Greenland
Legislation
- Mineral Resources Act 2009 (amended)
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
It is said that around 90% of an iceberg can lie unseen below the surface and perhaps the same can be said for Greenland's regulation of its mining industry. The Mineral Resources Act really plays the role of an introduction - with the full story only revealed when the terms of a mineral licence are established. As Greenland only became responsible for the administration of its mineral resources in 2010 it is possible that it intends to address matters on a case-by-case basis - when or if they arise. Unfortunately this does not provide a solid foundation for potential investors, who will find themselves placed at the centre of a host of competing issues. Under the MRA the protection of Greenland's unique environment and the immediate need for Greenlanders to receive benefits from the exploitation of the country's natural resources look to take centre stage, with the aim of attracting foreign investment seemingly forgotten. The specific terms of the licence may ultimately make for a more attractive investment opportunity but as it stands the considerable infrastructure challenges are not the only hurdle the miner will have to overcome.
Contents
Legislation
- Mineral Resources Act 2009 (amended)
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Greenland has a small economy dominated by the fishing industry, which sits at the heart of it. Around 90% of Greenland’s exports are products from fishing, with shrimp and halibut being exported in the largest volumes. Greenland’s economy is further supported by annual grants from Denmark. Each year such grants amount to in excess of $500 million (USD) which is around 25% of Greenland’s GDP.
Greenland is believed to have considerable mineral resource potential and the government is aiming to use its natural resource wealth to diversify and grow the country’s economy. To date, the mining industry has not been a major source of revenue for the country. At the time of writing (Oct. 2020), there are few operating and active mines, but interest is strong, and the results of several large-scale exploration projects have been positive. In addition, climate change has caused some of the ice that covers the island to melt, thereby opening up new areas for exploration. Minerals in Greenland include (amongst others): rare-earth minerals; gold; zinc; lead; iron ore; platinum; uranium; diamonds; and rubies. Further exploration is needed to establish the commercial viability of the country’s mineral deposits and infrastructure issues remain a key hurdle for companies looking to operate there.
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