My latest piece for the China Policy Institute Analysis blog discusses General Nice’s surprising attempt to buy a closed naval base, reportedly blocked by the highest level of Danish government, as well as the main mining projects with Chinese involvement. There’s also a comparison of Danish and Greenlandic attitudes towards Chinese investment.
ASX-listed Ironbark have just applied for an exploitation permit for the Citronen Fjord zinc and lead project in Greenland’s far north, where they have been exploring for several years now. A series of public consultation meetings on the project will take place until next January. China Nonferrous (中色) is expected to become a partner in the financing and construction of the project.
The project is expected to employ a couple hundred people during its construction and exploitation phases. Ironbark documents submitted to the Greenlandic gov’t (and available online) explain that around 80% of these will be foreigners at first, but that they will be later “progressively replaced” with local staff. The mine’s remote location means that foreign staff will be flown in from abroad, meaning it will hardly be seen in Greenlandic towns. Although the main local trade union have aired some worries about immigrant workers and their employment conditions, the scale and location of the project likely mean it won’t create the sort of controversy that once surrounded the Isua iron project.
State-owned integrated miner China Nonferrous, through their main listed arm NFC (中色股份), signed non-binding agreements with Ironbark in 2013 and 2014 that envisage the Chinese SOE’s involvement in financing and building the mine and eventually owning a stake in it.
Nonfezza, also through NFC, are also involved in the Kvanefjeld rare-earth mine in the south of the island, a project that has already started trial production. They’ve also signed a preliminary agreement to build an aluminium smelter in Iceland.
Here’s an overview of Chinese involvement in Greenland mining.
John Mair from Greenland Minerals and Energy has told Chinese news site DZH News (大智慧) that a feasibility study for the Kvanefjeld rare earth project is almost done, and that trial production might start once an environmental study is ready later this year.
China Nonferrous (CNMC, 中色), a national state-owned integrated miner, is involved in GMEL’s Kvanefjeld project through its largest listed subsidiary, Shenzhen-listed NFC (中色股份). This involvement officially began with a non-binding MoU between NFC and GMEL signed one year ago (‘China Nonferrous enters Greenland rare-earth game‘). That cooperation seems to be progressing towards more concrete form as, according to a recent GMEL announcement, multiple meetings between the two companies have been taking place during the past year, both at management and technical levels.
However ‘non-binding’ it might be at the moment, cooperation between China Nonferrous and the Kvanefjeld operator is an MoU made in Heaven. The Kvanefjeld mine is expected to produce output fitting the needs of China Nonferrous’ colossal REE separation plant under construction in Xinfeng 新丰 county in Guangdong, and rather cheaply at that.
GMEL has also announced they’ve secured up to $20m from Long State (远邦投资), a HK-based resource investment company with Mainland connections I might (or might not) have occasion to talk about in some future post. They also say they’re looking forward to getting more financing during this year.
Other than in Kvanefjeld, Nonfezza are also involved in Ironbark’s zinc project in Citronenfjord at the other end of Greenland.
Greenland Minerals and Energy (GMEL) has just signed a non-binding MoU with a unit of China Nonferrous (中色) for its Kvanefjeld uranium-rare earth project in southern Greenland. The project is still at the feasibility study stage.