The Social Democratic government party Siumut is in favor of the mining project, while the major opposition party Inuit Ataqatigiit will shelve the plans.
If they become a reality, and the Australian company Greenland Minerals begins to extract rare earths and uranium, DKK 1.5 billion will be smoked in the national coffers every year for 37 years. It assesses the company at least itself, writes knr.gl.
Denmark’s block grant to Greenland is DKK 3.9 billion a year. But if Greenland will earn 1.5 billion kroner annually on the mining project at Kuannersuit / Kvanefjeld, the block grant according to the Self-Government Act will fall by 750 million kroner.
The text of the law is worded as follows: “If the Greenland Home Rule Government receives revenue from raw material activities in Greenland, the state subsidy to the self-government will be reduced by an amount corresponding to half of the revenue, which in the year in question is over DKK 75 million”.
The block grant will thus fall to DKK 3.15 billion a year if the mining project comes out with the profit that Greenland Minerals expects.
But it also means that there will be an extra 750 million kroner in the national treasury, even if the block grant is lowered.
This is what the income from the mining project will look like according to Greenland Minerals:
* DKK 136 million of tax from the employees’ salaries.
* NOK 30 million from royalties on uranium.
* DKK 1.35 billion from corporation and dividend tax.
Total: NOK 1.516 billion per year.
Source: Knr.gl., Greenland Minerals.
Source: The Nordic Page