Greenland has stripped a Chinese mining company of its licence to an iron ore deposit
Greenland said on Monday it has stripped a Chinese mining company of its licence to an iron ore deposit near the capital Nuuk, dealing a blow to attempts by Chinese companies to gain a foothold on the resource-rich Arctic island.
General Nice, a Chinese coal and iron ore importer, took control of the Isua mine project in 2015, replacing previous owner London Mining, which went bankrupt.
It was the first Chinese firm to have the right to exploit minerals in Greenland, which has attracted international interest as climate change has opened up waterways and access to the vast Arctic island’s mineral resources.
The licence was withdrawn because of inactivity at the site, the government said in a statement, adding it will be offered to new interested companies once it has formally been handed back.
The company also failed to make the agreed guarantee payments, it said.
“We cannot accept that a licence-holder repeatedly fails to meet agreed deadlines,” Greenland’s Resources Minister Naaja Nathanielsen said.
The government requested that all geological data is returned, remaining payments of 1.5 million Danish crowns are deposited, and the mining area is cleaned up.
London Mining, which obtained the exploitation licence in 2013, had initially planned to hire some 2,000 Chinese workers to construct the project and aimed to supply China with around 15 million metric tonnes of iron ore a year.
However, it failed to secure sufficient financing.
Greenland’s government, elected in April, has said it supports environmentally responsible mining.
This year it banned uranium mining, effectively halting development of the Kuannersuit mine, one of the world’s biggest rare earth deposits, which is partly-owned by a Chinese company.
General Nice also attempted in 2016 to buy an abandoned naval station in Greenland from Denmark, but Copenhagen vetoed the offer because of security concerns, sources told Reuters at the time.
General Nice could not be reached for comment.
In 2018, Greenland rejected an offer from a Chinese state bank and a state-owned construction company to finance and build two airports in Greenland.
Source: reuters.com
Latest Posts
Popular Post
- Serbia Lece gold mine in the hands of a phantom company from Dubai
- Oil and gas company MOL cuts CAPEX, focus on projects in Croatia, Russia, Pakistan
- Mining concessions, fees and challenges for investors in Serbia
- What Are The Major Natural Resources Of Macedonia?
- Who are the main players in the ore exploration business in Serbia
- Albania chromium mines face closure
- Lukoil Romania Petrotel oil refinery prepares for Iran oil
- Tara Mines bids to extract last of Bula resource and end long-running saga
- Koc Holding to acquire majority in 12 Irish gold mines
- Raptor Resources granted license to prospect for gold in Ireland