Change Language

Simple legislation to attract major mining companies

A more transparent regulatory framework, open data, and an active presence in international markets are intended to make Greenland an attractive and stable mining nation.

Greenland’s mineral sector is entering a new phase, where the goal is to combine international interest with local anchoring and stable conditions. The bottlenecks for the mining industry have been removed one by one, creating strong global interest. Jørgen T. Hammeken-Holm, Permanent Secretary at the Ministry of Business, Mineral Resources, Energy, Justice, and Equality, sees a clear shift in how Greenland is received on the global mining scene:

“We are often asked what we are actually doing to attract investment. The answer is that we set very clear regulatory frameworks, provide free data, and travel out into the world to show that Greenland is a professional, stable, and responsible country to invest in,” he says.

A key initiative is Greenland’s participation at PDAC in Toronto, the world’s largest trade fair for exploration and mining. Here, Greenland presents its mineral data, new geological opportunities, and an expanding network of Greenlandic service companies each year.

“We travel to PDAC with around 60–70 representatives from the private sector — from lawyers to airlines and geologists. Our main message is that investments in Greenland end up in professional hands. We provide all data free of charge, both our own and those from private companies. It is a quick win for all parties,” Hammeken-Holm explains.”

Jørgen T. Hammeken-Holm, Permanent Secretary at the Ministry of Business, Mineral Resources, Energy, Justice and Equality

A sensitive but stable investment climate

Most companies exploring for minerals in Greenland are smaller exploration firms with limited capital. They raise financing year by year, which means that sentiment in the global capital markets is quickly felt — also in Greenland.

“What matters to investors is that they can plan ahead. They look at the political climate — whether there is a risk of radical changes. In that regard, we are on the safe end of the global scale. Everything is democratic, and everything is put out for consultation. That creates trust,” he says.

He acknowledges, however, that certain political decisions — such as the uranium legislation — have previously created uncertainty in the market. “But again — the process has been open and democratic, and that in itself sends a positive signal. The industry can quickly adapt to new conditions,” he says.

Infrastructure and energy as key elements

Transport and energy are two of Greenland’s biggest geographical challenges — but also two of its biggest opportunities.

“Most projects are located close to deep fjords, which allows transport by sea. We have examples such as the Lumina mine near Kangerlussuaq, which brings everything in and out by ship,” says Jørgen Hammeken-Holm.

Energy prices and CO₂ footprints have also become more central. The Ministry requires licence holders to assess when it becomes economically viable to switch from generators to green energy. “We ask companies to prepare the necessary reports, and we have the option to enter into joint investments where it makes sense,” he says.

Clearer rules and faster procedures

A modernisation of the legislation has made the rules easier to understand and apply.

“We have now separated the Mineral Resources Act and the Mining Act, which has provided much-needed clarity. Companies can obtain exploitation licences more quickly, allowing them to raise capital. The market has responded positively to that,” says Jørgen Hammeken-Holm.

The Ministry has also streamlined case processing. An exploitation licence can be granted within one year, while an exploration licence takes only about three months. This is significantly faster than in many other countries.

Global competition and a need for partnerships

Greenland competes in a market where major powers such as China, the United States, Japan, and the EU are investing heavily to secure access to critical minerals.

“The major companies want world-class deposits. That is why we see a need for governments to engage more actively. In the EU, we already cooperate on exploration and data, but what is needed now is investment in exploitation,” says Jørgen Hammeken-Holm.

He estimates that Greenland currently has detailed geological data for about 40 per cent of the country — but that the remaining 60 per cent still holds great potential.

“There may well be additional world-class deposits waiting to be found. But mapping the remaining areas costs up to 100 million euros. That requires major partners, and only few private investors can handle that level of investment and timeframe,” he says.

A long, steady effort

An essential task for the Government of Greenland is to minimise bottlenecks for mining development. And Greenland is today among the fastest and most stable countries in which to operate a mine. Jørgen Hammeken-Holm reminds us that mineral development takes time. From exploration to an operating mine, the global average is around 16 years.

“We don’t have a tree you can simply pick minerals from. Projects take time, but the good thing is that there is not a high level of public opposition in Greenland. Politicians and citizens know that it is a long-term process,” he says.

Related Posts