A joint public funding effort from Denmark and Greenland has been set into motion in a bid to kickstart the Nalunaq goldmine, which went bankrupt in 2013.
The Danish growth fund Vækstfonden will team up with Greenland Venture to inject 15 million kroner into the mine, which was operational from 2004 but faltered in 2013 due to a drastic decline in the price of gold.
“The investment can help the Nalunaq mine take an important step forward and the company behind it is ready to quickly get started with production,” said Rolf Kjærgaard, the head of Vækstfonden.
“That will contribute to increased growth and development in south Greenland.”
As the mine has been operational until recently, the existing infrastructure will be conducive to a swift and fresh start.
Mining for independence
Just a few years ago, there were great expectations that Greenland could embark on a mining adventure that would eventually make it independent of Danish financial support, but so far this has failed to materialise.
Nalunaq will be the first goldmine in Greenland and just the third active mine on the island overall – the other two being the ruby mine Qeqertarsuatsiaat and the anorthosite mine in Kangerlussuaq.
It is yet unknown when the Nalunaq mine is expected to open again.