The Greenland Government is touting its lack of a mining tax to attract the interest of Australian miners looking to develop the country’s rich reserves of minerals.
Greenland’s deposits remain relatively undeveloped due to the country’s previous focus on fishing, but with global fisheries turning down it is looking to other resources to drive growth.
According to a report by the ABC Greenland minerals and petroleum geology department boss Henrik Stendal has touted the benefits of Greenland as a mining destination.
In particular Stendal stressed there would be no mining tax on resources companies wishing to develop projects.
“If a mining company has a mine here then they have the right to mine it, and we cannot put new taxes on this mine,” he said.
But Stendal said Greenland had already legislated that its future oil and gas income would be funnelled into a wealth fund.
Australian miner Ironbark Zinc’s CEO Adrian Byass said Ironbark had already completed exploration in Greenland and was looking to develop a mine over the next three years.
He told the ABC Greenland had a “very proactive and receptive political environment” and miners would be “going where the money is”.
“There’s no impediments at all for developing an operation in Greenland,” he said.
Other Australian ventures in Greenland include the rare earth, zinc and uranium Kvanefjeld project being developed by Greenland Minerals and Energy.
The project is being touted by the company as having the potential to be one of the world’s largest rare earth producing mines.
Part of the increased interest in mining Greenland has been tied to the country’s significant amount of ice loss.
Average ice loss in Greenland since 1993 has been about 120 billion tonnes per year, with evidence the rate may be increasing.
While still administered by Denmark, Greenland’s recent change to a self-governance structure, where it controls its own mining laws, has also helped increase mining interest.