14 C
Belgrade
Supported byspot_img
spot_img

Greenland has stripped a Chinese mining company of its licence to an iron ore deposit

Member of Europium Groupspot_img
Supported byspot_img

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.

Supported by

The licence was withdrawn because of inactivity at the site, the government said in a statement, adding it will be offered to new interested companies once it has formally been handed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

Supported byElevatePR Digital

Related News

Revolutionizing mining practices: “Zijin’s sustainable initiatives in Serbia

Over the past five years, "Zijin" has tackled air pollution in Bor and implemented a wastewater recycling system, ensuring no discharge into waterways, according...

Mali signs lithium mining agreement with Ganfeng, eyes revenue boost

Earlier this week, Mali's economy minister announced a significant deal with China's Ganfeng Lithium regarding the operation of the Goulamina lithium mine. Under the...

Meeting the EU’s molybdenum demand: Exploring Greenland Resources’ Malmbjerg project

Molybdenum stands as a pivotal metal in modern industry, particularly in steel and chemical manufacturing, integral to the emerging landscape of green energy technologies...

Eclipse Metals advances critical minerals projects in Greenland, explores uranium listing on ASX

Eclipse Metals Ltd seems to be actively advancing its critical minerals prospects in Greenland, primarily focusing on the Ivigtût and Grønnedal projects. The company's...
Supported by
Supported by
Supported by
error: Content is protected !!