October 26, Greenland Parliament voted to end radioactive minerals mining ban that has been performed 25 years, this could detonate foreign investment enthusiasm on local abundant uranium, thorium, rare earths etc. mineral resources. In addition, London Mining Plc teamed up with Chinese companies has also achieved a major breakthrough of Iron ore mining on Greenland.
Insiders pointed out that further opening of Greenland mining market, the future will attract more Chinese and Australian investors to invest.
Largest iron ore project progress difficult
London Mining Plc confirmed obtain a 30-year exclusive mining iron ore contracts In the Greenland capital, Nuuk, 150 km north of the ice sheet, and to pay up to 5% of sales of royalties. This is called “Isua” of iron ore mining project is expected to be mined 15 million tons of open-pit iron, required an investment of $ 2.3 billion, which is the largest investment project in local history, total investments exceed Greenland’s $ 2 billion of annual GDP.
Minister of Industry and Mining in Greenland Gierke Gao said, approved iron ore mining project was the Greenland moment in history, it is the biggest local commercial projects and will have an extremely positive impact on employment and income.
London Mining Plc is a UK listed company, Shareholders mainly composed by small companies of Australia and Canada, main business is focused on mineral exploration, development and operation, many new projects require capitalized supporters to cooperate. London Mining Plc as early as in 2010 was planned to cooperate with China, to reduce costs, the initial three-year of construction project needed 3,000 workers will come from China. Greenland capital Nuuk Parliament last December also exclusively pass a special legal work terms, which allow companies to pay the wage of foreign workers is not necessarily limited to local minimum wage. Local opposition parties and Copenhagen unions criticize that this is not only Greenland’s natural resources are being plundered by China companies, but also open the door to greet cheap Chinese labor. After the passage of this bill has aroused great repercussion, In March, Prime Minister of the Government of Greenland was forced to resign, the progress of the project was also stalled.
Greenland is one of the least populated places on earth, only 56,000 inhabitants, although to achieve autonomy in 2009, but so far the government about 60% of revenue still offered by Danish. Poor infrastructure in Greenland, fishing is the local absolute export pillar industries. The Government has been hoping for greater autonomy and eventual independence, trying to walk a road of development and utilization of natural resources, through the development of mineral and petroleum industry to reduce dependence on Denmark.