Greenland - a new land of opportunity
Greenland is a safe, autonomous country within the Kingdom of Denmark. While lying within the European sphere of influence, it is not part of the European Union. Greenland sees petroleum and mining as a means of achieving full independence from Denmark. Consequently, in an effort to attract investment in exploration, Greenland has favourable regulations and tax structures. While many countries profess to be exploration and mining friendly, Greenland’s actions match its words. In recent years the Government has overturned a uranium mining ban it inherited from Denmark, permitted mines when there were many disbelievers, and is actively putting its own money into generating pre-competitive data. As part of the Kingdom of Denmark, Greenland has an extremely low perception of corruption, a stable regulatory environment and favourable geology. We consider Greenland to be the most attractive emerging mining jurisdiction in the world.
Greenland (and Denmark) has an outstanding pedigree. Internationally, Greenland ranks:
2nd out of 169 countries in the Corruption Perceptions Index
11th out of 188 countries on the Human Development Index
8th out of 159 countries in the Human Freedom Index.
In addition to being an ethical, safe, friendly jurisdiction, Greenland also has a low mineral taxation rate. The country:
does not impose rents or rates for any of its mineral licences;
allows deductions for corporate income and dividend taxes, as opposed to Western Australia that allows no such deductions.
Greenland is an emerging mining destination that contains some of the most notable undeveloped deposits in the world. For example, the:
Kvanefjeld project owned by Greenland Minerals Ltd is one of the world’s largest, most advanced rare-earth deposits. This project is estimated to have an after-tax, net present value (‘NPV’) discounted at 8% per annum, of US$1,400 M.
Citronen project owned by Ironbark Zinc Ltd is one of the world’s largest, and highest grade undeveloped zinc mines. The project is estimated to have an NPV8% of US$909 M.
Dundas project owned by Bluejay Mining Plc is the world’s highest grade titanium sands deposit, and only 17% of the known mineralisation has been tested. This beast is growing at a rate of knots and is being fast tracked to production in 2019.
Skaergaard project owned by Platina Resources Ltd is one of the world’s largest undeveloped gold-platinum deposits.
Crucially, unlike many known mining jurisdictions, it is still relatively easy to explore for deposits at or near surface in Greenland. This is conducive to making discovery efficient, fast, and effective. Furthermore, in January 2018, China published a white paper on its Arctic Policy, which in the west is dubbed the Polar Silk Road. If a northern trade passage is established, it will provide competitive access to the the three great markets of North America, Europe, and Asia.