Signing ceremony with Hudson Greenland

Signing of the Exploitation Licence and Impact Benefit Agreement for the Qaqortorsuaq/White Mountain (Naajat) Anorthosite project

The Government of Greenland, Qeqqata Kommunia and Hudson Greenland A/S are pleased to announce the signing of an exclusive Exploitation Licence and Impact Benefit Agreement (IBA) for the Qaqortorsuaq/White Mountain (Naajat) Anorthosite project on 24 September 2015.

The Exploitation Licence gives Hudson Greenland A/S an exclusive licence to exploit anorthosite in the Naajat area, situated in Qaqortorsuaq between Sisimiut and Kangerlussuaq. The licence area covers 96 square kilometres. The proposed pit area will measure up to 11.5 hectares – equivalent to about 16 football fields.

Naalakkersuisoq for Mineral Resources, Andreas Uldum, said:

"The Exploitation Licence is great news for Greenland. It means new sources of public income for the Greenlandic population".

The IBA is one of the cornerstones and a strong tool in the long term work towards qualifying local Greenlandic labour to work in the mines and thereby putting a local footprint on the new upcoming mine projects in Greenland. The signing sends another strong signal to the mineral industry; mining in Greenland is here to stay and it is done in a sustainable way.

Naalakkersuisoq for Industry, Labour, Trade and Foreign Affairs Vittus Qujaukitsoq said:

"In continuation of the already signed IBA for the ruby/sapphire project in Qeqertarsuatsiaat I am - on behalf of Naalakkersuisut - excited that we today can sign yet another IBA – this time for the Qaqortorsuaq Anorthosite project".

Mayor Herman Berthelsen said:

"This is also a great day for the Municipality of Qeqqata and the people of the local community, not least our young people. We have all been looking forward to the mine becoming a reality and I hope the project will benefit all parties in many years ahead".

Initial activities are already being planed this year followed by construction in 2016 and full production by 2017. According to the IBA, 50 % of the workforce in the construction phase will be local workforce. The target in year three of the production phase is 80 % local workforce. In total 61 persons will be involved in the project from 2017 and onward.

Hudson Greenland A/S said

"This IBA builds upon our excellent relationships in Greenland and confirms our commitment to work together to build a successful mining operation. The White Mountain project has the potential to have a very meaningful economic impact in Greenland while maintaining a small environmental footprint".

According to the agreement a substantial part of the yearly purchase of goods and services for the mine has to be local anchored. Certain jobs during the construction and production phases such as transportation, security, catering and fuel delivery, have already been marked in the IBA for Greenland enterprises. Activities related to blasting, processing and mine hauling will be performed by Hudson Greenland A/S.

As part of the IBA, Hudson Greenland A/S has to prepare a recruitment strategy and work closely with the municipality, the labour market parties and educational institutions. A number of internship and apprenticeship positions will be implemented in the project, including training and education programmes for new employees in various positions.

Hudson Greenland A/S will allocate DKK 100,000 each year in 2015 and 2016 and DKK 200,000 from 2017 and until the decommissioning of the mine to social and cultural funds. The Licensee will also allocate DKK 100,000 each year in 2016 and 2017 and DKK 300,000 each year from 2018 and until the decommissioning of the mine to educational funds. If the yearly production is increased the total fund amount will automatically be raised according to a negotiated scaling model.

The purpose of these funds is to improve job opportunities for skilled and unskilled workers in relation to mining and to promote and support local culture and sport initiatives.

Read the speach by Mr. Vittus Qujaukitsoq from the signing here.

Read the speach by Mr. Anda Uldum from the signing here

 

For further information please contact:

James Tuer, President, Hudson Resources Inc, phone +1 (604) 688-3415, e-mail tuer@hudsonresources.ca.  

Jørgen T. Hammeken-Holm, Deputy Minister, Ministry of Mineral Resources, phone 346846, e-mail joeh@nanoq.gl.

Jørn Skov Nielsen, Deputy Minister, Ministry of Industry, Labour and Trade, mobile 55 61 88, e-mail jsn@nanoq.gl.

Laust Løgstrup, Municipal Director, Qeqqata Kommunia, mobile 70 21 00, e-mail laul@qeqqata.gl.