1 / 23

Minister of Industry and Mineral Resources Jens-Erik Kirkegaard

Minister of Industry and Mineral Resources Jens-Erik Kirkegaard. The government of Greenland’s policy on mineral resources. The new government in Greenland. As you no doubt have already heard, Greenland has a new, broad governing coalition.

nascha
Download Presentation

Minister of Industry and Mineral Resources Jens-Erik Kirkegaard

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Minister of Industry and Mineral Resources Jens-Erik Kirkegaard The government of Greenland’s policy on mineral resources

  2. The new government in Greenland • As you no doubt have already heard, Greenland has a new, broad governing coalition. • It consists of three parties: Siumut, Atassut and Partii Inuit. • And although each party has entered the new government with its own party platform, they have a united approach when comes to industrial policy. • We want to continue with the positive industrial development that Greenland has experienced for many decades now.

  3. The new government programme • Government take on mining projects won’t increase – but the taxation model has to be organised in a different manner. • The zero-tolerance policy on uranium must be amended. • The Large-Scale Project Act needs to be adapted – the Greenlandic trade unions’ negotiating position has to be strengthened. • Mining and large-scale projects have to help create growth and prosperity. • The Government of Greenland will proceed cautiously with the allocation of new license blocks, but wants to see exploration continue at the current level • New oil licensing rounds are necessary to maintain the level of exploration because other license blocks on the west coast will expire.

  4. The goal of our industrial policy • It is the clear goal of the Government of Greenland to create the most positive business environment possible, and this is an area that we are striving to improve even further over the coming years. • On this note, I feel that it is important to point out that we are open to international commerce and foreign investment. • We are staunch supporters of free and open trade, where all businesses are subject to the same set of rules. • Because equal conditions mean that as many businesses as possible will take part in the competition to win a contract – for everyone’s benefit, not least of all for consumers and society.

  5. Foreign investment • Over the past few years, there has been a great deal of focus in the foreign media on our mineral resources. • This is an interest that we heartily welcome. • This has already resulted in a great deal of interest among foreign oil and mining companies that are seeking to acquire exploration licenses for specific areas. • This is true for both oil and minerals. A total of nearly 150 licenses have been granted to a wide range of companies. This is nearly ten times as much activity as we had just over 10 years ago, which is something that we are very proud of.

  6. Other industries • Fishing remains our main industry, and this is an area where we are constantly striving to achieve increased growth. • Tourism is another industry with big opportunities for growth. • Greenland is a unique tourist destination because our attractions are significantly different and more distinctive than what Western tourists can experience in their home countries or local communities. • This is an area that we intend to focus on. We view tourism as a major growth market. One of the opportunities that I want to examine as a relatively new minister in this sector is how we can attract tourists to our country who mainly visit Iceland. Every year, Iceland is visited by over 500,000 tourists.

  7. Growth potential for the Greenlandic economy • A recent analysis by the magazine MandagMorgen concludes: • “The resource crisis will accelerate until 2025, when there will be one billion more people in the world and the global middle class will broaden thanks to strong economic growth in China, India and other developing countries." • "The demography and historic boom in prosperity in the BRIC countries will simultaneously trigger a huge increase in the demand for energy, minerals and water, and there is no indication that oil-producing and mining companies can keep pace with this demand. According to the International Energy Agency (IEA), energy consumption alone will have increased by 35 percent by 2035. The United States National Security Council estimates that energy consumption may even rise by 50 percent by 2030." • The analysts conclude that the mineral resources sector has the potential to support future growth in Greenland.

  8. The urgent need to turn around Greenland’s economic development • Outlook for low growth – after high growth in 2011 • A net total of more than 7,000 people have emigrated from Greenland since 1993 Source: 2012 report of the Danish Economic Council

  9. Income per inhabitant Norway

  10. What the new government is concretely doing to turn this trend around We intend to decide on applications for exploitation licenses for mining projects during the course of 2013. Lead and zinc (Citronen Fjord) Iron (Isukasia) Rubies (Fiskenæsset) REEs (Kuannersuit) REEs (Killavaat Alannguat)

  11. New mining projects

  12. New mining permits • All mining projects will have to be environmentally and socially sustainable. • Comprehensive hearings will have to be held. • Both society and the companies will receive a fair share of the profits. • Impact and benefit agreements (IBA) will have to be made for all mining projects to ensure: • Maximum local employment • Maximum involvement of Greenlandic companies • Enhancement of skills and competencies among workforce, etc.

  13. Taxation of mining projects • Royalties will have to be paid on turnover – but at the same time we intend to reduce the corporation tax for the relevant mining companies so there will be no increase in the overall taxation of these projects. • We have already engaged in a productive dialogue with a number of companies on determining the overall taxation model – and will finalise this model during the course of the summer. • Greenland continues to be very competitive in this area:

  14. New policy on radioactive minerals - 1 • The majority of the known deposits of rare earth elements (REEs) in Greenland are associated with uranium and/or thorium. • The exploitation of rare earths thus requires an amendment to the current zero-tolerance policy on radioactive minerals. • The Government of Greenland intends to put forward a proposal on a decision-in-principle to amend the zero-tolerance policy concerning uranium and other radioactive minerals at the parliamentary session in the autumn of 2013.

  15. New policy on radioactive minerals - 2 • The parliament has commissioned an independent report on the consequences relating to a possible lifting or changing of the zero-tolerance policy on the exploitation of uranium and other radioactive minerals. • Likewise, a Greenlandic-Danish team of experts is compiling a report on the regulatory aspects of a change in policy on radioactive minerals. • These and other reports and studies will be incorporated into our ongoing work, including: • Drawing up a proposal for a decision-in-principle to amend the zero-tolerance policy • Compiling a possible follow-up set of rules and procedures for mining operations involving radioactive minerals

  16. Oil licensing policy Tirsdag 7. maj 13.30 – 14.10

  17. StatusThe license blocks cover an area of over 200,000 km2. There are over 20 license blocks with 14 companies involved. The participating companies include some of the world’s largest independent oil corporations. A total of 14 wells have been drilled in Greenlandic waters and many more are expected during the course of the next few years. Exploration in Greenland is in its infancy and many challenges lie ahead.

  18. Drilling in 2010 and 2011 The results of the drillings: confirmation that there is oil/gas in the area, but not yet in commercial quantities.

  19. Greenland Sea 2012/2013 bidding round Bidding area covers: 49,949 km2 And is divided into: 19 blocks Block sizes range between: 1,752 km2 and 3,803 km2

  20. Greenland Sea 2012/2013 bidding round • 2012 bidding round reserved for members of the KANUMAS group • Members of the KANUMAS group: • StatoilHydro • BP • ExxonMobil • Chevron Texaco • Shell • Japan Oil, Gas and Metals National Corporation • NUNAOIL • Applications for licenses were submitted by 15 December 2012 • The Government of Greenland will decide on these applications during the course of the summer.

  21. Greenland Sea 2012/2013 bidding round • 2013 bidding round is open to all interested parties • Applications for licenses must be submitted by 15 October 2013. • The bidding round will be conducted as planned.

  22. Upcoming oil drilling • Applications for permits to conduct new exploratory drilling for oil are expected during the course of 2013. • No applications for 2013 have been received at present.

  23. Thank you for your attention.

More Related