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Annual Report 2005 Map of Licences, 1 January 2006 Example of Map of Licences in Greenland

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Annual Report 2005 Map of licences, 1 January 2006 Example of map of licences in Greenland. The map is updated every 14 days on the first and sixteenth of the month on the Bureau of Minerals and Petroleum website www.bmp.gl, The map can be printed from here. Foreword In the last couple of years, Greenland has been facing a very Nunaoil A/S.The area involved covers approx. 3,000 km2 and positive development in both the minerals and the petroleum is located in a offshore area about 250 km west of Nuuk, sector. Interest by the minerals industry has increased as a re- West Greenland. sult of intensive marketing of the minerals potential in Green- land, and, further, by favourable developments in prices of oil, EnCana Corporation is also operating the Atammik licence off- minerals and metals. shore West Greenland.This licence was issued in connection with a licensing round in 2002, and includes an area approx. In the minerals sector, 2005 saw a marked increase in the 80 km northeast of the new licence area. number of licences: 15 new exploration licences and four pro- specting licences were issued.At the end of 2005, a total of EnCana Corporation has now completed extensive collection two exploitation licences had been granted, and 33 explora- of seismic data in both licence areas. Results of exploration tion licences covering an area of 12,986 km2, as well as 12 have been very positive, and there is every possibility that – in prospecting licences. a few years – we will see more exploration drilling offshore West Greenland. In the hydrocarbons sector, two exploration and exploitation licences had been issued for the offshore area west of Nuuk, 2005 has been characterised by a number of projects to ma- and eight onshore prospecting licences. ture the Disko-Nuussuaq region for licensing of exploration and exploitation activities within the hydrocarbon sector be- At the end of 2005 almost 60 licences had therefore been is- fore the end of 2006.The projects focus on the hydrocarbon sued. potential of the area, including collection of new seismic data: assessment of environmental impacts from the oil activities, For minerals, the break-through achieved in diamond explora- and analysis of the economic conditions for exploration of oil tion deserves special attention.Activities have resulted in and gas.The projects have been performed in close dialogue more than 300 diamonds found south of Kangerlussuaq in with the international oil industry. Results achieved in the 2004 and 2005. Exploration activities have also been conside- many surveys have been very encouraging, and much indicates rable, for instance for gold in Godthåbsfjord, at the zinc-lead the presence of an active petroleum system in this very large deposit at Maarmorilik, at ruby deposits in the Fiskenæsset offshore area, covering more than 90,000 km2. area, at the iron deposit at Isukasia, and at the molybdenum deposit at Malmbjerget on the Greenland east coast. The very positive results of oil exploration, and the opening of the two mines within a very short period indicates that we are A very important picture of the optimism displayed in the mi- facing new challenges and a new era, where exploitation of nerals sector is that total investments in exploration projects Greenland’s mineral resources will be a very important ele- increased threefold in the period 2002–2004, from DKK 20 ment in a sustainable economy in Greenland. mill. in 2002 to DKK 66.2 mill. in 2004. Two years ago, in 2003, Greenland opened its first gold mine, the Nalunaq gold mine, and in 2005, Seqi Olivine A/S started Jørgen Wæver Johansen operations to exploit the olivine deposit at Fiskefjord in the Minister of Housing, municipality of Maniitsoq.The company expects production to Infrastructure and Mi- amount to 2 mill. tonnes olivine per year. Deposits will be suf- neral Resources ficient for production for at least 25 years, and could generate a large number of jobs in Greenland. On 20 January 2005, I signed a new exploration and exploita- tion licence for oil and gas: the Lady Franklin licence was gran- ted to the Canadian oil company EnCana Corporation and 1 Joint Committee Joint Committee on Mineral Resources in Greenland. The Mineral Resources System for Greenland establishes a At the end of 2005, the Joint Committee consisted of the joint Danish-Greenlandic political responsibility for mineral following members: resource activities in Greenland.This means that Greenland and Denmark have joint authority to make decisions regar- Chair: Kim Andersen, MP (Denmark's Liberal Party) ding principal investments in mineral resource activities. Furthermore, the Danish government and the Greenland Greenlandic members Home Rule Government have agreed on the distribution of Kuupik Kleist (IA) profits from extraction of mineral resources. Ruth Heilmann (Siumut) The Joint Committee on Mineral Resources in Greenland Lars Emil Johansen (Siumut) has been set up as a political forum in which politicians Ellen Christoffersen (Attasut) from Greenland and Denmark can bring central issues re- Per Berthelsen (Democrats)) garding mineral resource activities up for debate.The Bu- reau of Minerals and Petroleum (BMP) under the Green- Danish members land Home Rule administrates the Mineral Resources Sy- Niels Sindal (Social Democratic Party) stem for Greenland and is the responsible authority for case Kaj Ikast (Conservative Party)) processing in connection with mineral resource activities. Aase D. Madsen (Danish People's Party) Martin Lidegård (Social Liberal Party of Denmark) The more detailed provisions pertaining to the Mineral Re- Svend Erik Hovmand (-Denmark’s Liberal Party) sources System for Greenland have been laid down in the Greenland Home Rule Act and in the Mineral Resources Act. The following officials from Greenland and Denmark took part in committee work as delegates: The Joint Committee on Mineral Resources in Greenland - also called the Joint Committee - consists of five politically Kaj Kleist, Executive Deputy Minister (Secretariat of the appointed members from the Greenland Parliament and Greenland Home Rule Government) the Danish Parliament. In addition, a Chair is appointed for Alfred Emil Rosing Jacobsen,Vice Minister (Department of periods of four years by the Queen of Denmark, following Environment and Nature) joint nomination by the Danish government and the Greenland Home rule Government.The tasks of the Joint Peter Lauritzen (Danish Prime Minister's Office) Committee are to monitor developments in mineral re- Thomas Egebo, Permanent Undersecretary of State sources activities and to submit its recommendations to (Danish Ministry of Transport and Energy) the Danish and Greenlandic governments on e.g. issues about the granting of licences for prospecting and for ex- During 2005, three meetings were held in the Joint Com- ploration. mittee. Less complex cases, such as applications for new licenses and area expansions and transfers, are processed between meetings by the Joint Committee's Chair and Vice Chairs. Core box and geologist’s hammer: From drilling activities on Storø 2005. Photo: GEUS. Nalunaq – the gold mine flag displayed over the mining town. Photo: BMP. Bureau of Minerals and Petroleum Objectives and tasks of the Bureau authorities are attempting to sharpen private-enterprise in- of Minerals and Petroleum terest in exploration activities in Greenland.The BMP enga- The Bureau of Minerals and Petroleum (BMP) under the ges in concerted efforts to promote Greenland's mineral Greenland Home Rule is responsible for the management potential through participation in international trade shows of mineral resource activities in Greenland.The BMP aims and exhibitions and through direct promotion initiatives ai- at ensuring professional promotion of the mineral potential med at selected oil and mineral companies. Moreover, the in Greenland to the international mining industry. English website of the BMP is an important means of commu- nicating full and relevant information to the mining industry. One of the main tasks of the BMP is the day-to-day admini- stration of licences for prospecting, exploration, and exploi- Greenland aims at making mineral resources one of its pri- tation of mineral resources.The BMP is responsible for all mary industries. Developments within mineral resource case processing and is the only authority the industry ne- activities must therefore be in dialogue with the people of eds to contact in order to obtain licenses.This ensures effi- Greenland. As a consequence, the BMP is striving to pro- cient case processing for mineral resource activities. vide a clear and comprehensible framework for mineral re- The BMP is contributing to the financing and implementa- source activities via a number of information activities, in tion of a number of projects which can provide new know- order to encourage a successful working relationship be- ledge about Greenland's mineral potential. In this way, the tween the mining industry and the public. authorities are attempting to sharpen private-enterprise in- The BMP cooperates on the administration of mineral re- terest in exploration activities in Greenland.The BMP enga- source activities with e.g. the Geological Survey of Den- ges in concerted efforts to promote Greenland's mineral mark and Greenland (GEUS), the National Environmental potential through participation in international trade shows Research Institute (NERI), and the Danish Energy Authority and exhibitions and through direct promotion initiatives ai- (DEA).Also the state-owned oil company NUNAOIL A/S is med at selected oil and mineral companies. Moreover, the an important partner. English website of the BMP is an important means of commu- nicating full and relevant information to the mining industry. Greenland aims at making mineral resources one of its pri- mary industries. Developments within mineral resource activities must therefore be in dialogue with the people of Greenland.As a consequence, the BMP is striving to pro- vide a clear and comprehensible framework for mineral re- source activities via a number of information activities, in order to encourage a successful working relationship be- tween the mining industry and the public.
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