Mining-friendly Party Doubles Support in Greenland Vote Mining...

Mining-friendly Party Doubles Support in Greenland Vote

Mining opportunities in the isolated country could become more widespread with a mining-friendly party holding more power in parliament.

The development of the mining industry is seen as key in the quest for eventual independence.
Foreign investors watched the election closely for signs there could be a revitalisation in political will to get mining back on track after a fall in commodities prices and red tape following increased autonomy in 2009 dulled prospects.
Various foreign companies have been itching for the opportunity to begin operations in Greenland, including Ironbark Zinc (ASX:IBG), which has three projects in Greenland including the Citronen zinc project.
In Ironbark’s most recently published feasibility study for the project, Citronen is projected to produce 200,000 tonnes of zinc per year, on a 14-year mine life.
Ironbark reported in March this year that initial site and mine preparation works were soon to commence at the Citronen site, on the frozen northern coast of Greenland.Essential equipment and fuel are planned to be transported to the site by ship.
Managing director of Ironbark Jonathan Downes said in the March press release that the company is preparing for “large scale operations.”
“Ironbark intends to take in mining equipment to commence breaking ground this year and other site works. This will ensure that when financing of the project is completed,we can hit the ground running towards first zinc production without the delays of waiting for these long lead time items.”
The company is confident that it is well placed to meet a growing global demand for zinc, and is working on project financing with China Nonferrous Metal (NFC) to incorporate Chinese equipment and construction costs into the companies feasibility study.
Ironbark has a shareholder base which includes Glencore (LSE:GLEN) and Nyrstar (EBR:NYR), the second-largest zinc producer in the world.
Currently Greenland hosts only one operational mine, a ruby mine in southwest Greenland operated by Greenland LNS. Meanwhile, Canada’s Hudson Resources (TSXV:HUD) has commenced construction on an anorthosite mine due to begin production in late 2018.
Additionally, Australian company Greenland Minerals and Energy (ASX:GGG) is currently developing the Iimaussaq Complex in southern greenland, where the company is investigating resources of rare earthelements, uranium, and zinc.

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