kvanefjeld project moved up agenda?

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Kvanefjeldsprojektet move up the political agenda

Saturday, March 13, 2010 17:47

BY: HAGEN HJER CHRISTENSEN


Must - Must not .... Both autonomous and shareholders in the Australian mining company, Greenland Minerals and Energy will in the future to count on the buttons in the large-scale Kvanefjeldsprojekt in Narsaq.



From the press conference yesterday in Nuuk. From left are Roderick McIllree and Mike Hutchinson. Both from the Australian company. To the right is Folketing Lars Emil Johansen (S), who is chairman of the Greenland subsidiary.

For politicians it is about to decide whether you want to leave the so-called zero-tolerance principle in relation to uranium. For shareholders, it is about continuing to bet money on the project.

These initial investments in the order of 300 million dollars to ensure the basis for decision on whether there is a basis for establishing a mine in Kvanefjeld.

There is so far invested around 200 million dollars in a wide range of studies. But now we invest additional 300 million dollars to be used to determine whether it is worthwhile to open a mine near Narsaq.

The Australian company stressed yesterday at a press conference in Nuuk, it is not possible to isolate the rare earth metals from uranium. And therefore it is crucial to the company if the politicians in this country is willing to abolish zero-tolerance to uranium.

There is, according to company estimates an incidence of rare earths at 4.9 million tonnes, just as there are an estimated incidence of uranium oxide at 0.12 million tonnes. It will give my overall production time of about 23 years. But, however, shows three other areas under the license that is probably more rare earths, which could hold a mining started in 100 years.

In a preliminary summary of preliminary investigations it is estimated that the establishment of a mine opening in 2013, and it will give employment to about 2,000 people in a few years. Then the mine during the operational phase provide 600 jobs for people from South Greenland. An emphasis in this context that organized daily transportation between the mine and cities. In addition, the mine is expected to provide about 800 secondary jobs with subcontractors.

Finally, preliminary calculations show that corporate taxes to society amounts to approx. 700 million dollars annually. In addition, income taxes and royalties.

But the golden prospects are therefore - according to yesterday's press conference - linked to the PA - Naalakkersuisut and Inatsisartut - abolish zero-tolerance of uranium. The issue is expected on the agenda at the autumn session. Until now, rural politicians have been very reluctant in relation to the project.