Greenland waives mineral exploration license obligations for 2020
The government of Greenland recently announced it will waive mineral exploration license obligations and expenditures through to the end of the year, as part of emergency relief it is providing to the mining sector amid the covid-19 pandemic.
The decision covers all companies with exclusive mineral exploration licenses in Greenland (including special exploration licenses) regardless of the license age, and relates to expenditure obligations between January 1 and December 31, 2020.
With zero exploration obligations for the calendar year, the government’s aim is to help companies operating in Greenland retain their projects in these challenging market conditions.
Further to the approved zero obligations, the government is also considering two additional relief measures, the first being the postponement of administrative case handling expenses. The second initiative under consideration is to temporarily, partially or fully reimburse the funds held in escrow for clean-up and environmental monitoring. The decision on both initiatives is expected by April 19.
One of the companies currently exploring in Greenland is Canada’s Hudson Resources (TSXV: HUD), which owns the White Mountain (Qaqortorsuaq) anorthosite mine as well as the Sarfartoq rare earth elements (REE) and niobium exploration license.
Hudson said it hopes to restart exploration activities at Sarfartoq later in 2020 with a focus on the high-grade niobium targets, but this will depend on the restrictions caused by the pandemic.
At the White Mountain anorthosite mine, which is permitted for 50 years, limited activities are ongoing, but under strict controls with no travel allowed in or out of the site.