Greenland minister optimistic on financing for Citronen Fjord Pb+Zn mine

Vittus Qujaukitsoq, a Greenlandic minister (naalakkersuisoq) whose portfolio now includes natural resources, has expressed optimism that Ironbark’s zinc and lead project in Citronen Fjord is likely to succeed in attracting financing and start production as planned. The mine is located in the island’s far North (KNR). The statement came during a public meeting on the project in Nuuk, a step in the approval process for an exploitation license. Meetings planned in other Greenlandic towns have been suspended due to bad weather.

At least part of the financing for the Citronen mine is likely to come from China. Ironbark has signed (non-binding) agreements with China Nonferrous (中色) according to which the Chinese SOE could help finance and build the mine, as well as eventually own a stake in it. China Nonferrous is also expected to be involved in the Kvanefjeld U+REE mine in the south of the island. Another Arctic project of them is a plan to build Iceland’s fourth aluminium smelter in Hafursstaðir.

Although Chinese SOEs have been involved in exploration in Greenland since 2009 (and their interest in the island’s ores goes back to four years earlier), China Nonferrous seems likely to be the first Chinese company to actually take part in the extraction of Greenlandic minerals.

If it goes ahead, the project will require a couple hundred (mostly foreign) workers.

Citronen Fjord is above 80°N, probably the world’s northernmost mine. The second northernmost mine with Chinese involvement could well be in Russia: as I mentioned in my latest post on Yakutia, Heilongjiang province companies are considering investing in the Tirekhtyakh Тирехтях lead deposit, at around 69°N.

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