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49 WorldWide Drilling Resource ® JUNE 2014 Greenland Enters the Iron Mining Arena Adapted from Information by London Mining and the Government of Greenland UK-based London Mining has been awarded an exclusive 30-year exploita- tion license for its 100%-owned Isua Project in Greenland. The license is a sig- nificant step in the process of seeking partners for the development of the Isua project. The Isua project is located roughly 100 miles northeast of the country’s cap- ital city of Nuuk. First discovered in the 1960s, the project’s iron ore could pro- duce premium iron with low impurities. An exploration drilling and feasibility oper- ation was undertaken in the 1970s which indicated the potential for open pit and underground mines in the area, as well as the development of a bulk logistics route to a deep water port for shipment. London Mining acquired the project in 2005, and has been conducting mul- tiple studies and assessments to com- mence with the project which will consist of a mine, processing plant, and a pipeline connecting the plant to a deepwater port capable of loading the iron onto ships year-round. Graeme Hossie, chief executive offi- cer of London Mining said, “We are very pleased...to receive the exploitation license for the Isua iron ore project after many years of exploration and development work. Isua is an important project for Greenland, and its development will help deliver key objectives for [Greenland’s] economic growth... The Isua project rep- resents the potential of a significant... supply of very high-quality iron ore con- centrate to the global steel industry.” The agreement is historic in more than one respect, it also includes a roy- alty model, which has been important for the Government of Greenland. In addi- tion to providing a boost to Greenland’s economy, the project is expected to pro- vide employment for up to 3000 people during construction, and nearly 750 peo- ple in the operation phase. “I'm really proud that the government has been successful in carrying through the largest commercial project to date in Greenland. It will undoubtedly affect em- ployment and state revenue in a very positive direction,” stated Greenland’s Minister for Industry & Minerals Jens- Erik Kirkegaard. According to the Minister, this agree- ment has been a long process. For the past ten years, Greenland has been in- creasing its efforts to become a mining nation. This agreement is the first major step in the right direction. "I would like to commend all those who, along the way, have contributed to seeing this exciting process through. Both the employees and London Mining, who all the way constructively...con- tributed to the creation of the agree- ment,” Kirkegaard said. The next phase is to finish negotiat- ing the IBA (Impact Benefit Agreement). The IBA will establish a series of goals for the participation of companies for Greenlandic labor covering: gender equal- ity, apprenticeships, training, and upgrad- ing skills, in addition to staff development. “An IBA agreement is a very impor- tant agreement because it helps to ensure that the project in a positive way is Map courtesy of London Mining. rooted in our society and especially in the community," concluded Kirkegaard. ONTARIO Dealmakers Dave Vinson of Vinson Well Drilling, Coldwater, Ontario, Canada, with Jon Errickson of Errickson Equipment, Stockton, New Jersey. Dave recently purchased an (S)CR-12 case for his Schramm rig. Errickson Equipment Send your deals to: promotions@ worldwidedrillingresource.com Photo of the momentous license signing courtesy of naalakkersuisut.gl