A New Agreement Promises Benefits for South Greenland from Mining Activities
Photo: Naalakkersuisut
In a significant step towards social sustainability, Naalakkersuisut, the Municipality of Kujalleq, and Nalunaq A/S have formalized an agreement that will significantly shape the mining landscape in South Greenland. Effective from January 1, 2026, this ‘Impact Benefit Agreement’ aims to ensure that the local community and the nation reap tangible benefits from the gold mining project.
“I am happy and proud that we have signed an agreement that all parties can support,” expressed Mayor Malene Vahl Rasmussen (D). “We are dedicated to fostering the development of the mining industry in South Greenland and look forward to strengthening our already close cooperation.”
The agreement delineates several obligations designed to bolster local interests, including:
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Local Workforce Participation: By 2026, a minimum of 40% of the workforce at the mine must comprise Greenlandic citizens. This figure will rise to 45% in 2027 and reach 50% by 2028, with non-compliance resulting in a penalty of DKK 100,000 for each percentage point below target, payable to the Råstoffonden.
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Investment in Skills Development: Nalunaq commits to spending no less than DKK 250,000 annually on training programs, internships, and further education for local workers. Should the company fall short, the difference will also be directed to the Råstoffonden.
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Engagement of Greenlandic Suppliers: At least 10% of the operating budget is mandated to support local businesses, with similar penalties for non-compliance applied to the Råstoffonden.
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Local Gold Sales: Every three months, 500 grams of gold will be made available for sale to individuals with a Greenlandic address.
“We are grateful for the support we have received from local stakeholders in fostering positive development in Greenland,” remarked Eldur Olafsson, the CEO of Nalunaq A/S. “We remain committed to unlocking Greenland’s resource potential while continuing our productive collaboration with regulatory authorities.”
This agreement marks a pivotal moment for both Nalunaq and the local community, establishing a framework for mutual benefit that prioritizes social responsibility alongside economic growth.