Mineral Strategy Objectives and plans for mineral exploration in Greenland

Transcription

1 namminersornerullutik oqartussat grønlands hjemmestyre the greenland home rule government Aatsitassanut Ikummatissanullu Pisortaqarfik Råstofdirektoratet Bureau of Minerals and Petroleum Mineral Strategy 2004 Objectives and plans for mineral exploration in Greenland

2 Mineral Strategy 2004 Continuous publication of Bureau of Minerals and Petroleum No. 2 Published December 2004 Printed December 2005 ISBN The Greenland Home Rule Government Bureau of Minerals and Petroleum Phone Fax bmp@gh.gl Imaneq 29 P.O. Box Nuuk Greenland

3 Mineral Strategy 2004 Contents Contents Background and objectives of the Mineral Strategy 2004 of the Bureau of Minerals and Petroleum Organisation and division of work in the mineral industry Administrative system and the previous mineral strategy Objectives Mineral strategy themes Geological efforts - status and evaluation Geological knowledge base Geological mapping Geophysical mapping Geochemical mapping Databases Metallogenetic provinces Summary Marketing of mineral potentials in Greenland Status and evaluation of international marketing Status and evaluation of information in Greenland Future marketing Future information activities in Greenland Summary Economic and administrative terms and procedures Frameworks for a revision of economic and administrative terms and procedures Economic and market terms for the exploitation of minerals in Greenland Benchmark of levels of taxation and royalty Potential future royalty regimes Licence period and work commitment Size of exploration obligations Carry forward and back of profits/losses between the years Payment of compensation Approved exploration expenses Summary Notes page 3

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5 Mineral Strategy Background and objectives of the Mineral Strategy 2004 of the Bureau of Minerals and Petroleum Mineral resource activities in Greenland, i.e. the prospecting, exploration and the exploitation of minerals, are handled mainly by the international mining and exploration industry. A few local companies in Greenland also are active in mineral exploration and mining activities Organisation and division of work in the mineral industry In recent times, it has been a characteristic feature of mineral exploration in Greenland that the initial exploration has typically been conducted by the so called junior companies with a view to maturing projects. In this respect Greenland resembles other so called frontier areas" i.e. areas that, in comparison with countries having similar geological formations, are underexplored in terms of minerals. The level of geological knowledge is a central factor in companies prioritisation of exploration areas. In a survey of the mining industry conducted by the World Bank 1 it is pointed out that the crucial factor in companies choice of area is the area s mineral potential. Depending on the type of company, this factor is weighted somewhere between half and two thirds of the companies decision-making basis. Overview of the most significant parameters for mineral investments in a given country: Geological potential for relevant metals and minerals Political stability Mineral legislation Security of property rights and rights to exploitation, exploration and exploitation conditions, rights to transfer ownership etc. Taxation conditions Stability and predictability of taxation conditions, reasonable taxation regimes and level of taxation, possibility of repatriating dividend etc. Institutional factors page 5

6 1.1. Organisation and division of work in the mineral industry With a sufficiently high level of geological knowledge it is possible to define concepts like metallogenetic provinces, mineralisation belts or ore provinces. These are to be considered equal concepts which largely cover the fact that certain regions have extraordinarily large occurrences of a specific metal (e.g. gold) or a specific metal community (e.g. nickel-copper or lead-zinc). Mineralisations are not evenly spread over the globe but concentrated in specific regions. The Kalgoorlie- Kambalda region in West Australia, for example, represents one-third of gold production in Australia even though the region accounts for less than 1% of Australia s land area. These regions attract a substantial part of global exploration activity because the companies are certain that the geological processes in these regions have managed to concentrate the metals in the form of mineralisations. Therefore, to attract the industry s interest, it is particularly important for a frontier area like Greenland to be able to point to the presence or at least a potential presence of metallogenetic provinces. The Bureau of Minerals and Petroleum has as its overall objective to enhance the specific knowledge of significant mineralisation images in Greenland with a view to defining metallogenetic provinces. The strategy to achieve this objective is described in section 2. Junior companies traditionally run more risks than the well-established mining companies, conducting, for example, exploration in so called frontier areas. Junior companies are usually not financially strong but base their activities on external finance raised in connection with the individual exploration projects through, for example, share issues on stock exchanges and private placements 2. Junior companies are therefore particularly vulnerable to international economic fluctuations. The established mining companies are normally much larger and financially stronger companies building up their ore reserves by conducting exploration in the ore province in which they are already carrying on mining activities. Expansion into new areas is normally done on a more conservative basis, e.g. through acquisitions of junior company projects developed to contain as a minimum one identified resource. Hence, the patterns of the procedures used by the junior companies and the established mining companies respectively in the field of mineral exploration are different. The procedures complement each other more than they compete. In other words, they reflect an international trend in the exploration industry towards a division of work between exploration oriented junior companies and exploitation oriented mining companies. In addition to the exploration conducted by junior companies, Greenland has also benefited from the abovementioned division of work in other ways. In their search for partners and capital, junior companies have helped to spread the knowledge of the mineral potential in Greenland through direct channels in the industry. Junior companies have significantly contributed to promoting Greenland as an attractive area of exploration. page 6

7 Mineral Strategy Administrative system and the previous mineral strategy The administration of mineral resources in Greenland takes place within the framework of a special mineral resources system between Greenland and Denmark. Political responsibility for mineral resources lies with both Greenland and Denmark. As part of the mineral resources system, a Joint Committee on Mineral Resources in Greenland has been set up as an advisory body composed of Greenlandic and Danish politicians. In 2004, a joint Greenlandic/Danish Commission on Self-Government in Greenland was set up to consider, among other things, the existing mineral resources system. The Commission is expected to complete its work in The terms and conditions for mineral resource activities in Greenland are laid down in the Mineral Resources Act 3. The Bureau of Minerals and Petroleum, under the Greenland Home Rule Government, administers the Mineral Resources Act, including the ongoing processing by the authorities in connection with the mineral resource activities. Licences for mineral activities are processed according to the so called one stop shot principle, under which all matters to be processed by the authorities go through the Bureau of Minerals and Petroleum. This means that in most cases companies need only contact one place to obtain the necessary licences. The current Mineral Resources Act in Greenland dates from 1991 and was amended in 1993, 1995 and It is based on a preceding comprehensive analysis of the terms and conditions for the exploration and exploitation of mineral resources in Greenland. This work was carried out by a joint Danish Greenlandic committee (the Ølgaard Committee ) as a result of the unsatisfactory development within mineral resources in Greenland in the late 1980s. Private companies interest in mineral exploration in Greenland was quite low and declining. At the same time, the two existing mines in Greenland were closed down. However, this was done for natural reasons as the mineral resources in these mines were exhausted. In connection with the Ølgaard Committee s analysis, a proposal was prepared for a strategy for the exploitation of mineral resources in Greenland. The overall objective of the strategy was to achieve a higher level of exploration and exploitation activity in Greenland. To achieve this objective capital and technology would have to be attracted to mineral resource activities in Greenland in the short as well as long term. To support this objective the administrative and grant procedures for mineral licences were changed. The most significant changes were a more extensive use of standard terms for exploration licences and a simplification of the transition from an exploration licence to an exploitation licence. Today, rights holders of exploration licences have the right to be granted a 30-year exploitation licence provided that the terms for the exploration licence are met and that the proposed exploitation is capable of being commercially exploited, as documented by a feasibility study. The main elements of the new strategy included: Significantly changed concession terms, particularly for the exploitation of hard minerals, with a view to offering terms that are competitive with those of other countries. Establishment of the right of an exploring company within hard minerals to obtain a licence for the exploitation of occurrences which it has discovered and which it intends to exploit. Establishment of a changed concession system for hard minerals with fixed exploitation terms so that the economic terms especially for any exploitation is known from the start of the exploration. Based on the Ølgaard Committee s work the current Mineral Resources Act was amended to a new Mineral Resources Act in 1991, which, in accordance with the recommendations of the strategy, contains a significant reform of the terms and conditions for the exploration and exploitation of mineral resources in Greenland. Thanks in part to this reform, Greenland experienced significant growth in exploration activity in the 1990s. In 1997/98, however, a global economic crisis led to a decline in the production of industrial goods and hence also a decline in metal prices. Also the conditions for providing capital for mineral resources projects became much more difficult. This had a strong impact on the financing page 7

8 1.2. Administrative system and the previous mineral strategy of the exploration industry, which in Greenland alone led to a decline in the companies total exploration expenditure from DKK 105 million in 1997 to DKK 47 million in In 2003/2004, exploration activity started to grow again. In the meantime, substantial exploration expenses had been spent on the gold project Nalunaq in South Greenland, which resulted in the opening of a gold mine in olivine project in Niaqunngunaq/Fiskefjord and the gold-palladium project in the Skærgård intrusion at Kangerlussuaq in East Greenland. In other words, increased global activity in the exploration industry has also left its mark on Greenland, in the form of a growing number of exploration licences in particular saw a very sharp increase in the number of issued exploration licences. The growing exploration activity includes the implementation of a number of capital-intensive projects like the * Prospecting licenses Exploration licenses Km 2 under Exploration licenses ,029 10,790 8,788 23,127 60,525 53,594 23,779 11,459 11,289 10,264 5,956 5,714 13,502 * Calculated at 15 November 2004, including applications for prospecting and exploration licences. Figure 1 Increase in the number of exploration licences etc since page 8

9 Mineral Strategy Objectives It has been more than 10 years since the Ølgaard Committee s proposal for a strategy was presented and implemented in the Mineral Resources Act. It is therefore natural to evaluate whether the objectives of this strategy have been met and whether a revision of the strategy is needed. It is against this background that the Bureau of Minerals and Petroleum is now presenting a new mineral strategy. In preparation for an evaluation and revision of the strategy in the mineral resources area, various working groups were set up to work on procedures and terms and conditions, marketing and geology. In that connection, seminars and meetings were held with a view to mapping experience from mineral exploration activities in Greenland and identifying matters which could be improved with advantage. These meetings and seminars were attended by the Danish Energy Authority, the Geological Survey of Denmark and Greenland (GEUS), the National Environmental Research Institute (DMU), Greenland Resources A/S, the Raw Materials Group, Greenland Service Partners, MPH Consulting and the Bureau of Minerals and Petroleum. The objectives of the Bureau of Minerals and Petroleum s Mineral Strategy 2004 are: For many years, there has been broad political consensus in Greenland that efforts should be made to develop the mineral resources sector into a sustainable industry that can make a positive contribution to economic development and to the creation of new jobs. This goal is an important element of the long-term economic policy in Greenland, which, among other things, incorporates the development of industries other than fisheries and the need/desire/wish for less dependence on the annual block grants from Denmark. Development of the mineral resources sector must proceed in a way that is of the greatest benefit to Greenland society. Society must be assured of a reasonable share of the profits accruing from extraction, just as local communities must be assured of knowledge and information concerning this activity to ensure, among other things, that the local work force and local firms are involved to the greatest possible extent. A clear political condition for all mineral resource activities is that these activities must be carried out with due regard for safety and the environment. The Arctic environment is very vulnerable, and Greenland s economic life and culture are closely bound to nature and the environment. To make Greenland an attractive exploration area. To secure a reasonable proportion of profits from extraction for society. To ensure that licence terms are reasonable for both small and big companies, robust to fluctuating market trends and simple and easy to administer by companies and authorities. To enable the strategy to be implemented within the framework of the current mineral resources system between Greenland and Denmark. page 9

10 1.4. Mineral strategy themes 1.4. Mineral strategy themes To be able to make mineral finds capable of being utilised commercially and, in this way, support the desire for increased employment and earnings in society, the level of exploration activity must constantly be sufficiently high. Another prerequisite is that the exploration activities are handled by the commercial mineral industry, both for financial reasons since mineral exploration activities are very capital-intensive, and because of the need to ensure maximum commercial and professional expertise in the conduct of exploration. Making the mineral industry interested in investing in exploration in Greenland therefore remains the most significant overall objective of the strategy for mineral resource activities. However, countries all over the world are currently competing to attract the interest and investments of mineral companies. At the same time, mineral companies carefully analyse, in each individual case, the chance of making commercial finds before they decide to apply for a exploration licence. This is due to the heavy financial obligations ensuing from a licence being granted. For these reasons, the desired development in the mineral resources field in Greenland depends strongly on the Bureau of Minerals and Petroleum being able to present a trustworthy and investment-friendly picture of the opportunities and terms and conditions for exploring and exploiting minerals in Greenland. The most significant parameters in this context can be summed up as follows: prospectivity, i.e. geological data and surveys which present the probability of the subsoil holding commercial mineral occurrences. transparent and competitive licence terms. stable framework conditions. effective processing by the authorities. The Bureau of Minerals and Petroleum s Mineral Strategy 2004 is based on these fundamental parameters and the aim is to describe the focusing of efforts in the coming years to promote the desired development in the field of minerals. page 10

11 Mineral Strategy Geological efforts - status and evaluation The mineralisation pattern in metallogenetic provinces is normally summarised and explained by means of mineralisation regimes. Over time a large number of advanced geological regimes have been prepared which link special mineral occurrences with certain geological environments. A basic feature of mineralisation regimes is the link between mineral occurrences and rock community. A first step on the road to defining a metallogenetic province is therefore to couple the relation between mineralisation and rock community. The detail level of the geological data coverage sets a natural limit to how precisely the delimitation and description of the metallogenetic province can be made. It is therefore important to develop the general level of knowledge about the various geological environments in Greenland on an ongoing basis: The objective of the Bureau of Minerals and Petroleum is therefore to enhance the specific knowledge of significant mineralisation images in Greenland, with a view to establishing metallogenetic provinces at such a level of detail that they can be used directly by the exploration industry. In the immediate situation gold and diamonds in particular will be important goals for the efforts. page 11

12 2.1. Geological knowledge base 2.1. Geological knowledge base GEUS plays a central role in the development and dissemination of the geological knowledge base for Greenland. The existing knowledge has been gathered, in among other things, a large number of scientific publications and geological maps. The areas covered by these publications are distributed very unevenly in Greenland, as will be seen from Figure 2, which includes all types of publications irrespective of subject area. Only a limited number of these publications will be of direct use to the exploration industry. GEUS is therefore also bringing out publications which, in connection with the evaluation of resources in specific areas, are relevant for exploration purposes. Reference is also made to publications of interest for exploration purposes in connection with the description of the individual map sheets (map sheet descriptions). As relevant publications concerning mineral exploration are available from various sources and a large number of the publications are spread among the literature on general geology, a database of interesting exploration literature should be established, which in a simple and easy way can guide companies to relevant geological information, a one stop shot principle for relevant literature. Data coverage and the evaluation of the most significant elements of the geological knowledge base will be described in the following, divided into four themes: Geological mapping; Geophysical mapping; Geochemical mapping; and Databases. Figure 2 Number of geological publications per 1000 km 2 for Greenland 4. page 12

13 Mineral Strategy Geological mapping In all countries the main tasks of geological surveys are, among other things, to provide a regional overview of geological conditions. The international mineral industry expects to be able to obtain the products and data that provide the basis for this overview from the geological surveys. Geological maps in Greenland are mainly published at two scales: geological overview mapping at 1:500,000 and the more detailed mapping at 1:100,000. Overview mapping has been finished as all parts of Greenland are now covered by map sheets at 1:500, map sheets have been published at this scale, and the last map sheet in this series is expected to be published in 2004/5 (see Figure 3). As an important supplement to the individual maps, a map sheet description is published. Map sheet no Ice-free land area as a % in km2 Year of publication Main mapping , , , pre , , ,858 under publication , , , , , , , , Figure 3 The published map sheets vary greatly in terms of the area covered by land and by ice-free land areas. A list below shows the ice-free areas and the years in which the main geological mapping was performed because these years are not always close to the date of publication of the map sheet concerned. By way of example, most of the mapping of geology in map sheet no. 5 (Thule) was done in the years but the map sheet was not published until page 13

14 2.2. Geological mapping At the present moment, five map sheet descriptions have been prepared. In the coming years, the plan is to publish one map sheet description per year until all maps have been described. This means that it will be eight years before all map sheet descriptions have been published. The Bureau of Minerals and Petroleum therefore recommends that GEUS prepare a plan for the completion of the remaining map sheet descriptions and that they give highest priority to map sheet descriptions that support the efforts of the Bureau of Minerals and Petroleum to focus on the mineralogical aspects of West Greenland s potential for gold and diamonds in particular. The data basis of the geological map sheets at 1:500,000 varies greatly, expressed, for example, in terms of geologist field teams per 10,000 km 2 (see Figure 4). There is a factor 15 between the best mapped areas and the areas in which the mapping is actually more in the nature of reconnaissance. Figure 4 Geological map sheets 1:500,000. page 14

15 Mineral Strategy 2004 In the period from 1967 until 2004, 56 geological maps at scale 1:100,000 (see Figure 5) were published, corresponding to about one map a year. However, most of the maps were published during the period from 1971 to Geological maps are syntheses of knowledge about an area. It is important to point out that it often takes 5 to 10 years from field observations being made until the map sheet is published. The suitability of the maps for mineral exploration purposes must therefore be evaluated on an ongoing basis because the maps may be based on observations that were made before significant changes in internationally recognised scientific paradigms and hence in the mineralisation regimes used by the international mining industry. Initially, the map sheet series 1:500,000 should be evaluated to determine its suitability for mineral exploration purposes, including in particular its contribution to the delimitation and characterisation of metallogenetic provinces. Figure 5 Geological maps at scale 1:100,000. Coverage is far from complete. The choice of areas to be mapped was determined by a number of factors. In future, however, it is expected increasingly to be determined mainly by the needs of society in other words where exploration considerations make it necessary to go into greater detail than is possible at scale 1:500,000. page 15

16 2.3. Geophysical mapping 2.3. Geophysical mapping The objective of geophysical mapping is to provide geophysical data from Greenland for use in mineral exploration and in characterising geological environments. This means that geophysical mapping is an aid in geological mapping. The international mineral industry expects the authorities to conduct various forms of geophysical studies and make these data available to the exploration companies. All countries competing with Greenland to attract interest and investment have already conducted or are conducting regional air-borne geophysical surveys. For example, airborne geophysical surveys are often one of the first activities that the World Bank finances when conducting development programmes in the mineral resources sector in the third world. The geophysical methods used so far in Greenland are: magnetic measurements, electromagnetic measurements, radiometric measurements and remote sensing, including hyperspectral measurements. The method most frequently used is aeromagnetic measurements which record the various magnetic properties of rocks. This is the simplest method to use and the price per measured line kilometre is therefore lower than for other methods. Electromagnetic measurements determine the electric properties of the earth. Many ore minerals are good conductors of electric current, and large concentrations of these minerals are directly detectable by this method. The method is therefore well-suited for actual mineral exploration, but is increasingly also used as a mapping tool. Radiometric measurements only reflect the distribution of radioactive elements on the surface. The three most common elements mapped in these measurements are isotopes of potassium, uranium and thorium. Remote sensing is a common designation for methods recording radiation in the form of reflected and bent light or heat radiation. Such images, for example, from a satellite have long been used for geological mapping and mineral exploration purposes. A newly developed technology to be used from aircraft records a wider spectrum of radiation. This provides greatly improved resolution and greatly increases the reliability of the identification of minerals and rocks on the surface of the ground. Area coverage. Areas covered by modern aeromagnetic measurements (AEROMAG projects) and electromagnetic measurements (AEM Greenland projects) are shown in Figure 6. The total area covered by aeromagnetic measurements is about 250,000 km 2 and comprises 515,000 line kilometres including approx. 75,000 line kilometres in electromagnetic projects. Radiometric measurements were performed in the 1970s throughout the ice-free land area in West and South Greenland and in North East Greenland in connection with exploration for uranium. The measurements were performed as contour flights with a large distance between the lines. Both aeromagnetic and electromagnetic data record information not only from surficial rocks but also from deep-seated bodies in the ground. page 16

17 Mineral Strategy 2004 Figure 6 The areas in blue are for measurements in the AEM Greenland project for the respective years, and the areas in red are those covered by measurements from the AEROMAG projects. Figure 7 The area in East Greenland around Mestersvig which was covered by hyperspectral measurements in The small index map shows the two areas in East and West Greenland where this method has been used. page 17

18 2.3. Geophysical mapping Only two projects have been carried out for hyperspectral measurements. One in East Greenland in 2000 (see Figure 7) and one in West Greenland in 2002 (see Figure 8). The objective of these projects was to study the suitability of this method in mineral exploration and in mapping pollution from previous mining operations. It is too early yet to evaluate the hyperspectral studies, but prospects are good. The geophysical measurements from Greenland represent a dataset which in terms of quality corresponds to data made available to the exploration industry by other countries. There is a significant potential in the utilisation of the existing data, both for the geological mapping and in the exploitation work. The digital data transmission plays a significant role in this connection. Many junior companies and small consultancy firms do not have the necessary capacity to fully utilise the information contained in the geophysical data. It is therefore important that GEUS continues to present interpretations of the geophysical data which are based on modern techniques and integrate other geological information into the interpretation. Figure 8 The area in West Greenland around Kangerlussuaq which was covered by hyperspectral measurements in The Bureau of Minerals and Petroleum finds that with the present coverage of geophysical data it is of primary importance that the geophysical data are included in the characterisation and delimitation of metallogenetic provinces and that the work on interpreting the geophysical data supports the Bureau of Minerals and Petroleum s current focus on West Greenland s gold and diamond potential. page 18

19 Mineral Strategy Geochemical mapping The objective of geochemical mapping is to establish regional coverage of geochemical data for use in mineral exploration, for the geochemical characterisation of the various geological environments and for a regional description of soil and water quality. The method involves systematic collection of stream sediments, with a density corresponding to at least one sample per 30 km 2. In Greenland, geochemical mapping using stream sediments started in the early 1970s. Since the start of geochemical mapping, the area of analysis has developed significantly. This applies both to the accuracy and sensitivity of the analyses and to the cost of making the analyses. As a result, the analyses now comprise about 50 elements. This means that geochemical mapping has gained wider use, ranging from mineral exploration through characterisation of geological environments to pure environmental factors like contamination, water quality etc. As a result of the development on the analysis side, the collected stream sediments, which are stored in an archive with GEUS, have been reanalysed, partly to obtain analyses of a set of extra elements and partly to bring the quality of analyses to the same standard so that it is possible to compare analyses from one area with those of another. Figure 9 shows the parts of Greenland that are covered with stream sediment geochemistry. The figure also shows that the west coast of Greenland is covered by a geochemical atlas which means that the analyses within that area have been homogenised so that it is possible to make a direct comparison of analysis values from one area with those of another. Figure 9 Areas covered by stream sediment samples. page 19

20 2.4. Geochemical mapping In the rest of Greenland a direct comparison of analysis values is only possible between samples comprised by the same field campaign. In practice, this means that caution should be exercised when comparing the analysis values of different geochemical reports. Geochemical data are used in various ways in mineral exploration. All countries wishing to attract the exploration industry have geochemical mapping programmes whose results are made available to the industry. The regional geochemical datasets are used by exploration companies to provide the basis for the design of the companies own more detailed geochemical surveys in their focus areas. Priority in the geochemical area should especially be given to the application of these data as an integral part of the characterisation of the metallogenetic provinces together with the regional modelling and resource evaluation that these data imply. Geochemical data should also be capable of being used to characterise the inorganic environment and hence form a natural part of the environmental assessment carried out in connection with mineral resource activities. Initially, a report should be prepared based on existing data with a view to evaluating the usefulness of these data in this context. page 20

21 Mineral Strategy Databases GEUS operates as a databank for all data and information concerning mineral resources in Greenland. The databases contain information and data from various sources: GEUS s own surveys, including projects carried out by GEUS with full or partial support from the Bureau of Minerals and Petroleum, among others. Exploration and mining companies activities in Greenland. International scientific surveys. One of the objectives of the databases is to ensure storage of data for future use and documentation and to provide a basis for serving the outside world, including not least the international exploration and mining industry, in its wish for insight into geological conditions. The databases also provide the basis for GEUS s own activity in this field. Many relevant data are organised in GimmeX (Geoscience Information Management for Mineral Exploration in Greenland), a system of electronic databases, archives and application programs, which organises, stores, presents and makes various types of relevant geological data available. This area is undergoing constant development, the trend being towards making data or metadata directly available to users via the Internet. In recent years, the trend has been towards a steadily growing use of geographic information systems (GIS) because the professional world wants both primary data and metadata in digital format. The Bureau of Minerals and Petroleum and GEUS are developing more systems supporting this, including interactive digital maps of mineral occurrences. These maps can provide the basis for metallogenetic maps, which can be used interactively by users through the Internet. In addition to electronic databases, GEUS has a comprehensive archive of samples, containing, among other things, representative rock samples from areas that have been mapped. It also has an archive of stream sediments collected in connection with the regional geochemical mapping, and a core archive which represents all important mineral exploration drills. These archives are a very valuable material for additional surveys and are regularly used by the exploration industry. The Bureau of Minerals and Petroleum is of the opinion that a realistic action plan should be prepared in cooperation with GEUS for this development area IT based geological information with the aim to devise and implement this system of tools. page 21

22 2.6. Metallogenetic provinces 2.6. Metallogenetic provinces Based on the geological knowledge base with the completed overview mapping at 1:500,000 as a central element, Greenland can be divided into the following primary geological environments: sedimentary basins magmatic provinces supracrustal areas infracrustal areas These basic geological environments are shown in Figure 10. Each geological environment is characterised by a certain group of rocks. There is a very great difference between the rocks of, for example, sedimentary basins (sandstone, slate and limestone etc) and magmatic provinces (basalt, syenite and granite etc) whereas the difference between the rocks of supracrustal areas (crystalline slate, greenstone and amphibolites etc) and infracrustal areas (gneiss, migmatites, charnokites and agmatites etc) will not always be as distinctive. Figure 10 Basic geological environments onshore in Greenland. page 22

23 Mineral Strategy 2004 As previously mentioned, one of the basic features of most mineralisation regimes is the link between mineralisation and rock type. As the various primary geological environments are characterised by certain rock types, these environments will also be characterised by various types of mineralisation. For Greenland, the present knowledge base only permits a general evaluation of the types of mineral occurrences that may be expected in the above primary geological environments. A more detailed knowledge is required to define and delimit a metallogenetic province. As previously mentioned, exploration companies call these areas frontier areas, precisely because the geological knowledge base is as yet so modest that it is not possible to single out well-documented metallogenetic provinces. Frontier areas are in the nature of the case the areas that are subject to the greatest exploration risk. The exploration industry s projects in these areas are normally those that are first counted out on any reduction of the exploration budgets. To establish a more stable level of exploration in Greenland, one of the initiatives will be to define and delimit the metallogenetic provinces in Greenland. Therefore, a report should be prepared within a year, providing an overview of the individual primary/basic geological environments and the mineral occurrences associated with these environments. The report should also contain an evaluation of the initiatives required to define metallogenetic provinces in the various geological environments. Such a report will be an important element in the future prioritisation of the efforts in the mineral field. Work in the international exploration industry includes searching for and quarrying many different substances, and it is therefore important to take a correspondingly broad view when evaluating the geological potential of an area. However, the Bureau of Minerals and Petroleum is of the opinion that time has now come to focus the efforts of public authorities in the mineral field. Based on the present knowledge of the mineral potential in Greenland, combined with the logistics infrastructure, the potential of West Greenland s bedrock for gold and diamonds in particular should be mentioned. As these two mineral resources have also shown greater price robustness than many other mineral resources, the Bureau of Minerals and Petroleum considers it natural to put special focus on these mineral resources in the coming years. In the coming years, therefore, the Bureau of Minerals and Petroleum will be focusing on gold and diamonds with a view to characterising and delimiting the metallogenetic provinces in West Greenland in which they occur. page 23

24 2.7. Summary 2.7. Summary In the geological field the Mineral Strategy will promote the following objectives for the next few years: To enhance the specific knowledge of significant mineralisation images in Greenland, with a view to establishing metallogenetic provinces at such a level of detail that they can be used directly by the exploration industry. To establish a database of interesting exploration literature which can guide the companies to relevant geological information - a one stop shot principle for relevant literature. To recommend GEUS to prepare a plan for the completion of the remaining map sheet descriptions and give highest priority to those that support the efforts of the Bureau of Minerals and Petroleum to focus on the mineralogical aspects of West Greenland s potential for gold and diamonds in particular. Initially, to evaluate the map sheet series 1:500,000 to determine its usefulness in mineral exploration, including in particular its contribution to the delimitation and characterisation of metallogenetic provinces. That the geophysical data are included in the characterisation and delimitation of metallogenetic provinces and that the work on interpreting the geophysical data should support the Bureau of Minerals and Petroleum s focus on West Greenland s gold and diamond potential. That special priority in the geochemical area is given to the application of these data as an integral part of the characterisation of the metallogenetic provinces together with the regional modelling and resource evaluation that these data imply. That geochemical data should also be capable of being used to characterise the inorganic environment and hence form a natural part of the environmental assessment carried out in connection with mineral resource activities. Initially, a report should be prepared on the basis of existing data with a view to evaluating the usefulness of these data in this context. That a realistic action plan should be prepared in cooperation with GEUS for this development area IT based geological information with the aim to devise and implement this system of tools. page 24

25 Mineral Strategy Marketing of mineral potentials in Greenland The strategy behind the passing of a new mineral resource act in 1991 placed special emphasis on the need for active information and marketing of Greenland s mineral resources potential. Within information and marketing the strategy incorporated the following main elements: Preparation of comprehensive information material about Greenland of a general and a specific nature, aimed at the international mining and oil industry. Preparation of information material on an ongoing basis, aimed at the Greenland population about the development in mineral resources. Public authorities engaging in more active efforts aimed at the mining and oil industry with a view to promoting international investments in mineral resource activities in Greenland Status and evaluation of international marketing The marketing efforts that have been pursued since 1991 in relation to the international industry to promote Greenland and the Greenlandic mineral resources potential can be divided into two groups: fair/conference participation and publication of data and preparation of information material. Fairs and conferences. Following a study of a number of fairs and conferences it was decided to participate every year in three annual fairs, namely Cordilleran Exploration Roundup in Vancouver in January, the PDAC fair in Toronto in March and the Northwest Mining Association's fair in Spokane in December. In 2000, it was decided to concentrate marketing efforts in the North American continent to the fairs in Vancouver and Toronto. Through participation in these fairs Greenland has moved from being a fairly unknown frontier area to being a well-known potential for mineral exploration on equal terms with other areas in the Arctic. Besides, these fairs have resulted in good contact with international exploration companies and other contact persons in the industry. Attendance at the fairs usually has the direct effect that a number of companies file applications for exploration licences. page 25

26 3.1. Status and evaluation of international marketing The concentration of the efforts to two fairs in North America left the Bureau of Minerals and Petroleum with extra resources to approach other international markets for exploration, and the Bureau of Minerals and Petroleum has also been represented at various conferences and symposia, e.g. in May 2001, when the Bureau of Minerals and Petroleum hosted the ISMA (International Symposium on Mining in the Arctic). At most conferences, Greenland has made a contribution in the form of a paper or a poster exhibition as part of the efforts to make Greenland visible as a target for exploration. Information material. The production and dissemination of data and information are key to the dissemination of knowledge of Greenland s mineral potential to the outside world. Thanks to the systematic collection of data over many years, GEUS has today a number of databases with geological information. These data are published in various formats such as analogous maps, digital summaries of projects and in GEUS reports. Further, for the purpose of marketing, informative products which are easily accessible to the industry have been produced during the years. The newsletter Minex is published about three times a year, typically in connection with the participation in international fairs. Minex covers news of current interest such as new data publications and the status of exploration projects in Greenland. About two years ago, as part of the digital development, GEUS created a Minex site on from which the newsletter can be downloaded. Experience shows that Minex functions well by providing quick access to data information and exploration activities in Greenland and that the newsletter is being used by a broad group of people in the world of geology. A new marketing-friendly product has recently been launched: Greenland s Mineral Resources. This is a new concept where the products have a three-tier detail level. The three different products consist of (a) Power Point presentations (Topics on Greenland Mineral Resources), (b) Fact Sheets (Exploration and Mining in Greenland) and (c) a general scientific publication on ores in Greenland (Geology and Ore). The three products are made independently of each other and with different topics. The material is launched under the heading Greenland Mineral Resources. As part of digital development, both the Bureau of Minerals and Petroleum and GEUS have home pages in English which are used for marketing purposes and to serve exploration companies among others. The home page of the Bureau of Minerals and Petroleum places emphasis on information concerning licence conditions and legislation while the GEUS home page quite naturally focuses on geological information. The home pages are maintained and updated independently of each other, which means that there is no joint coordination of the development of these two home pages. The extensive service provided both by GEUS and the Bureau of Minerals and Petroleum to visiting companies and other interested people is another means of disseminating knowledge and data about Greenland. At these visits the companies receive personal service, in this way getting both quick access to data and information and the exchange of personal experiences with relevant scientists. This service has received great recognition from the visiting companies. page 26

27 Mineral Strategy Status and evaluation of information in Greenland Publications. To achieve the greatest possible effect and spread of information, great importance has been attached during the years to translating popular geological publications and information material into Greenlandic. Of these translations the popular science series Geology News from GEUS, of which four issues have currently been translated into Greenlandic, can be mentioned. Additionally, the annual report of the Bureau of Minerals and Petroleum is published in Greenlandic, English and Danish, and over time publications on mining operations in Greenland have been translated, too, most recently Mining Operations and the Environment in Greenland from 2001 and The White Gold and the Genuine Gold from Meetings and similar events. The Bureau of Minerals and Petroleum s participation in the Culture Night events in Nuuk was a great success. These events took place in cooperation with Nuna Minerals A/S, Nuna Oil A/S and Greenland Resources A/S and included papers, competitions, posters and tests of mineral properties. Experience shows that the Nuuk population is greatly interested in this type of event where they get the opportunity to ask questions and acquire practical knowledge of geology and minerals. For some years now, the Bureau of Minerals and Petroleum has also attended the annual stone fairs organised by the Greenland Stone Club ( Grønlands Stenklub ). At these events, the Bureau of Minerals and Petroleum has considered it important to bring publications, stone samples and things needed to identify minerals. This activity works fine in relation to the other mineral sellers and the Bureau of Minerals and Petroleum s stand has been well visited. Other events worth mentioning are the mineral hunt Ujarassiorit and the Prospector Courses. Ujarassiorit was started in 1989 and the Prospector courses in Even though these two programmes do not belong under direct information, they have for many years greatly helped to create positive interest in Greenland s world of minerals and to involve the population directly in mineral exploration. As to exploration, information meetings have been held in local authority areas with intensive exploration activities, e.g. an information meeting in Qaanaaq in connection with a GEUS project and Aeromag flights and information meetings concerning exploration for gold, niobium-tantalum, diamonds as well as olivine in selected local authority areas in West Greenland. page 27