Ministry of Industry, Labour and Trade Deputy Minister Jørn Skov Nielsen
Greenland – investment opportunities An Industry and Trade perspective
Ministry of Industry, Labour and Trade Responsible for industry and trade in general The Ministry also covers tourism, trade, industry, export of ice and water, hydropower and some areas of mining & oil/gas etc. The climate change in the Arctic regions has a huge impact on the everyday life in Greenland But there are also som industry advantages due to the changing environment
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Annual mean temperature since 1873 Denmark, Faroe Islands and West Greenland
Increase in temperature within the last 130 years. Current temperature level is the highest in the series. The series from 2001-2010 was the warmest decade in all series.
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Arctic Ocean Sea Surface Temperature
65N to 90N. 0.6 deg Celcius mean average increase since 1981 Increased average temperature over the years.
http://wattsupwiththat.com 16-03-2016
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Sea Ice coverage
Greenland Ice Sheet In the last 10 years 240 km3 inland ice have melted each year
Arctic Ice Conclusions •
Arctic Ocean sea-ice diminishing rapidly – both concentration and thickness
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Multi Year ice fraction decreasing
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First Year ice fraction increasing
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Less ice in Arctic Ocean – less ice in NE Greenland
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The Ice Cap is being reduced
New Arctic Shipping Routes
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Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists Hydropower and energy intensive industries Export of Greenlandic ice and water Mineral Resources
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New national tourism development strategy New Infrastructure to lower transport costs and to improve facilities
New airport structure Infrastructure development for the cruise industry Reduction of tourism taxes and fees Exclusive tourism concessions to enhance investments Investments in world class visitor centres and attractions
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Investments in airports
UMD
JAV
Kangerlussaq
Present traffic flow
JEG JHS JSU
GOH
KUS
UAK
Extension of runways
A considerable potential for lowering fares through construction of new infrastructure • The establisment of new airports will reduce the cost of transportation pr. passenger • This will in turn provide the basis for cheaper airfares • This will unlock the growth potential in tourism Source: AirInsight and Rambøll A/S
Improving accessibility by direct flights and lower airfares a)A new airport in Ilulissat – extension of the run-way to at least 2,200 meters b)Extension of run-way at Nuuk Airport to at least 2,200 meters • 30 % reduction in air fares • More than double the number of tourists •
a c b
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New Airports in Ilulissat and Nuuk • Run-ways at Ilulissat and Nuuk airports to be extended to 2,200 meters • 57 % of incoming traffic will in this scenario arrive at final destination. • 40 % going to Nuuk • 17 % going to Ilulissat Investment result
Investment result
2,200 Million DKK
330 Million USD
Net present value at 4 %
907 Million DKK
135 Million USD
IRR
8.5 %
8.8 %
Capex
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New Airports in Ilulissat and Nuuk The government is looking for partners to: Finance Build, and Operate… ..The airports in Nuuk and Ilulisssat
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Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists Hydropower and energy intensive industries Export of Greenlandic ice and water Mineral Resources
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Water and ice in Greenland Inland ice cap covers an area of 1.7 mio. km² (equal to 2.7 times the area of France) Inland ice cap has an estimated volume of 2,600,000 km³ equal to 10 % of the total fresh water resources in the world Data collection started more than 30 years ago A report from 2005 gives overview of nearly 50 potential resources for hydro power 17 of which are estimated to have a nominal power of > 100 MW Largest resource having an estimated nominal power of 300 MW (Estimated energy production from power plant 2,500 GWh/a)
Ministry of Industry, Labour and Trade -
[email protected] 17
Hydro power know-how in Greenland 70% of the power the national power supplier (Nukissiorfiit) is producing is hydropower Currently 5 active hydro power plants Hydro power 1990-1993 Hydro power Hydro power 2007 Hydro power Hydro power
plant in Buksefjorden was constructed plant in Tasilaq constructed in 2002-2005 plant in Qorlortorsuaq constructed in 2004-
plant in Sisimiut constructed in 2007-2010 plant in Ilulissat constructed in 2010-2013
Ministry of Industry, Labour and Trade -
[email protected] 18
Potential usage of hydro power
Hydro power can be utilized in Energy intensive industries such as:
Aluminium industry Steel industry Copper industry Chemical industry Datacentres
Ministry of Industry, Labour and Trade -
[email protected] 19
Overview of hydro power potentials in western Greenland Hydro potentials in western Greenland based on the 2005 report 3 areas of particular interest are: Tasersiaq (07.e) Søndre Isortup Isua (07.d) Imarsuup Isua (06.g)
Ministry of Industry, Labour and Trade -
[email protected] 20
Hydrological measurements The ongoing data collection from Greenlandic hydropower potentials covers amongst others: Run-off The average annual water run off in hm³ = mio. m³ from the surrounding area Reservoir size Size of a natural or artificial lake than can be used to contain water from periods with surplus run-off. The size is estimated from best available maps and is given in hm³ = mio. m³ Head (the height of the water drop) Maximum net height in meters of the water drop i.e accounting any potential loss in the waterways 21
Hydro power potential at Tasersiaq (No. 07.e-1) Available data from 1975 and forward Ongoing hydrological measurements such as Run-off (2160 hm³) Reservoir size (2240 hm³) Head (the height of the water drop) (620 m) Estimated nominal power of 300 MW Estimated energy production from potential power plant 2500 GWh/a (equal to yearly consumption of 3.3 mio. people based on world average consumption) Estimated construction cost 2982 mio. DKK. ( approx. 401 mio. €)
Detailed preliminary examinations incl. engineer geological reconnaissance for dams, tunnels, transmission cables and other infrastructure 22
Hydro power potential at Søndre Isortup Isua (No. 07.d) Available data from 1975 and forward Ongoing hydrological measurements such as Run-off (1000 hm³) Reservoir size (1000 hm³) Head (the height of the water drop) (430 m) Estimated nominal power of 125 MW Estimated energy production from potential power plant 1000 GWh/a
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Hydro power potential at Imarsuup Isua (No. 06.g) Available data from 1974-94 Ongoing hydrological measurements such as Run-off (1000 hm³) Reservoir size (1080 hm³) Head (the height of the water drop) (635 m) Estimated nominal power of 154 MW Estimated energy production from potential power plant 1480 GWh/a
Ministry of Industry, Labour and Trade -
[email protected] 24
Specific Greenlandic hydro power project – Aluminium smelter at Maniitsoq
Combination of the two largest potentials mentioned above Project plans for aluminium smelter located in Maniitsoq Other locations might of cause be possible The following data is based on location in Maniitsoq
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Specific Greenlandic hydro power project – Aluminium smelter CAPEX 20 billion DKK approx. 2.68 billion € Project lifetime min. 45 years Production approx. 400,000 tons per annum Construction phase Hydro power plants Transmission cabling & smelter Infrastructure
approx. 4-5 years approx. 2-3 years approx. 7 years
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Specific Greenlandic hydro power project – Aluminium smelter Labour effects: Construction phase 2600 persons Operation phase 650 persons/annum Indirect labour effects 300 persons/annum
Ministry of Industry, Labour and Trade -
[email protected] 27
Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists Hydropower and energy intensive industries Export of Greenlandic ice and water Mineral Resources
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Export of ice and water 81% of Greenland is covered by the ice cap The ice cap holds around 10% of the worlds fresh water-resource The market for bottled water has been growing (four licences granted) This industry in Greenland is still in its initial phase, but there has been interest from among others the Asian market
Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists Hydropower and energy intensive industries Export of Greenlandic ice and water Mineral Resources
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Advanced projects
Greenland
Zinc/lead (Citronen Fjord) Ironbark Zinc
Anorthosite (White Mountain) Hudson Resources Iron ore (Isukasia) London Mining
Ruby/Sapphire (Fiskenæsset) True North Gems
REE/Uranium (Kuannersuit) Greenland Minerals & Energy
London Mining Iron ore project
Exploitation license signed October 2013 License transferred to Chinese company
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London Mining (Isukasia) • CAPEX USD 2.35 billion
• Employees o Construction up to 3,300 o Production 700
More than1 billion tonnes of JORC Fe resources 32-33 % Fe will be concentrated to a 65-70 % quality iron procuct
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True North Gems • Ruby/Sapphire project • Mine constructed in 2015/2016 • Export potential 8 million carrats gemstones annually
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Ironbark Zinc Limited Zinc+lead project – Citronen Fjord
Capital investment of approx. US$ 430 millions 71-132m tonnes of ore with a fineness of 4.5-5.7% zinc+lead Planned production of 14 years' mining 3.3m tonnes mined every year Construction phase: 450 employees. Operational phase: 250-300 employees
The Citronen Fjord mine will be one of the 10 largest zinc mines worldwide
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Greenland Minerals & Energy (GME) REE + uranium project - Kuannersuit Kvanefjeld: 619 Mt 4.79 Mt REO, 283 M lbs U3O8 1M tonnes Zn
New finds (zones)
4 km
Licence boundary
The area around Kuannersuit (Kvanefjeld) 16/03/2016 36
Greenland Minerals & Energy REE + uranium multi element project The capital investment is currently estimated at approx. US$ 900 million GME has concluded a co-operation agreement with China Non-Ferrous Metal Base case feasibility study: Processing in Greenland into an uranium oxide (yellow cake) and a rare earth carbonate 1,500 employees (construction) 700 employees (operation)
Planned infrastructure at the mining site, tailing depot, harbour, road and houses
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Hudson Resources Anorthosite – White Mountain
Anorthosite is used for
• • • •
Capital investment of more than DKK 200m 0.2 m tonnes mined every year, may increase to 0.5 m tonnes Enough anorthosite for 120 years of mining 50 employees during the production phase (primarily locals) 16-03-2016 38
Greenland Oil & Gas
The Licensing Policy 2012 and 2013
• Status for the last two strategy periods (2003-2009-2013) – 10 years of SUCCESS. • Licensing rounds approximately every 2. years: 2002, 2004, 2006, 2007 (2008), 2010, 2012 and 2013
• In total 214,467 km2 offshore West and East Greenland have been covered by exploration and exploitation licences
2010
2006 and 2002 2007 and 2004 2007 and 2008
The Licensing Policy New Licensing Strategy for the period 2014 – 2018: •Having licensing rounds and open door license areas in the following areas:
2017 2014
• Jameson Land (2014) onshore – open door • South Greenland (2014) offshore – open door • Disko/Nuussuaq (2016) Onshore • Baffin Bay (2017) offshore • Nuuk West (2018) offshore
2016
2018
2014
Thank you
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