchasGreenland,thatgeologicaldata important, inordertoattract themineral resourcesindustryto In today’s internationalworld ofmineral resourcesitisvitally mineral resources International marketing of

NUNAMINERALS deposits onAmmasalikIsland Field work forpotentialnickel-copper Roundup. AtPDAC, thecompanyhasitsown stand. stand. GreenlandResourcesA/SparticipatedintheCordilleran activities incooperation withGEUSandNunaOilA/Sajoint As inprevious years, Greenlandparticipatedinthesetrade fair • American AssociationofPetroleumGeologists(AAPG) • Prospectors andDevelopers AssociationofCanada(PDAC) • British Columbiaand Yukon ChamberofMines: several marketing arrangements andconferences,includingthese: In 2007,theBureauofMinerals andPetroleumparticipatedin ces anddirectmarketing resources trade fairs, conferen- Participation inmineral 1 –4April Los Angeles,USA International ConferenceandExhibition 4 –7March. International Convention and Trade Show, Toronto, Canada. 29 January–1February Cordilleran Roundup, Vancouver, Canada.

NUNAMINERALS page 19

NUNAMINERALS page 20 Statistics on the field of minerals

Mineral resources exploration in Greenland in the period 2001-2007

2001 2002 2003 2004 2005 2006 2007

Number of reconnaissance licencesr 6 6 11 12 12 12 14

Number of exploration licences 19 17 19 23 33 34 63

Number of exploitation licences 0011222

Square km covered by exploration licences 10.264 5.956 5.714 8.560 12.986 15.690 23,379

Total exploration obligations (in million DKK) 40,5 25,8 23,7 30,7 47,7 67 83

Total exploration expenses defrayed (in million DKK) 111,8 20,8 44,9 66,2 190 135 *

Total number of bore metres 4.071 112 3.195 6.862 25.146 18.101 18.111

* The companies’ deadline for submitting accounts for 2007 is 01 April 2008.

The progress in investments in the mineral resources sector of Investments in the exploration in 2005 was at the highest level in recent years was maintained in 2007. There has been a markedly 14 years (190m DKK). In 2006 the amount for total exploration increasing interest in investing in Greenland. Also the number of expenses had dropped to 135 million DKK. As distinct from 2005, application for exploration licences has been the highest ever expenses were more evenly distributed on more major projects. seen in Greenland. At the deadline for the annual report, the accounts for 2007 had not In 2007, 35 new exploration licences and three new reconnaissance been closed. licences were granted. At the end of 2007, a total of 63 exploration licences were granted, covering a total area of 23,379 sq km. Another significant reflection of the activities in Greenland is the In addition, 14 reconnaissance licences had been granted. number of bore metres. 2005 became the biggest year so far in relation to the number of bore metres of as much as 25,146 metres. There is still interest in the known deposits such as the zinc deposits In 2007, five drilling programmes were carried out with a total of in Citronen Fjord and at Maarmorilik, just as some licences have been 18,111 bore metres. granted where the exploration is concentrated on gold, nickel and diamonds. The biggest projects were the Angus & Ross drillings for zinc at Maarmorilik of 8,140 metres, second biggest was the ruby project Optimism in the minerals trade is reflected in an increase in total at Fiskenæsset with a drilling programme of 5,019 bore metres. investments in exploration in Greenland over recent years. Collected 2Dseismics(inkm) Square kmcovered by exploration licences Number ofexploration andexploitation licences Number ofreconnaissancelicences Statistics onthefieldofpetroleum The new university parkinNuuk Petroleum exploration inGreenlandtheperiod2001-2007 beginning of2008. South-West Greenland. These licenceswillalsobeissuedatthe received applicationsfortwo areasintheOpenDoorareaoffshore in 2008.Inaddition,theBureauofMinerals andPetroleumhas of theDisko West licensinground. These licenceswillbeissuedearly received applicationsforanotherthreelicenceblocksinPhase Two 55,119 sqkmin2007. The BureauofMinerals andPetroleumhas also goneupsignificantlyfromamere14,231sqkmin2001to licences in2007. The totalareaofthelicensingareashastherefore increase inthenumberofhydro-carbon exploration andexploitation Phase OneintheDisko West licensingroundhasledtoamarked 42139539539568268255.119 6.882 6.882 3.985 3.985 3.985 14.231 .8 .4 .9 .7 .3 7.072 6.630 5.673 0 8.792 6.742 4.680 0120 0320 0520 2007 2006 2005 2004 2003 2002 2001 2111226 91011 91111 9

Carsten Egevang / ARC-PIC.COM licences over theperiod2001-2007. The numberofprospectinglicenceshasremainedstableat9-11 two years offshoreGreenland. magnetic andgravimetric datahave alsobeencollectedover thepast data inthecomingyears. Inadditiontothis,largeamountsofaero- companies committhemselves tocollectlargeamountsofseismic programmes forthelicencesgranted intheDisko West area,the ted intheamountofcollected2Dseismics.Aspartwork The increasedexploration activitiesinGreenlandareclearlyreflec- page 21

Carsten Egevang / ARC-PIC.COM

page 23

Annual report on the minerals and petroleum activities in Greenland 2007 Publication and coordination: © Bureau of Minerals and Petroleum, May 2008. The Bureau of Minerals and Petroleum Graphics: Boman Qujan Published by the Bureau of Minerals and Petroleum, the Joint Committee on Mineral Resources in Greenland. This publication is published in Greenlandic, Danish and English. P.O. box 930, DK-3900 Nuuk, Greenland Translation: Blue Riband Translations Tel.: +299 346800. Fax: +299 324302 www.bmp.gl; [email protected] ANGUS & ROSS PLC are climbingdown totheentrance. Andrew ZemeckandKasperKotake ofAngus&Ross Preparations forthere-opening oftheMaarmorilikmine: www.bmp.gl