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Greenland – investment opportunities Ministry of Industry, Labour and Trade Deputy Minister Jørn Skov Nielsen An Industry and Trade perspective
Greenland – investment opportunities
Ministry of Industry, Labour and Trade
Deputy Minister Jørn Skov Nielsen
An Industry and Trade perspective
Ministry of Industry, Labour and
Trade
Responsible for industry and trade in general
The Ministry also covers tourism, trade, industry, export of ice and water,
hydropower and some areas of mining & oil/gas etc.
The climate change in the Arctic regions has a huge impact on the everyday
life in Greenland
But there are also som industry advantages due to the changing
environment
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Annual mean temperature
since 1873
Increase in temperature within the
last 130 years.
Current temperature level is the
highest in the series.
The series from 2001-2010 was the
warmest decade in all series.
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Denmark, Faroe Islands and West Greenland
Arctic Ocean Sea Surface
Temperature
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65N to 90N.
0.6 deg Celcius
mean average
increase since
1981
Increased
average
temperature over
the years.
http://wattsupwiththat.com
Sea Ice coverage
In the last 10 years 240 km3 inland ice have melted each year
Greenland Ice Sheet
Arctic Ice
Conclusions
• Arctic Ocean sea-ice
diminishing rapidly – both
concentration and thickness
• Multi Year ice fraction
decreasing
• First Year ice fraction
increasing
• Less ice in Arctic Ocean – less
ice in NE Greenland
• The Ice Cap is being reduced
New Arctic Shipping Routes
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Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists
Hydropower and energy intensive industries
Export of Greenlandic ice and water
Mineral Resources
New national tourism development strategy
New Infrastructure to lower transport costs and to
improve facilities
New airport structure
Infrastructure development for the cruise industry
Reduction of tourism taxes and fees
Exclusive tourism concessions to enhance
investments
Investments in world class visitor centres and
attractions
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Investments in airports
Lime green fact box Kangerlussaq
UMD
KUS
UAK GOH
JEG
JHS
JSU
JAV
Extension of
runways Present traffic
flow
A considerable potential for
lowering fares through construction of new
infrastructure
Lime green fact box
Source: AirInsight and Rambøll A/S
• The establisment of
new airports will
reduce the cost of
transportation pr.
passenger
• This will in turn
provide the basis for
cheaper airfares
• This will unlock the
growth potential in
tourism
Improving accessibility by direct
flights and lower airfares
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a
b
c
a)A new airport in Ilulissat –
extension of the run-way to at least
2,200 meters
b)Extension of run-way at Nuuk
Airport to at least 2,200 meters
• 30 % reduction in air fares
• More than double the number
of tourists
•
New Airports in Ilulissat and Nuuk
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Investment
result
Investment
result
Capex 2,200 Million
DKK
330 Million
USD
Net present
value at 4 %
907 Million
DKK
135 Million
USD
IRR 8.5 % 8.8 %
• Run-ways at Ilulissat and Nuuk airports to be extended
to 2,200 meters
• 57 % of incoming traffic will in this scenario arrive at final
destination.
• 40 % going to Nuuk
• 17 % going to Ilulissat
New Airports in Ilulissat and Nuuk
The government is looking for partners to:
Finance
Build, and
Operate…
..The airports in Nuuk and Ilulisssat
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Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists
Hydropower and energy intensive industries
Export of Greenlandic ice and water
Mineral Resources
Water and ice in
Greenland
Inland ice cap covers an area of 1.7 mio. km² (equal to
2.7 times the area of France)
Inland ice cap has an estimated volume of
2,600,000 km³ equal to 10 % of the total fresh water
resources in the world
Data collection started more than 30 years ago
A report from 2005 gives overview of nearly 50
potential resources for hydro power
17 of which are estimated to have a nominal
power of > 100 MW
Largest resource having an estimated nominal
power of 300 MW (Estimated energy
production from power plant 2,500 GWh/a)
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Ministry of Industry, Labour and Trade - [email protected]
Hydro power know-how
in Greenland
70% of the power the national power supplier
(Nukissiorfiit) is producing is hydropower
Currently 5 active hydro power plants
Hydro power plant in Buksefjorden was constructed
1990-1993
Hydro power plant in Tasilaq constructed in 2002-2005
Hydro power plant in Qorlortorsuaq constructed in 2004-
2007
Hydro power plant in Sisimiut constructed in 2007-2010
Hydro power plant in Ilulissat constructed in 2010-2013
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Ministry of Industry, Labour and Trade - [email protected]
Potential usage of hydro power
Hydro power can be utilized
in Energy intensive
industries such as:
Aluminium industry
Steel industry
Copper industry
Chemical industry
Datacentres
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Ministry of Industry, Labour and Trade - [email protected]
Overview of hydro power potentials
in western Greenland
Hydro potentials in western
Greenland based on the 2005
report
3 areas of particular interest are:
Tasersiaq (07.e)
Søndre Isortup Isua (07.d)
Imarsuup Isua (06.g)
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Ministry of Industry, Labour and Trade - [email protected]
Hydrological measurements
The ongoing data collection from Greenlandic hydropower potentials
covers amongst others:
Run-off
The average annual water run off in hm³ = mio. m³ from the
surrounding area
Reservoir size
Size of a natural or artificial lake than can be used to contain
water from periods with surplus run-off. The size is estimated
from best available maps and is given in hm³ = mio. m³
Head (the height of the water drop)
Maximum net height in meters of the water drop i.e accounting
any potential loss in the waterways
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Hydro power potential at
Tasersiaq (No. 07.e-1)
Available data from 1975 and forward
Ongoing hydrological measurements such as
Run-off (2160 hm³)
Reservoir size (2240 hm³)
Head (the height of the water drop) (620 m)
Estimated nominal power of 300 MW
Estimated energy production from potential power
plant 2500 GWh/a (equal to yearly consumption of
3.3 mio. people based on world average
consumption)
Estimated construction cost 2982 mio. DKK. ( approx.
401 mio. €)
Detailed preliminary examinations incl. engineer
geological reconnaissance for dams, tunnels,
transmission cables and other infrastructure
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Hydro power potential at
Søndre Isortup Isua (No. 07.d)
Available data from 1975 and forward
Ongoing hydrological measurements such as
Run-off (1000 hm³)
Reservoir size (1000 hm³)
Head (the height of the water drop) (430 m)
Estimated nominal power of 125 MW
Estimated energy production from potential power plant 1000 GWh/a
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Hydro power potential at Imarsuup
Isua (No. 06.g)
Available data from 1974-94
Ongoing hydrological measurements such as
Run-off (1000 hm³)
Reservoir size (1080 hm³)
Head (the height of the water drop) (635 m)
Estimated nominal power of 154 MW
Estimated energy production from potential power plant 1480 GWh/a
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Ministry of Industry, Labour and Trade - [email protected]
Specific Greenlandic hydro power project –
Aluminium smelter at Maniitsoq
Combination of the
two largest potentials
mentioned above
Project plans for
aluminium smelter
located in Maniitsoq
Other locations might
of cause be possible
The following data is
based on location in
Maniitsoq
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Specific Greenlandic hydro power
project – Aluminium smelter
CAPEX 20 billion DKK approx. 2.68 billion €
Project lifetime min. 45 years
Production approx. 400,000 tons per annum
Construction phase
Hydro power plants approx. 4-5 years
Transmission cabling & smelter approx. 2-3 years
Infrastructure approx. 7 years
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Specific Greenlandic hydro power
project – Aluminium smelter
Labour effects:
Construction phase
2600 persons
Operation phase
650 persons/annum
Indirect labour effects
300 persons/annum
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Ministry of Industry, Labour and Trade - [email protected]
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Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists
Hydropower and energy intensive industries
Export of Greenlandic ice and water
Mineral Resources
Export of ice and water
81% of Greenland is covered by the
ice cap
The ice cap holds around 10% of the
worlds fresh water-resource
The market for bottled water has
been growing (four licences granted)
This industry in Greenland is still in
its initial phase, but there has been
interest from among others the Asian
market
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Investment possibilities in Greenland
New Airports to lower airfares and increase the number of tourists
Hydropower and energy intensive industries
Export of Greenlandic ice and water
Mineral Resources
Iron ore
(Isukasia)
London Mining
Ruby/Sapphire
(Fiskenæsset)
True North Gems
Advanced projects
Zinc/lead
(Citronen Fjord)
Ironbark Zinc Greenland
REE/Uranium
(Kuannersuit)
Greenland Minerals & Energy
Anorthosite
(White Mountain)
Hudson Resources
London Mining -
Iron ore project
Exploitation license
signed October 2013
License transferred to
Chinese company
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London Mining (Isukasia)
• CAPEX USD 2.35 billion
• Employees
o Construction up to 3,300
o Production 700
More than1 billion tonnes of
JORC Fe resources
32-33 % Fe will be concentrated
to a 65-70 % quality iron procuct
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True North Gems
• Ruby/Sapphire project
• Mine constructed in 2015/2016
• Export potential 8 million carrats
gemstones annually
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Ironbark Zinc Limited
Zinc+lead project – Citronen Fjord
Capital investment of approx. US$ 430 millions
71-132m tonnes of ore with a fineness of 4.5-5.7% zinc+lead
Planned production of 14 years' mining
3.3m tonnes mined every year
Construction phase: 450 employees. Operational phase: 250-300 employees
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The Citronen Fjord mine will be one of the
10 largest zinc mines worldwide
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The area around Kuannersuit (Kvanefjeld)
4 km
Kvanefjeld: 619 Mt
4.79 Mt REO,
283 M lbs U3O8
1M tonnes Zn
New finds (zones)
Licence boundary
Greenland Minerals & Energy (GME)
REE + uranium project - Kuannersuit
Greenland Minerals & Energy -
REE + uranium multi element project
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The capital investment is currently
estimated at approx. US$ 900 million
GME has concluded a co-operation
agreement with China Non-Ferrous Metal
Base case feasibility study: Processing in
Greenland into an uranium oxide (yellow
cake) and a rare earth carbonate
1,500 employees (construction)
700 employees (operation)
Planned infrastructure at the mining site, tailing depot, harbour, road and houses
Hudson Resources
Anorthosite – White Mountain
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Anorthosite
is used for
• Capital investment of more than DKK 200m
• 0.2 m tonnes mined every year, may increase to 0.5 m tonnes
• Enough anorthosite for 120 years of mining
• 50 employees during the production phase (primarily locals)
Greenland Oil & Gas
• Status for the last two strategy
periods (2003-2009-2013) – 10
years of SUCCESS.
• Licensing rounds approximately
every 2. years: 2002, 2004,
2006, 2007 (2008), 2010, 2012
and 2013
• In total 214,467 km2 offshore
West and East Greenland have
been covered by exploration
and exploitation licences
2012
and
2013
2002
and
2004
2006
and
2007
2010
2007
and
2008
The Licensing Policy
New Licensing Strategy for the
period 2014 – 2018:
•Having licensing rounds and open
door license areas in the following
areas:
• Jameson Land (2014)
onshore – open door
• South Greenland (2014)
offshore – open door
• Disko/Nuussuaq (2016)
Onshore
• Baffin Bay (2017)
offshore
• Nuuk West (2018)
offshore
The Licensing Policy
2014
2014
2016
2017
2018
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Thank you
