Greenland's role in world-wide mining and contribution to the EU raw material initiative Henrik Stendal Chief Geologist
Ministry of Industry and Mineral Resources Greenland
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Coastline: 44,087 km Area: 2,166,086 km2 Ice-free area: more than 410,000 km2 (Germany 357,000 km2)
The world’s largest Island
www.heliheyn.de
What is Greenland? Self-governing overseas area since 1979 Self-governance from 2010 Population: 56,800
The number of exclusive licences 6-doubled since 2002
Today there are almost 150 active and applied small scale, prospecting, exploration and exploitation licences
Exploration expenses 2002-2011
DKK 700.000.000 600.000.000 500.000.000 400.000.000 300.000.000 200.000.000 100.000.000 0 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
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Country distribution Country of origin
Exploration companies can be registered abroad (current 58 % are Canadian or Australian companies) 15 % of the exploration companies operating in Greenland are from the EU (Denmark, Germany, Czech Republic and United Kingdom).
Czech Republic
United KingdomSw itzerland Norw ay Iceland
Australia
Greenland Germany Canada
Denmark
Country distribution (EU / non-EU)
EU Outside EU
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Fiscal Terms 100%
90%
TilProfit rettighedshaver efter udbytteskat
80%
Udbytteskat Withholding
70%
Told
tax
Corporate and withholding tax in Greenland
Tariff Omsætningsroyalty
60%
In all:
37%
Royalty 50%
Arealskat
Acreage tax 40%
Overskudafgift
Surplus tax 30%
Mineskat
Mine tax 20%
Regional skat
Regional tax 10%
Selskabsskat
Corporate tax 0% Australia Australien Can.Nunavut Can. Nunavut
Can.NFL Can. NFL
Chile Chile
China Kina
Greenland Grønland
Sweden Sverige
South Africa Sydafrika
Politicians are debating a change!
Mining projects Zinc-lead Citronen Fjord
Zinc-lead Black Angel
Already granted Other advanced projects
Olivine (Seqi)
Iron (Isua)
Rubies (Fiskenæsset) Iron, titanium, vanadium (Isortoq)
Gold (Nalunaq Gold Mine)
Molybdenum (Malmbjerg) PGE/Gold Skaergaard
REE • Killavaat/Kringlerne • Kuannersuit/Kvanefjeld • Sarfartoq
Greenland TREO/CREO potential • • • • • •
4 EU meetings – Brussels (2), Copenhagen and Nuuk Officials and industry EU budget 2014 – 2020 No agreement with EU Greenlandic exploration companies have approached EU industry Little progress
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TREO Resources in Greenland
Locality
Geology
Tonnage
Grade
TREO resources
LREE
HREE+Y
Niaq (Karrat) Kuannersuit/Kvanefjeld
Hydrothermal Alkaline rocks/Luvjarite
Sarfartoq
Mill.t. 26 956
% 1,02 1,07
kt 265 10.229
% 87,2 88,0
% 12,8 11,8
Carbonatite
14
1,51
216
96,0
4,0
Up to 25% Nd2O3 + Pr2O3 (ST 1)
Qeqertaasaq
Carbonatite
45
4,2 (Main Vein), 0,42 (Bulk) average 1
450
99,0
1,0
Average 14,3% Nd2O3 (Main Vein)
Tikiusaaq
Carbonatite
N/A
4,00
200
99,0
1,0
Target resource
Motzfeldt Sø
Alkaline rocks/Syenite
N/A
1,08
N/A
81,5
18,5
+ 3,1% ZrO2, 0,6% Nb2O5 and 0,08% Ta2O5
Milne Land
Fossil placer
5
1,00
50
87,3
12,7
+ 2% ZrO2
Killavaat/Kringlerne
Alkaline rocks/Kakortokite
4.000
0,49
19.600
73,0
27,0
+ 2% ZrO2
Total
5.046
Comments
+ 0,4% U3O8 and 0,23% Zn
31.010
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CREO Resources in Greenland (Nd2O3+Eu2O3+Tb2O3+Dy2O3+Y2O3) Locality
Geology
Tonnage
Grade of CREO
CREO resources
CREO of Comments TREO
Mill.t.
%
kt
%
4.000
0,16
6.280
32,0
+2% ZrO2
Killavaat/Kringlerne
Alkaline rocks/Kakortokite
Kuannersuit/Kvanefjeld
Alkaline rocks/Luvjarite
956
0,30
2.915
30,5
+ 0,4% U3O8 and 0,25% Zn
Sarfartoq
Carbonatite
14
0,60
86
40,0
Up to 25% Nd2O3 + Pr2O3 (ST 1)
Niaq (Karrat)
Hydrothermal
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0,27
70
26,0
Qeqertaasaq
Carbonatite
45
0,15
65
14,5
Average 14,3% Nd2O3 (Main Vein)
Milne Land
Fossil placer
5
0,21
11
21,0
+ 2% ZrO2
Tikiusaaq
Carbonatite
N/A
N/A
N/A
N/A
Motzfeldt Sø
Alkaline rocks/Syenite
N/A
N/A
N/A
N/A
Total
5.046
+ 3,1% ZrO2, 0,6% Nb2O5 and 0,08% Ta2O5
9.428
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Production ROW – CREO production 564 t
Hatch, TMR 2011
China – CREO production 27.027 t
Greenland CREO resources ~9.4 mill.t 12
Tanbreez Greenland A/S • Deposit of eudialyte, zirconium, REE, Ta, Nb and Y
• Activity plans: - Open pit - Comprehensive exploration programme conducted - Exploitation application2013 Narsaq
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TANBREEZ Rare earth suite Contained rare earths – heavy 27%, light 73%. Terbium (Tb); 0,5% Gadolinium (Gd); 2,3% Europium (Eu); 0,3%
Dysprosium (Dy); 2,9%(Ho); 0,6% Holmium Erbium (Er); 1,9%
Samarium (Sm); 2,5%
Gadolinium (Gd) Terbium (Tb) Dysprosium (Dy)
Thulium (Tm); 0,3% Ytterbium (Yb); 1,9%
Neodymium (Nd); 13%
Holmium (Ho) Erbium (Er) Thulium (Tm) Ytterbium (Yb)
Praseodymium (Pr); 3,9%
Yttrium (Y); 16%
Yttrium (Y) Lutetium (Lu)
Lutetium (Lu); 0,3%
Lanthanum (La) Cerium (Ce) Praseodymium (Pr)
Cerium (Ce); 35,6%
Lanthanum (La); 18,1%
Neodymium (Nd) Samarium (Sm) Europium (Eu)
TANBREEZ: Total of Light and Heavy REE
Source Greg Barnes - Tanbreez
REE – non-Chinese
Source: Greg Barnes - Tanbreez
Tanbreez project
Greenland Minerals & Energy Kvanefjeld: 619 Mt 6.6 Mt TREO + 3 Blbs Zn 350 M lbs U3O8
Zone 3: 95 Mt
New discovery zones
Sorenson: 242 Mt
4km www.ggg.gl
Northern Ilimaussaq Complex Specialty Metal Project
License Boundary
Northern Ilimaussaq Complex Key Geological Units
Greenland Minerals & Energy
12 % HREE
Possible Greenland REE supply Greenland is endowed with several REE deposits All the well-known deposits are licensed and some have reached advanced stages of exploration In particular the REE exploration industry has focused on the alkaline intrusions in South Greenland (Kuannersuit/Kvanefjeld, Killavaat Alannguat/Kringlerne), and some of the carbonatite REE deposits in West Greenland Greenland has a CREO resource of 9.5 mill.t. EU industry wants access to REE supply
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Uranium in Greenland
•
Uranium/thorium exploration and exploitation is not allowed in Greenland
•
At present a debate is taking place at the Parliament
•
Decision in the Parliament in Autumn 2013
Examples of uraniumbearing occurrences 20
True North Gems Inc – Rubies & Sapphires
• Processing of 48 tonnes of ore have yielded: • 65,000 gr. of gem • 129,700 gr. of near gem • The company has applied for an exploitation permit
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True North Gems Inc – Rubies & Sapphires TNG is proposing to build a small mine with a minimum of infrastructure starting in 2014 and to expand the infrastructure and production as the market for Greenland ruby and pink sapphire is developed. The mine plan provides for duration of mining activities to be 9 years, with the possibility of extension. The Aappaluttoq Project will consist of mining operations and processing of ruby ore to ruby concentrate at the mine site in Aappaluttoq. The project will include processing, sorting and cleaning of ruby concentrate to rough classified ruby and pink sapphire in Nuuk. Tekst skrives ind i sidehoved/sidefod
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Iron mine-project situated at Isua – Nuuk Company: London Mining Greenland A/S Nationality: English / Greenlandic Project site in Greenland: Isukasia (Isua), 150 km northeast of Nuuk
Greenland ISUA Iron Ore Project
The wharf where large ships will come to load the concentrate product and transport it to the markets
•
First large scale mine in Greenland
•
Construction period: 3 years
•
Employment during construction (peak level): ~ 3,000 persons
•
Employment during operations 700 – 800
•
1.1 billion tonne of JORC ressource with a grade of approximately 34 % Fe
•
Additional orepotential of 950 Mt to 1.5 billion tonnes
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Capex approximately USD 2.35 billion
•
Permitting proces is at an advanced stage
Lead/Zinc - Ironbark – Citronen Fjord
• Found in 1993 by Platinova
Boeing 727 landing at Citronen Fjord
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Lead/Zinc - Ironbark – Citronen Fjord Citronen Project
100% Ironbark
Resource
71 Mt at 5.7% zinc + lead (Zn+Pb) - based on 2012 resource (132 Mt)
First Five Years Mining
Underground 16.5 Mt at ~ 5.7% - 8.4% Zn+Pb upgrading to mill feed grading ~8.4% - 14.5% Zn+Pb at a production rate of 3.3Mtpa
Life of Mine
at least 14 years at 3.3Mtpa production rate(potentially much more)
Concentrate Grade
~55% Zn, ~50% Pb
CAPEX
US $502 million (pre NFC) includes first fills and contingencey
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How to be part of the exploration activities in Greenland?
How to apply for a licence STEP 1 (LICENCE TYPES) Application forms can be found on the BMP website www.bmp.gl Three different licence types can be applied for: Prospecting licence Exploration licence Exploitation licence
STEP 2 (CONTENT OF AN APPLICATION)
STEP 3 (HOW TO APPLY)
A correct application is defined as an application, which is completed on the approved BMP application form (download the form from the BMP website www.bmp.gl), and contains the following information without reservations:
A signed application for licence must be submitted by letter, fax or email to:
A. Name, address, telephone no, fax no and e-mail address. B. Delineation of the area defined by degrees and whole minutes. C. Sufficient technical and financial information. D. Other relevant information stipulated by the BMP. E. Correct application fee.
Bureau of Minerals & Petroleum (BMP) Imaneq 29, P.O. Box 930 3900 Nuuk Greenland Tel: +299 34 6800 Fax: +299 324302 Email:
[email protected] Website: www.bmp.gl
www.bmp.gl
www.bmp.gl (minerals)
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www.bmp.gl
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www.bmp.gl
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Future mines? Promising exploration projects, which can turn into mines within the next 15 years
Zinc-lead
Titanium, vanadium, cobalt Iron
Navarana Fjord Washington Land
Moriussaq
Melville
Wolfram and antimony
REE Niaq
Ymer Ø
Nickel, REE Maniitsoq
PGE-goldmolybdenum
Gold
Flammefjeld
Storø and Qussuk
Iron
Tantalum-niobium-REE
Isortoq
Motzfeldt Sø
Gold Nalunaq Gold Mine
Concluding remarks Greenland is generally underexplored compared to similar geological settings elsewhere (Canada, South Africa, Australia) and offers an enormous potential for finding deposits. All exploration or mining companies can obtain a mineral license (very few from EU). There is a general shortage of highly educated professionals in the raw materials sector. EU projects can strengthen education of geologists and engineers in the field of raw materials (University training – BSc, MSc, PhD – petrology and economic geology). The future strategy for Greenland concerning mineral resources will be focused on critical minerals and base metals. There will be a continuous sampling of base data and research of geological processes for understanding and modelling of ore deposits. No EU agreement for the 2014 – 2020. EU is welcome.
Thank you for your attention!
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