Download Government of Greenland Highlights

Government of Greenland
Highlights
(Mineral Prospecting, Exploration and Exploitation)
Bureau of Minerals and Petroleum
January 2013
Contents
Preface ................................................................................................ 3
About this booklet .............................................................................. 4
What is the BMP? ............................................................................... 4
Why Greenland? ................................................................................. 4
Application Procedures ...................................................................... 5
Licence types ...................................................................................... 5
Contacts .............................................................................................. 7
2
Government of Greenland highlights 2013
Preface
As the responsible Minister for Industry and Mineral Resources I hereby
present the Government of Greenland highlights to you. In recent years
Greenland has seen an unprecedented international interest in both mineral, oil
and gas potentials in the Greenlandic underground.
The increased interest shown by the industry has been driven by intensive
marketing of the Greenlandic mineral resource potential and also by
favourable price developments for minerals.
London Mining has applied for an exploitation license at the Isukasia iron deposit. Some of the
advanced mineral projects exploring for, zinc and rare earth elements (REE) have now reached a
crucial phase and feasibility studies are expected to be finalised during 2013 and 2014. It is thus
possible that more mining projects will see the light of day in the coming years.
Greenland – a treasure of mineral resources
- One-door-stop authority
- Stable, efficient and flexible administration
- Access to geological data via the Geological Survey
It is my hope that during the next five to ten years we have more than five active mines and more
than one thousand residents employed in this industry. This development has to take place in an
environmentally and socially sustainable manner and in view of increased employment, business
involvement and earnings.
Yours faithfully
Ove Karl Berthelsen
Minister for Industry and Mineral Resources
Government of Greenland highlights 2013
3
About this booklet
This booklet contains highlights of the most
relevant information relating to the mineral
regulation in Greenland. The booklet has been
prepared by the Bureau of Minerals and
Petroleum (BMP), which is the administrative
body under the Government of Greenland
responsible for mineral licence processing in
Greenland. For further information please
visit the BMP website (www.bmp.gl).
What is the BMP?
The Bureau of Minerals and Petroleum
(BMP) is a part of the administration under
the Government of Greenland and is the only
authority for administration of mineral
resources in Greenland under the Mineral
Resources Act. The BMP office is located on
the west coast of Greenland in the city of
Nuuk the capital of Greenland.
The BMP operates as a flexible, efficient and
practical administration in constant close
dialogue with international exploration
companies.
The BMP administration is a one-door-stop
authority, meaning that all administration is
processed via the BMP office in Nuuk.
Processing of applications, approval of
baseline studies, approval of blasting and
drilling operations, inspection at field sites
and other relevant operations relating to
exploration in Greenland is handled by the
BMP. This is done in close co-operation with
our advisers; the Geological Survey of
Denmark and Greenland (GEUS) and the
National Environmental Research Institute
(NERI).
includes guidelines regarding Environmental
Impact Assessment (EIA) and Social Impact
Assessment (SIA).
Why Greenland?
Greenland is a frontier country for exploration
and mining of mineral resources. In spite of
this frontier status Greenland has a mining
history dating back to the mid 19th century.
`Frontier country` means there are large
unexplored areas. As the ice melts and the
glaciers retreat new areas emerge from the
ice. Several exploration projects have already
been realized due to this change in the
environment.
Politically, the mineral sector in Greenland is
a highly prioritised area of growth which also
includes focus on the educational aspects of
the mining sector.
The Greenland Self Rule is a part of the
Kingdom of Denmark and has many
similarities with the Danish tradition of
administration. Compared to other frontier
countries Greenland is politically stable and
administrates on the basis of best international
practice.
Geologically several similarities have been
documented between the northern and
western part of Greenland and structures in
Canada. In Canada mines are already
operating in these structures.
It is a fact that the growing focus on new
unknown geological areas in Greenland has
created a boom in new licences.
All procedures, standard terms, rules for field
work, guidelines including the Mineral
Resources Act, can be found on the BMP
website www.bmp.gl. This website also
4
Government of Greenland highlights 2013
Application Procedures
All applications for a mineral licence must be
submitted to the the Bureau of Minerals and
Petroleum.
A correct application is defined as an
application, which is completed on the
approved BMP application form (download
the form from the BMP website
www.bmp.gl), and which according to the
BMP`s assessment adequately contains,
delineation of an area, technical and financial
information and other relevant information.
Application/Granting fees
The applicant has to pay an application fee of
DKK 3,000 for a prospecting licence and
DKK 5,000 for an exploration licence.
The applicant also has to pay a granting fee of
DKK 23,300 when a prospecting licence is
granted and DKK 33,800 when an exploration
licence is granted (index-adjusted).
For other fees and exploration commitments
see www.bmp.gl.
On the 1st and the 16th of every month,
information on all new applications and
granted licences is published on the BMP
website.
Licence area
The granted licences covers only land areas,
unless otherwise indicated in the licence. The
size of the licence area is calculated by the
BMP on the basis of the coordinates
submitted in the application. The size of the
licence area is the basis for the calculation of
the yearly exploration commitment.
The licence area may consist of up to five sub
areas, provided exploration in these sub areas
is carried out as an integrated exploration
project for either geological or logistical
reasons. The distance between any two sub
areas must not exceed 100 km. Each sub area
must be at least 5 km2. A sub area is defined
as an area which does not share a borderline
with another sub area; however two sub areas
may share a corner point.
Licence period
A licence is effective for the period indicated
in the licence.
At expiration of the first licence period (years
1-5) the licensee is entitled to a five-year
extension of the licence for the same area and
mineral resources, wholly or partly, as at the
end of the first licence period, provided that
the terms of the licence have been complied
with.
At expiration of the second licence period
(years 6-10) the licensee may be granted a
new two-year licence for years 11-12, 13-14
and 15-16 for the same area and mineral
resources, wholly or partly, as at the end of
the previous licence period, provided that the
terms of the licence have been complied with.
The licensee is not, however, automatically
entitled to have such licences granted. An
extra annual fee is imposed from year 6 and
onward.
The licensee may at any time surrender the
licence with immediate effect. Surrender does
not eliminate unfulfilled exploration
commitments.
Licence types
Prospecting licence
The prospecting licence is non-exclusive and
is normally granted for five years covering
large standard areas in West, East or North
Greenland, excluding those areas already
covered by exploration and exploitation
licences. Prospecting licences do not contain
any commitments and only limited field work
can be performed under this licence unless
approved by the BMP.
Government of Greenland highlights 2013
5
Exploration licence
The exploration licence is exclusive and
covers specified areas. It is normally granted
for five years. At expiration of the first
licence period (year 1-5) the licensee is
entitled to be granted a new 5 year licence for
the same area and mineral resources. At
expiration of the second licence period (year
6-10) the licensee may be granted a new 2
year licence for the years 11-12, 13-14 and
15-16 for the same area and mineral
resources.
This licence can cover any size of area
(minimum 5 km2) which can be enlarged or
reduced upon application. The licence area
may be wholly or partly relinquished at any
time. Exploration commitments are expressed
as expenditure obligations based on the size
of the licence area and the time for which it
has been held.
The commitments increase over time. Firstyear expenditure commitments are calculated
on the basis of the area initially granted under
the licence. For subsequent years they are recalculated according to the land area held at
the end of the year. Thus if the holder decides
to relinquish all or part of the licence in a later
year, the commitment for that year is
decreased accordingly or cancelled.
For each exploration licence, a yearly
exploration commitment is calculated on basis
of the following two components (2013
figures):
Year 1-2:….. DKK 155,200
Year 3-5:….. DKK 310,400
Year 6-10:… DKK 620,800
Year 1-2:….. DKK 1,550 per km2
Year 3-5:….. DKK 7,760 per km2
Year 6-10:… DKK 15,520 per km2
Depending on environmental conditions and
the fulfilment of exploration obligations and
6
other legal requirements, the exploration
licensee who delineates a viable mineral
deposit is entitled to an exploitation licence.
The transition between these two licence
types is described in the standard terms for
exploration licences which are found on the
BMP website.
Special exploration licence
A special three-year exploration licence with
reduced exploration commitments is available
for areas of over 1,000 km2 in North and East
Greenland.
Exploitation licence
The exploitation licence is also exclusive and
will normally comprise a restricted area
covering only the deposit. Exploitation
licences are normally granted for 30 years and
can be extended to 50 years. Licences are
only granted to limited companies domiciled
in Greenland.
If the licensee has found and delineated
commercially viable deposits which the
licensee intends to exploit and provided the
terms of the exploration licence have been
complied with the licensee is entitled to be
granted an exploitation licence
The licensee has to demonstrate the necessary
technical and financial capabilities needed to
establish an operating mine. An exploitation
licence allows the licensee to construct the
facilities needed for the project, subject to the
approval by the BMP of the development
plan. This plan should include an
environmental impact assessment (EIA), a
social impact assessment (SIA) and a closure
plan.
The economic terms in an exploitation licence
will be taxation according to Greenland
legislation. Local work force and local firms
are to be involved to the greatest possible
extend.
Government of Greenland highlights 2013
Contacts
_____________________________________
Applications are forwarded to the BMP:
Bureau of Minerals & Petroleum (BMP)
Imaneq 1A - 201
P.O. Box 930
3900 Nuuk
Greenland
Tel: +299 34 6800
Fax: +299 324302
Email: [email protected]
Website: www.bmp.gl
_____________________________________
Geological Survey of Denmark and
Greenland (GEUS)
Øster Voldgade 10
DK-1350 Copenhagen K
Tel: +45 3814 2000
Email: [email protected]
Website: www.geus.dk
Geological reports can be retrieved from the
GEUS DODEX geological database:
http://www.geus.dk/dodex/index.html
____________________________________
Danish Center for Enviroment and Energy
(DCE), Aarhus University
P.O. Box 358
Frederiksborgvej 399
DK-4000 Roskilde
Tel: + 45 8715 5000
Fax: +45 8715 5010
Email: [email protected]
Website: www.dmu.dk
_____________________________________
__________________________________
Institute of Natural Resources
P.O. Box 570, 3900 Nuuk, Grønland
Tlf: (+299) 36 12 00; Fax: (+299) 36 12 12;
E-mail: [email protected]
Hjemmeside: www.natur.gl
_____________________________________
Greenland School of Minerals and Petroleum
P.O. Box 1001
3911 Sisimiut
Greenland
Tel: +299 86 76 00 / +299 86 44 88
Fax: +299 86 45 28
Email: [email protected]
Website: www.sanilin.gl
_____________________________________
Other websites of interest for the explorationand mining industry:
www.greenland.com
www.greenmin.gl
www.nanoq.gl
www.ujarassiorit.gl
www.ga.gl
_____________________________________
Government of Greenland highlights 2013
www.bmp.g
7
8
Government of Greenland highlights 2013