Slide 1
Perspectives from Greenland –
Achievements and challenges
Slide 2
”The Committee for Greenlandic mineral resources
to the benefit of society”
• A collaboration between UCPH and Ili...
Slide 3
The task - given by the rectors
•Analyse the practical potential for
extraction of mineral resources…”
•….how does...
Slide 4
A good point of departure
 Proven and well
described reserves
of great potential
 Adequate and well
developed le...
Slide 5
Note: Excl. interest payments. GDP estimated in 2012. Forecast from sustainability
model with 1 per cent productiv...
Slide 6
And Asia is still hesitant…
Slide 7
10 main challenges and barriers
1. A small population = 56.000 - and labour force = 25.000
- not sufficiently educ...
Slide 8
Naalakkersuisut has launched a strategy
Naalakkersuisuts Oil and Mineral strategy:
-> 3-5 mines before 2018
-> 1 o...
Slide 9
The Greenlandic dilemma
Close correlation between level of activity
and import of workforce and government revenue...
Slide 10
Requires launch of new large
project every other year until 2040
Scenario 3 – full speed and building up a
wealth...
Slide 11
Scenario 4 – multi-pronged strategy
Max. 5 projects in total launched
in special zones in the course of
20 years
...
Slide 12
What happens next?
• Small steps have been
taken in order to reach
out to DK for investment
• A strategy for indu...
Slide 13
Slide 14
Slide 15
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Perspectives from Greenland – Achievements and challenges

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Minik Rosing, Professor in Geology at University of Copenhagen and Chair of the Committee for Greenlandic Mineral Resources for the Benefit of Society.

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  • Ressembles mineral strategy
  • A solution suggested
  • Perspectives from Greenland – Achievements and challenges

    1. 1. Slide 1 Perspectives from Greenland – Achievements and challenges
    2. 2. Slide 2 ”The Committee for Greenlandic mineral resources to the benefit of society” • A collaboration between UCPH and Ilisimatusarfik, University of Greenland • A 360 degrees analysis on how Greenland (and Denmark) can benefit from extraction of natural resources • 13 researchers • A cross-disciplinary project: Law, biology, sociology, geology, Asian studies, Security studies, economics, history. • 450 pages of peer reviewed background papers • The report – in Danish, English and Greenlandic – ”To the benefit of Greenland”
    3. 3. Slide 3 The task - given by the rectors •Analyse the practical potential for extraction of mineral resources…” •….how does this potential relate to the scope of any potential extraction projects defined by investment requirements, labour requirements during construction, mining and closure phases as well as the life cycle and environmental impacts….” •”How exploitation of natural resources can create value in Greenland and Denmark…”
    4. 4. Slide 4 A good point of departure  Proven and well described reserves of great potential  Adequate and well developed legislation  General political stability  Good ranking among mining companies  Strong marketing efforts
    5. 5. Slide 5 Note: Excl. interest payments. GDP estimated in 2012. Forecast from sustainability model with 1 per cent productivity growth. Source: Statistics Greenland, Economic Council of Greenland. BUT a challenged economy – foreign investments are necessary = 800 mio. dkk per year
    6. 6. Slide 6 And Asia is still hesitant…
    7. 7. Slide 7 10 main challenges and barriers 1. A small population = 56.000 - and labour force = 25.000 - not sufficiently educated 2. A small and challenged economy causes need for foreign investment 3. Lack of resources in administration. Bottle neck problems 4. Infrastructure is lacking and large investments are needed 5. Global market trends > commodity prices dropping after anomalous high 6. Reluctance towards Danish ”interference” 7. Profits are smaller than expected and the potential has been exaggerated 8. Citizens are feeling excluded from the processes 9. Risk of jeopardizing renewable resources and marginalizing Greenlandic population if extraction projects are introduced too quickly 10.The need for a ressource wealth fund
    8. 8. Slide 8 Naalakkersuisut has launched a strategy Naalakkersuisuts Oil and Mineral strategy: -> 3-5 mines before 2018 -> 1 or 2 offshore oil drillings every second year ”To the benefit of Greenland”: -> Maximum 1 mine before 2018 Oil production might be possible in 20-50 years
    9. 9. Slide 9 The Greenlandic dilemma Close correlation between level of activity and import of workforce and government revenue. Independence based on revenue from mining could jeopardize independence for the present population – infrastructure would belong to foreign investors
    10. 10. Slide 10 Requires launch of new large project every other year until 2040 Scenario 3 – full speed and building up a wealth fund  Very small reduction in block grant  Quick rise in profits – Quick reduction when ”low hanging fruits” exploited  Increase in revenue only until 2027  Yield on interest of about 5 % may be used every year  Quick increase need for international labour
    11. 11. Slide 11 Scenario 4 – multi-pronged strategy Max. 5 projects in total launched in special zones in the course of 20 years  Wealth fund  Very small reduction in block grant  Increase in revenue only until 2027  Yield on interest of about 5 % may be used every year  In the course of 10 years the revenue from fund and in increase in public spending willbalance  Build up new sources of income
    12. 12. Slide 12 What happens next? • Small steps have been taken in order to reach out to DK for investment • A strategy for industry- development on the way • But also necessary to self- evaluate administration and transparency issues > need to turn the proces and start with citizen and introducing industry and nature • preservation zones
    13. 13. Slide 13
    14. 14. Slide 14
    15. 15. Slide 15

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