New strong force behind London Mining Greenland

New strong force behind London Mining Greenland A/S

A new strong force is now behind London Mining Greenland A/S and the company’s plans for a mine at Isukasia in Western Greenland.

At a meeting held on 21th of December 2014, the Government of Greenland approved the indirect transfer of the Greenlandic company London Mining Greenland A/S. London Mining Greenland A/S is the licensee under a licence to exploit iron ore at Isukasia in Western Greenland and its parent company is London Mining Greenland (1) (Jersey) Limited whose shares have now been transferred to the company General Nice Development Limited.

The new company behind London Mining Greenland A/S, General Nice Development Limited, is Hong Kong-based with the main operational centre in Tianjin City in mainland China. Itd was incorporated in Hong Kong in 1992. General Nice Development is the parent company of a conglomerate and has three primary business areas: operation and development of mineral deposits and exploitation of minerals, commodities trading and one-stop trading services and commercial development of property. The company has more than 100 subsidiaries across over 80 countries and regions in China, Singapore, Indonesia, India, Thailand, Tajikistan, South Africa, the United States, Australia and Russia. The net asset value of the company is over USD 10 billion. The annual revenue exceeded USD 18 billion in the past 5 consecutive years. Globally, the company (General Nice Group) has around 12,000 employees.   

The company’s strategy is to be one of the leading suppliers of steel-making materials through mergers and acquisitions and organic growth. The management team has strong expertise in the fields of mining, trading and financing. The Chairman Cai Suixin has commented that the company will invest in those mining districts and projects with great potential. The company will continue to work on the Isua project, meanwhile explore other opportunities in Northern Region.

Of particular interest in the context of the transfer of the shares is General Nice Development Limited’s ownership of the following companies: IRC Limited, a company developing iron ore projects in Russia, Pluton Resources who operates an iron mine in Western Australia and Palabora Mining Company who operates a copper mine producing iron ore in South Africa.

It is the assessment of the Government of Greenland that the company will be able to raise the necessary financing, including equity financing, funding and additional debt financing for the development of the exploitation licence at Isukasia in Western Greenland.

An indirect transfer of the licence means that the structure around London Mining Greenland A/S is the same, but the ownership behind the company is now General Nice Development Limited. The previous owner, London Mining Plc. who suspended its payments in 2014, is no longer an owner of London Mining Greenland A/S.

The financial problems of London Mining Plc. leading to the indirect transfer of the exploitation licence have not directly affected the subsidiary company London Mining Greenland A/S. 

It was announced in connection with the transfer of the licence that London Mining Greenland A/S will keep its name and headquarters in Nuuk and that the current staff of the company will stay on.

London Mining Greenland A/S has plans of an open pit mine at Isukasia in Western Greenland with a construction period of 3½ years and, for the time being, an estimated operation period of 15 years. Apart from the mine itself, the project is expected to include a road approximately 105 km long, a harbour, a residential area, a workshop, fuel and explosives depots and related infrastructure, including possibly an airstrip.

The work related to the project can now continue. However, before construction and operation of a mine can begin, a number of licensing issues need to be addressed. The details of the exploitation and closure plans as well as the technical approvals are currently being finalized and London Mining Greenland A/S, the Government of Greenland and the two municipalities Qeqqata Kommunia and Kommuneqarfik Sermersooq are negotiating an Impact Benefit Agreement. These procedures are all expected to be finalized soon.

For further information please contact:

 

Minister for Finance and Mineral Resources, Andreas Uldum: Phone: +299 345212

Acting Deputy Minister for Ministry of Mineral Resources,

Jørgen T. Hammeken-Holm: Phone: +299 346846