Naalakkersuisoq Naaja Nathanielsen and Greenland Resources A/S have signed a permit to mine molybdenum and magnesium at Mestersvig in Northeast Greenland.
The mineral company Greenland Resources A/S has today, Thursday, signed a permit with Naalakkersuisoq for Industry, Minerals, Energy, the Justice Sector and Equality, Naaja Nathanielsen, to mine molybdenum and magnesium north of Ittoqqortoormiit near Mestersvig.
The mineral resources company Greenlad Resources A/S has been granted permission to expand molybdenum and magnesium.
The company will not yet announce when extraction will begin, but if it does begin, it is expected to last up to 20 years.
During that period, the company expects annual revenue of $700 million.
KNR asked the chairman of the board of Greenland Resources A/S, Ruben Shiffman, how the project will benefit Greenland’s economy:
– The revenue from the company’s tax payments will give Greenland around 1 billion dollars over the 20 years, he says.
Today, this corresponds to approximately 6.5 billion Danish kroner.
Now investors must be found
The next step is to find investors to finance the start-up of the project. Once the financing is in place, the Canadian mining company – which employs indigenous people – will send employees to Greenland to train those who will work on the project.
The agreement is also received positively by naalakkersuisoq for raw materials:
– We will benefit from it in several ways. The company will also create jobs, and they will act locally in Ittoqqortoormiit. In addition, tasks will be given to local and private companies in the municipality, says Naaja Nathanielsen.