Grafit project gets exploitation license

On Monday, Naalakkersuisoq signed for Erhverv, Råstoffer, Energy, Justice and Equality Naaja H. Nathanielsen together with Stefan Bernstein, who is director of Greenland Graphite A/S, a 30-year-old exploitation permit for graphite at Piiaaffik Amitsoq.

The permit gives Greenland Graphite A/S, a Greenlandic subsidiary of British GreenRoc Strategic Materials Plc, the opportunity to utilize graphite, which is used, among other things, for the production of batteries for use in the green transition.

Efficient case management

Naalakkersuisut's Minister for Industry, Minerals, Energy, Justice and Equality, Naaja H. Nathanielsen, stated during the ceremony that the company's exploitation permit is the third that Naalakkersuisut has granted this year.

In June, Greenland Resources received a exploitation permit for molybdenum from Malmbjerget and in May, Greenland Anorthosite Mining received a exploitation permit for anorthosite from an area near Qeqertarsuatsiaat.

- This is a very positive record and it is particularly worth noting that the process from application submission to issued exploitation permit has only taken 1 year and 3 months. This is significantly shorter than in many other countries and is clear proof that the revised Mining Act is working as intended. The goal was to streamline the process without compromising high environmental standards, safety and social responsibility. Today's exploitation permit is the result of targeted political work to make Greenland more attractive for responsible investments, while taking people and the environment seriously, says Naaja H. Nathanielsen in a press release.

Important milestone for the company

CEO of Greenland Graphite A/S, Stefan Bernstein, said at the signing ceremony that it was a great honor and an important milestone for the company on the path towards making graphite production in Greenland a reality again after the mine has been closed for 100 years.

– At the same time, we are very aware that the extraction from Amitsoq should benefit Greenland, and especially the neighbors in South Greenland, says Stefan Bernstein, who explains to Sermitsiaq that the exploitation permit is important, not least for investors, because it shows that there is political goodwill towards the project.

– The exploitation permit removes some uncertainties, especially for investors, because they now know how Greenlandic society views the project. A exploitation permit is very tangible proof that Greenland is serious about its desire to be a resource country.

Long way to go

According to Stefan Bernstein, however, there is still a long way to go before the company can actually start producing graphite. The company will soon ship 30-35 bags of graphite ore, which will be used for further research in laboratories abroad.

– The results from the laboratories will be included in the large profitability study, which we expect to launch during the coming year. In addition, we expect to start a drilling campaign in the spring, which will give us more information about how the mining can take place. So we still have a couple of years of work ahead of us before we can start establishing the mine, says Stefan Bernstein, who also mentions that approval of environmental and social reports as well as mining and closure plans are pending.

Consequences for the environment and society

Naalakkersuisoq for Fisheries, Hunting, Agriculture, Self-Sustainability and Environment, Peter Borg, was also present at the signing ceremony and emphasized the importance of developing resource projects with respect for nature and the environment, and that it was crucial that the work on environmental assessments and social sustainability be anchored in openness, professionalism and with the involvement of local people.

The next step for Greenland Graphite is to submit the project descriptions for the environmental and social reports (EIA and SIA) for consultation. Once these have been approved by the Government of Greenland, the company will prepare mining and closure plans.

Greenland Graphite A/S has until December 31, 2028, to submit a mining and closure plan. Mining activities must commence no later than December 31, 2030, unless otherwise approved.

Before exploitation activities commence, an Impact Benefit Agreement must be concluded between the company, the Municipality of Kujalleq and the Government of Greenland.