Additional adjustments of the exploration obligations and a one-year extension of the licence period

On 27 August, the Government of Greenland approved a proposal for two initiatives:

  1. Postponement of the transferred outstanding annual exploration obligations for all mineral exploration licences by one year.
  2. Extension of the licence period for all mineral exploration licences by one year.

The approval comes as the Mineral Resources Authority is monitoring the global COVID-19 situation and has been in close contact with the industry and the mineral companies in Greenland. The approval is intended as an extension of the Government of Greenland’s decision from 2 April, which set exploration obligations for year 2020 to zero.

Licensees have exploration obligations in Greenland, which include financial obligations to conduct exploration activities. The financial obligations are based on the licence age and the size of the licence. The current situation, however, restricts the licensees to fulfil their obligations. The Government’s decision to set the exploration obligations for year 2020 to zero did not affect the transferred outstanding obligations from previous years, which the licensees would have still needed to fulfil in 2020. The current Government approval, however, postpones these transferred outstanding obligations by one year. This means that the outstanding obligations that the licensees would have needed to fulfil in 2020 are transferred to 2021.

The extension of the licence period by one year means that 2020 is taken out of the licence period, i.e. year 2020 is temporarily “paused”. This means that all licences will expire one year later than they were supposed to.

For more information, contact the Mineral Licence and Safety Authority at [email protected].

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Scroll to Top