Naalakkersuisut, which is the government of Greenland, has stripped a Chinese mining company of its license to an iron ore deposit near Nuuk.
“Naalakkersuisut has decided not to grant further deadline extensions to the company London Mining Greenland A / S. The exploitation permit at Isukasia in West Greenland is therefore being returned,” the government said in a statement on 22 November
London Mining Greenland went bankrupt in 2015 and the Chinese coal and iron importer General Nice took control of the Isua mine project.
The government of Greenland said that it issued an exploitation permit aimed at iron ore for an area near Isukasia in West Greenland on 23 October 2013 but now eight years later, the project has not yet developed into a mine.
Minister for Housing, Infrastructure, Raw Materials, the Area of Justice, and Gender Equality, Naaja H. Nathanielsen said, “We can not accept that a licensee repeatedly fails to meet agreed deadlines. Nor can we ignore the fact that a rightholder, despite repeated reminders, does not deposit the agreed amounts. If a rightholder cannot live up to his obligations, others must be given the opportunity. This is a fundamental principle in the Mineral Resources Act.”
“The rules in the Mineral Resources Act have been created to ensure a good framework for mining and to ensure progress in the projects and create income for the country. Naalakkersuisut takes raw material development seriously and wants serious partnerships,” the Minister noted in the statement.
Moreover, the government said that the London Mining area will be offered to new interested companies once it has formally been handed back. “In parallel with the return, the Mineral Resources Authority is now starting to prepare for the reopening of the area for new applicants. The reopening will take place in public,” the statement said.