News: Greenland soars on landmark China NFC MoU , page-21

re: News: Greenland soars on landmark China N... "With an avenue to establishing a strong rare earth business unit taking shape, GMEL will increase its focus on structuring the uranium business, and firming up an optimal uranium partner for the Kvanefjeld Project".

IMO this last statement from the GGG announcement re- the M.O.U with China's NFC, is the 'stumbling block' for the viability of the project - it all hinges on Greenland and Denmark getting their act together on the Uranium issue.

News Articles like the one below, indicate what needs to be done to improve relations with Mining Companies and the Investment Community if Greenland is to have a viable Mining Industry. I hope common sense prevails and we finally see some solidarity from the Powers that be.



"THE THRILL IS WRONG"

Greenland still ranks highly among mining firms, but an increasing number say uncertainty surrounding the country’s mining policies is a deterrent to investment

March 25, 2014 - 7:31am - By Mads Nyvold, Sermitsiaq

There has been much drama surrounding Greenland’s mining policy since March 12 of last year, when Aleqa Hammond restored Siumut to power after a single-term break in the party’s 30-year lock on power in the self-governing member of the Danish kingdom.

A divisive debate over uranium mining led to one party fleeing her coalition government. Both Hammond and her minerals minister have given mistaken information about the country’s largest ever mining deal. Changes to mining regulations were rushed through the approval process. And then there was the secrecy surrounding the implementation of new mining fees.

For mining firms, the drama is proving a little too thrilling for their liking.

Since Hammond came to office, the level of investment in Greenlandic mining has fallen, according to figures gathered by Fraser Institute, a Canadian think tank that produces an annual survey of the global mining industry.

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This year’s survey is based on the answers of 690 companies in 112 jurisdictions submitted between September and December. The companies were asked about policy factors that affected investment decisions.

Their answers were used to formulate a ‘policy perception index’, a measure of the mining policy framework in a given country, exclusive of financial concerns or mineral potential.

Among the considerations are things like administration of current regulations, environmental regulations, the legal system and taxation regime, uncertainty concerning protected areas and disputed land claims, infrastructure, socioeconomic and community development conditions, trade barriers, political stability, labour regulations, the quality of the geological database, security and labour availability.

Greenland received a score of 75.3 points, out of a possible total of 100. In the previous study, the country received a rating of 78.2. With the decline, Greenland slides to 23rd place among the best regions in which to do business, down nine places from last year.

SEE RELATED: ‘Malmbjerg disease’ stalks Greenlandic mining

This year’s highest rankers were Sweden, Finland and Alberta, Canada. The worst, according to mining companies’ answers, were the Philippines, Venezuela and Kyrgyzstan.

Even with the decline, Greenland remains well inside the top 25 percent. Still, with the tough economy making it hard to attract mining investments, Greenland may not be able to land the funding necessary to kickstart its mining industry.

Part of the reason is a 25 percent decline in mining industry investments worldwide last year. Global demand for minerals has fallen as a result of the global economic slowdown. Prior to the slump, countries’ biggest worry was whether they were getting the biggest investment possible. Nowadays, they have to fight to get any investments at all.

Worldwide, the 690 firms taking part in the survey spent $6.2 billion on exploration spending in 2011. In 2012, that amount fell to $5.4 billion.

SEE RELATED: NGOs applaud go-slow Greenland minerals recommendation

Greenland’s government is counting on some of that money being spent in the country in the years to come as part of its drive for economic, and at some point political, independence.

Some in the current cabinet expect to be independent of Denmark within a generation. The most optimistic say it will happen “within the next few years”, while sceptics call for a go-slow strategy, and warn against relying solely on mining as the foundation the economy.

The Fraser survey indicates that those hoping that mining will provide the funding necessary may need to rethink their assumptions. After the current government came to power it implemented a royalty payment policy and changed mining laws. Now companies that once considered operating in Greenland say they are less likely to do so.

During the election campaign, Jens-Erik Kirkegaard, the current minerals minister, pledged that Greenland wouldn’t give away the country’s mineral resources without ensuring that the country profited from them.

SEE RELATED: What’s in it for us?

Now, though, his focus has changed. Instead, he says he do what he can to woo mining firms to set up in Greenland and not in other countries.

“Anything that can help secure the necessary capital required to build mines is welcome,” he wrote in an op-ed in February.

In the past, he has cited Greenland’s Fraser Institute ranking as an argument in favour of the country’s ability to attract investors. Kirkegaard, though, declined to a request to assess what effect the lower raking would have on the mining industry. Instead, in a written statement he pointed out that Greenland “still ranked highly” in the Fraser survey".