Perspectives from Greenland – Achievements and challenges
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Transcript of Perspectives from Greenland – Achievements and challenges
Slide 1
For at ændre ”Enhedens navn” og ”Sted og dato”:
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Perspectives from Greenland –Achievements and challenges
Slide 2
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod
”The Committee for Greenlandic mineral resources to the benefit of society”
• A collaboration between UCPH and Ilisimatusarfik, University of Greenland
• A 360 degrees analysis on how Greenland (and Denmark) can benefit from extraction of natural resources
• 13 researchers
• A cross-disciplinary project: Law, biology, sociology, geology, Asian studies, Security studies, economics, history.
• 450 pages of peer reviewed background papers
• The report – in Danish, English and Greenlandic – ”To the benefit of Greenland”
Slide 3
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod
The task - given by the rectors
•Analyse the practical potential for extraction of mineral resources…”
•….how does this potential relate to the scope of any potential extraction projects defined by investment requirements, labour requirements during construction, mining and closure phases as well as the life cycle and environmental impacts….”
•”How exploitation of natural resources can create value in Greenland and Denmark…”
Slide 4
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod
A good point of departure
Proven and well described reserves of great potential
Adequate and well developed legislation
General political stability
Good ranking among mining companies
Strong marketing efforts
Slide 5
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod
Note: Excl. interest payments. GDP estimated in 2012. Forecast from sustainability model with 1 per cent productivity growth. Source: Statistics Greenland, Economic Council of Greenland.
BUT a challenged economy – foreign investments are necessary
= 800 mio. dkk per year
Slide 6
For at ændre ”Enhedens navn” og ”Sted og dato”:
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And Asia is still hesitant…
Slide 7
For at ændre ”Enhedens navn” og ”Sted og dato”:
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10 main challenges and barriers
1. A small population = 56.000 - and labour force = 25.000 - not sufficiently educated
2. A small and challenged economy causes need for foreign investment
3. Lack of resources in administration. Bottle neck problems
4. Infrastructure is lacking and large investments are needed
5. Global market trends > commodity prices dropping after anomalous
high
6. Reluctance towards Danish ”interference”7. Profits are smaller than expected and the potential has been
exaggerated
8. Citizens are feeling excluded from the processes 9. Risk of jeopardizing renewable resources and marginalizing Greenlandic
population if extraction projects are introduced too quickly
10.The need for a ressource wealth fund
Slide 8
For at ændre ”Enhedens navn” og ”Sted og dato”:
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Naalakkersuisut has launched a strategy
Naalakkersuisuts Oil and Mineral strategy:-> 3-5 mines before 2018 -> 1 or 2 offshore oil drillings every second year
”To the benefit of Greenland”:-> Maximum 1 mine before 2018 Oil
production might be possible in 20-50 years
Slide 9
For at ændre ”Enhedens navn” og ”Sted og dato”:
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The Greenlandic dilemma Close correlation between level of activity and import of workforce and government revenue. Independence based on revenue from mining could jeopardize independence for the present population – infrastructure would belong to foreign investors
Slide 10
For at ændre ”Enhedens navn” og ”Sted og dato”:
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Requires launch of new large project every other year until 2040
Scenario 3 – full speed and building up a wealth fund
Very small reduction in block grant
Quick rise in profits – Quick reduction when ”low hanging fruits” exploited
Increase in revenue only until 2027
Yield on interest of about 5 % may be used every year
Quick increase need for international labour
Slide 11
For at ændre ”Enhedens navn” og ”Sted og dato”:
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Scenario 4 – multi-pronged strategy
Max. 5 projects in total launched in special zones in the course of
20 years
Wealth fund
Very small reduction in block grant
Increase in revenue only until 2027
Yield on interest of about 5 % may be used every year
In the course of 10 years the revenue from fund and in increase in public spending willbalance
Build up new sources of income
Slide 12
For at ændre ”Enhedens navn” og ”Sted og dato”:
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What happens next?
• Small steps have been taken in order to reachout to DK for investment
• A strategy for industry-development on the way
• But also necessary to self-evaluate administrationand transparency issues
> need to turn the procesand start with citizen and introducing industry and nature
• preservation zones
Slide 13
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod
Slide 14
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod
Slide 15
For at ændre ”Enhedens navn” og ”Sted og dato”:
Klik i menulinjen, vælg ”Vis” > ”Sidehoved / Sidefod”.Indføj ”Sted og dato” i feltet for dato, og ”Enhedens navn” i Sidefod