China wants Greenland station ‘ASAP’; one candidate site near planned China Nonferrous investment

China wants to establish a permanent ground research station in Greenland ‘as soon as possible’, Yu Yong 俞勇, a researcher at the beautifully named PRIC (Polar Research Institute of China, 中国极地研究中心), said at the yearly Reykjavik ‘assembly’ of the Arctic Circle, an organisation chaired by former Icelandic president Ólafur Ragnar Grímsson. This was first reported by Danish journalist Martin Breum for Sermitsiaq and on his Twitter account. Breum has long been covering Greenland, where he lived as a teenager, and has written a must-read book whose English version is free to download.

Breum tweeted a picture showing two candidate locations for the base:

 

breum

Via Martin Breum’s twitter.

The map shows two possible locations. One is in the southwest, near Kangaamiut or Maniitsoq. (Readers with better visual acuity and knowledge of Greenlandic geography may come to a more precise conclusion.) The northern one is of particular interest, and will be discussed below. The third red mark in the northeast, labelled 丹麦站 Dānmài zhàn ‘Danish station’ is indeed a Danish station, the military and scientific outpost Station Nord.

The Chinese delegation at the Reykjavik event includes several officials: State Oceanic Administration deputy director Lin Shanqing 林山青, MFA special Arctic representative Gao Feng 高风, and of course PRIC head Yang Huigen 杨惠根 (who sits at the board of the entity behind the event). Skimming through the programme, I see three sessions organised by Chinese entities (the PRIC (whose session is plenary), Beijing Normal University (北师大) and the China-Nordic Arctic Research Centre (CNARC, 中国—北欧北极研究中心)). In terms of quantity, that makes the Chinese presence comparatively strong among non-Arctic states, larger than e.g. South Korea’s. However, the Chinese delegation is unremarkable in terms of seniority next to, e.g., the UAE and, of course, some of the Arctic states.

It is remarkable that the event was chosen for the first official discussion of the Greenland station plans. On the other hand, it was left to a relatively junior figure, Yu Yong, a marine microbiologist with an ‘associate research fellow’ (副研究员) position. (Breum’s article misidentifies him as ‘vicedirector of PRIC’; the confusion might have been due to Yu’s status as ‘deputy head’ of a division within the PRIC.) Chinese plans for a base in Greenland had been under discussion for some time, in particular during a SOA visit to Greenland last year. What the announcement shows, besides the public disclosure of the potential locations, is that China can already count on the agreement of the Greenland government. As Breum notes, scientific research falls under the devolved purview of the Greenland government, and Copenhagen’s approval isn’t necessary in principle.

As quoted by Breum, Yu said China wants to build the station “as soon as possible”, while adding there’s no clear schedule yet.

The more impressive of the two proposed locations would of course be the northernmost one. The area will be familiar to regular readers: it’s near the Citronen Fjord zinc project, where minor miner Ironbark from Australia holds a mining permit. An arm of state-owned China Nonferrous (中色) has long had a series of non-binding agreements with Ironbark, showing an interest in financing and building the project. Zinc prices have been rising, which is good news for Ironbark, but the site’s remote location and lack of infrastructure make costs unusually high (indeed prohibitive, according to some). Ironbark shares don’t show signs of generalised enthusiasm for the mine.

There is, however, one entity that remains interested in the project: China Nonferrous, specifically its listed arm NFC (中色股份). One of its deputy general managers (副总经理), Qin Junman 秦军满, visited the Citronen site last August, accompanied by the crème of Greenland’s resources ministry: the minister (naalakkersuisoq) Múte Bourup Egede and the top career official, deputy minister (departmentschef) Jørgen Hammeken-Holm. The display of support is understandable: Citronen Fjord is one of two important, viable projects for Greenland’s economic development; the other one, the Kvanefjeld (Kuannersuit in Greenlandic) uranium and rare-earth project, also with Chinese involvement, is controversial, and indeed less to the minister’s liking. Ironbark is now working with NFC towards obtaining financing from Chinese banks.

If the project goes ahead, the Citronen mine would be, by a long stretch, the world’s northernmost (at 83°N), and indeed the northernmost settlement of any kind on dry land. During the initial phases of the project, most workers will be foreign, indeed most likely Chinese, so that nationality, and the state behind the entity doing the building, would hold the record. A competitor for that record could be the planned Chinese research station, assuming the northern site is finally chosen. It’s hard not to see the connection between these two planned locations; as is well known, neither Chinese scientific projects of this kind nor those of state-owned companies are disjoint from broader state policies. An obvious example is the Kvanefjeld uranium+REE project, where the Chinese investor is under the PRC Ministry of Land and Resources, and “implements a vision” reached at a meeting between the minister and Greenlandic officials.

(For those wondering: Citronen (‘the lemon’) Fjord isn’t so named because any citrics grow there. It honours Jørgen Haagen Schmith, who used the pseudonym as a resistance fighter during the Nazi occupation of Denmark. Walter Turnowsky has written about this for Sermitsiaq. I try to provide Greenlandic names for any Greenland locations I mention on this blog, but I’ve looked and asked around and apparently Citronen Fjord doesn’t have another name, possibly due to its remote location even by Greenlandic standards.)

As Yu’s map helpfully shows, the northern candidate site is located northwest of Station Nord, a rather strategic point. It’s only to be expected that the Danes are paying close attention at Chinese plans for the area. Indeed, some minor friction already occurred late last year, when Ironbark was applying for the exploitation licence; the Danish foreign ministry wrote to Greenland enquiring about the project, something the local authorities didn’t appreciate. The fact that no such enquiries had been sent concerning other mining projects without Chinese involvement makes the People’s Republic the elephant in the room.

Even though it hasn’t generated the mining boom that, as some might have imagined at some point, would suddenly make Greenland economically independent of Denmark, Chinese interests in the island are slowly increasing. Besides the mines and research stations, another interesting development is the last few month has been the start of the construction of a satellite ground station in cooperation between Beijing Normal University (北师大), Tele-Post and the Greenland Institute of Natural Resources (Pinngortitaleriffik/Grønlands Naturinstitut), announced last May.

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update on mining in Greenland

Chinese interest in mining in Greenland hasn’t received a lot of media attention this year, after General Nice (俊安) bought the Isua iron mine, which probably no one would think of developing at the moment (‘cucurbitae caput non habemus‘). That doesn’t mean Greenlandic officials have stopped promoting the island’s ores to Chinese potential investors (there have been meetings in October), or that Chinese interest no longer exists; quite the contrary. As two projects China Nonferrous is expected to help finance and build approach the production stage, Chinese investment in Greenland could become a reality pretty soon.

My latest piece for the China Policy Institute blog discusses these developments.

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.

Chinese mining in Greenland one step closer: Ironbark applies for mining license for Citronen Zn project

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.

new post: Shock and ore

If you’re looking for an overview of Chinese mining activities in Greenland thorough enough to talk your fellow dinner-party guests into submission, then I know where you can procure one. The University of Nottingham’s China Policy Institute Blog has just posted such an overview, titled “Shock and ore“, in which I go over the mining ventures with some degree of Chinese participation, with an emphasis on General Nice, the new owner of the Isua mine.

Chinese mining in Greenland this year? China Nonferrous, GME to start Kvanefjeld trial production in 2015

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.

China Nonferrous deepens involvement in Greenland Zn project

China Nonferrous (中色) listed arm NFC has signed a new non-binding MoU with Ironbark for its Citronen zinc project in northern Greenland. A previous agreement already mentioned NFC would facilitate Chinese funding for a large part of the development costs, to which the new MoU adds an option for the Chinese company to eventually buy a minority share in the project.