The Government of Greenland has approved the adjustment of mineral exploration obligations for 2020 for all exclusive exploration licences to zero. This decision covers all companies with exclusive mineral exploration licences in Greenland (including special exploration licences) regardless of the licence age, and relates to expenditure obligations between 1 January 2020 and 31 December 2020.
The adjustment comes as the Mineral Resources Authority is monitoring the global COVID-19 situation, and understands the resulting challenges for the mineral resources industry. With zero exploration obligations for 2020, the Mineral Resources Authority and the Government of Greenland aim to help companies operating in Greenland to retain their projects in these challenging market conditions.
Further to the approved zero obligations, the authorities are working on two more mitigating initiatives to help the licensees. One of the initiatives is to postpone the licensees’ obligations to pay the administrative case handling expenses for their exploration and exploitation licence administration. The second initiative is to temporarily, partially or fully, reimburse the funds held in escrow for clean-up and environmental monitoring. These initiatives are not yet approved by the Government. Decision on these two initiatives is expected by 19 April 2020.
For further details on the adjustments, please see the official letter from the Mineral Licence and Safety Authority: Important information to all Licensees
Further enquiries regarding the zero exploration obligations for 2020 and the other measures, please contact our official e-mail email@example.com or your case officer.