GREENLAND. Business in Greenland. The supply industry. in the. The whole world joins the hunt for oil and minerals in Greenland Side 11

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1 GREENLAND Business in Greenland Greenland s Minerals new jobs in The supply industry Oil and gas in the first well Many prospecting companies searching for minerals in Greenland Side 6-7 Mineral extraction will provide new business opportunities. Side 8 The whole world joins the hunt for oil and minerals in Greenland Side 11

2 GREENLAND 2 liquid fuel products The key to business life in the land of opportunities The Employers Association of Greenland is the leading organisation on the Greenlandic labour market. It is not only the hub of the country s business community, but also takes part in the public debate in many other areas 02 The key to business life in the land of opportunities 04 National and regional business development 05 Greenlandic experience is essential 06 Greenland s minerals 08 The supply industry must provide jobs, and thereby development 10 The economic climate Oil and gas in the first test well 12 Hydropower from the inland ice 14 3G and All IP in Growing into the future dic success in the international competition for innovation, growth and jobs will be to create the optimal environment for this development, not least in relation to involving Greenland s own workforce, to the greatest possible extent, in the country s future industrial development. This is a cardinal point for society, and therefore also for the Employers Association of Greenland. On the basis of solid national roots, and with a thorough knowledge of the local climate, nature and culture, GA s task is therefore to help to secure the best possibilities to establish, operate and develop more businesses in Greenland. In a country where the public sector economy has hitherto been dominant, the development of a stronger private sector is crucial for a positive business development - and thereby for the possibility of creating a society in social balance. The globalised market and the major foreign investments will impose increased demands on Greenlandic businesses and on their ability to compete. As mentioned, the Employers Association of Greenland is the country s largest business network, in which the knowledge and skills of companies are developed through courses, conferences and focused information work. These efforts have concentrated particularly on requirements towards safety, flexibility and adaptability which can live up to international standards. Another important task is to make knowledge available to companies wishing to settle in Greenland: operating under arctic conditions requires insight, experience and local commitment. Social responsibility and networks One of the new initiatives which has been set up at the request of the Employers Association of Greenland and some of our member companies is CSR Greenland. We view working with a coherent and well-structured CSR policy as a natural part of our tasks in the field of business ethics - and we do this both on the basis of a national tradition of showing social responsibility, and with a focus on the demands of international companies towards Corporate Social Responsibility. With its great level of support, the Employers Association of Greenland is the natural linchpin for the country s business community. It is thus the key to creating optimal conditions for business, including future businesses in both existing and new industries. We are therefore pleased to provide knowledge and information about both business structures and other social factors of significance for achieving results in Greenland. Our profile & mission We are the largest oil supply company in Greenland. We buy, transport, store, distribute and sell consumer and environmental liquid fuels throughout the year to the whole of Greenland at the lowest possible, stable prices. We buy, store and sell other technical and related products where this can be done on commercial terms. Henrik Sørensen Chairman, Employers Association of Greenland Our links with kni A/s where we Are Greenland Polaroil operates all over Greenland. Towns Polaroil operates manned tank farms in all towns. Settlements Polaroil has tank facilities in all settlements which in accordance with a service contract are manned by Pilersuisoq. We are part of Kni a/s. Polaroil is Kni s Energy division. Henrik Sørensen is chairman of the Employers Association of Greenland, which works to secure the best opportunities to establish, operate and develop businesses in Greenland. Experience combined with visions for the future The prerequisite for Greenlan- INFO UP Kalaallit Nunaanni Sulisitsisut Peqatigiiffiat Front Communication Grønlands Arbejdsgiverforening This supplement has been produced by UP Front Communication HANS BAK Kalaallit Nunaanni Sulisitsisut Peqatigiiffiat The Employers Association of Greenland Grønlands Arbejdsgiverforening we are able to supply mining and Oil industry in Greenland with liquid fuel products ProjectProjektleder/Direktør manager/director / Hans Bak Editor/journalist / Stig Albeck Graphic design / PoLa Grafisk: Mogens Lauridsen Photographers / Lars Weiss, Esben Hardt, AceAndAce Print / Trykkeriet Nordvest Sjælland Translation / O Shea Translations UP Front Communicantion Ehlersvej Hellerup Tel mobil mail hans.bak@mail.dk Kni a/s is wholly-owned by Greenland home rule. products Arctic gas oil AGO -27 Motor gas oil MGO -20 Diesel Fuel Arctic DFA -47 Gasoline Petroleum Jet A-1 IFO 30 IFO 180 info design aps nuuk 2/2011 INSIDE As an employers organisation, the role of the Employers Association of Greenland (GA) is of course primarily to secure the best possible terms for business, and to represent the interests of the business community towards politicians and the public authorities. At the same time, GA devotes a great deal of focus to skills enhancement and to ensuring that companies and their staff are well prepared for the future. But on the basis of its significant membership growth and consequent influence in society generally, GA is also attentive to such areas as infrastructure, education and social issues. Through a proactive information policy, GA is a committed participant in the public debate; often in interplay with the other partners in the labour market and with a special emphasis on constructive dialogue with the country s political leadership. The level of economic activity in Greenland will obviously increase significantly if the many foreign investments in mineral resource exploration turn into actual oil and mineral extraction. This will open up new opportunities for Greenlandic businesses, particularly in the ancillary and service industries. At the same time, Greenland s other business sectors, such as fishing, food processing and tourism, are enjoying a period of growth, and are increasingly competing on global terms. So irrespective of whether the expected activities in the mining area - sooner or later - affect the economic picture, the country s existing businesses will continue to provide a foundation for the economic development which is so necessary for Greenland. P.O.BOx SiSimiut GrEEnland PhOnE.: Fax: how to contact polaroil: Peter Grønvold Samuelsen managing director pgs@kni.gl Tage Lindegaard technical manager tal@kni.gl Jens Bonfils locistics manager jbf@kni.gl

3 GREENLAND GREENLAND 4 5 Greenlandic experience is essential With arctic conditions, logistically challenging towns and CSR as a part of daily life, high demands are made of the experience of Greenlandic businesses in functioning as an active part of the local community. Martin Kviesgaard regards it as a major social responsibility to run the Bank of Greenland as a strong and reliable bank that customers can trust, and which supports entrepreneurship. The retail sector in Greenland is a good example of the kind of extensive and responsible planning work, and in particular experience, that is required in order to operate in Greenlandic society. Many different skills are involved, and many factors must be taken into account, if you are to present the right service and always have the right assortment on the shelves. One company with many years of experience in Greenland is Stark, which has shops in five towns: Qaqortoq, Nuuk, Sisimiut, Aasiaat and Ilulissat. Stark s timber manager, Poul Erik Nørnberg, is in doubt about the essential factors for success: Meticulousness is the key word in all respects - both towards our customers and employees, and in a purely logistical sense. We have for example shops in two towns which are icebound in winter, and with four months without shipping, we need to be able to predict the local market needs far in advance. An active partner It is important in all businesses to know your customers needs, but in Greenland this has special significance. We are close to our customers, in small communities. Our staff will inevitably meet the customers in other contexts, so we must be careful to adapt and deliver correctly every time, says Poul Erik. CSR is something else that comes naturally to Stark. Skills enhancement is highly valuable, both for Greenland and for the individual. We focus for example on taking on local apprentices and providing them with an all-round sales training, which they can either use at Stark or somewhere else. Training is central to our business, but we also provide a wide springboard for other opportunities in the future, says Poul Erik, who also mentions local commitment as a key element of running a business in Greenland. The future depends on experience We emphasise active participation in the local community. As an employer, we feel an obligation to help to develop the towns in which we are based, says Poul Erik, who sees potential in We emphasise being an active participant in the community, says Poul Erik Nørnberg, managing director of Stark. meticulousness and commitment. The anticipated growth in the oil and mining industry may lead to orders from the ancillary industry, or as a result of a general increase in economic activity. We are ready for growth, and for the future development in our customers, through our experience with delivering supplies in arctic conditions, and our local commitment. Operating companies in an arctic climate, with towns that are icebound in winter, places great demands on experience, processes and skills. National and regional business development Entrepreneurship, good advice and sound financial sense are the keys to the development of Greenlandic businesses. The government s work to establish a new business promotion structure is a central element The Government of Greenland has begun the work of creating a new business promotion structure to enhance development in the private sector, which will be the foundation for a substantial proportion of the country s future prosperity. The government s aim with its regional development strategy is to create more growth companies, increase productivity, and ensure a greater degree of self-sufficiency in the country, says Ove Karl Berthelsen, Minister for Industry and Mineral Resources. In recognition of the major differences in the future business structure between the country s various regions, the government has decided to develop the strategy with a regional focus. It is essential that we do not forget the outlying districts in our vast country when business needs to be developed. We are therefore in the process of establishing a regional development strategy in which each of the six regions will have a business development plan based on their own unique potential, says Ove Karl Berthelsen. The strategy is being compiled in close co-operation with the four new municipalities. Bank of Greenland director Martin Kviesgaard agrees with the goal of the government s strategy: The government s goal of developing the business environment is a basic prerequisite to allow even more economically sustainable enterprises to be created. A strong financial partner Business development cannot be created without good ideas and the funds to support them. Martin Kviesgaard therefore sees a major social responsibility in the way in which the Bank of Greenland carries on its business. A strong and reliable bank is one that has a sound financial The government s aim is to create more growth companies, says Ove Karl Berthelsen. basis, and is therefore able to lend money, which allows the crucial balancing of maximum long-term growth versus risks. This applies both to individual companies and to the Bank of Greenland. The Bank of Greenland is and must be ready to help to finance the share of Greenlandic companies in, for example, the expected ancillary industries in the minerals sector. At the close of the third quarter this year, the Bank of Greenland had a strong surplus of DKK 77.5 million, and thanks to sound business policies, the bank has not had any difficulty in obtaining external financing outside the recent bank packages. For 43 years, through economic upturns and downturns, the Bank of Greenland has been a solid player on the market, with whom customers have been confident to save their money. This is an important signal, and one which helps to ensure we can fulfil our role in society, says Martin Kviesgaard. The vital entrepreneurship At the turn of the year, the advice service for entrepreneurs was transferred to Greenland s municipal development corporations, to ensure that guidance is as locally-based as possible for users around the country. The guidance is supported by a massive public campaign to boost skills through courses offered by the country s trade schools. The Government of Greenland has also allocated funds to support product development. As Ove Karl Berthelsen says: In Greenland, we possess both enterprise and resourcefulness. There are plenty of good ideas here - the challenge is to create a framework to help these ideas onto a viable level that will generate jobs and profits. A concrete initiative in this area is the new entrepreneur centre in Nuuk, where the emphasis is on companies that can promote exports or reduce imports. The key words here are sparring about innovation, creativity, sustainability and growth. The Bank of Greenland is also involved in this work, as Martin Kviesgaard mentions: The Bank of Greenland makes its knowledge and experience available through, for example, teaching evenings and entrepreneur days. These activities are attended with great interest, and round about in Greenland we can see that they are backed up by initiatives large and small in, for example, the tourist area and in the formation of partnerships in the mining ancillary industries. According to Martin Kviesgaard, collaboration models, along with skills enhancement, represents the way forward. As an example, he mentions the growth of recent years in the Canadian town of St. Lawrence. If oil is found, or if a large mine or aluminium plant is established, then Greenland today might very well be St. Lawrence minus 15 years. There are now 8,000 landbased Canadian jobs there as a result of mining investments and many new local initiatives. Greenland Mining Services A/S Phone Phone Core drilling Transportation Camp solutions Catering Contractor service Construction and plant Maritime tasks Consultancy services

4 GREENLAND GREENLAND 6 7 Greenland s minerals Gold is our core area, but nickel, copper, tungsten and strategically important rare earths constitute a growing share of our activities, says Ole Christiansen, managing director of NunaMinerals A/S. Oil, gas, minerals and other business opportunities. Greenland has it all. Including a law firm that knows what you need and how to deal with it. Nuna Law Firm is the leading law firm in Greenland. We have had our offices in Nuuk for more than 40 years and possess an extensive experience within all the special conditions in Greenland. twenty to thirty prospecting companies are hunting for mineral resources in Greenland over an area of 20,000 km 2. Along with the companies will come investments that will turn Greenland into an industrial nation Mineral prospecting in Greenland has gathered considerable pace in recent years, and the investments, measured per unit of land, are now on a par with those of traditional mining countries such as Australia and Canada. This opens up prospects for the development of Greenland into an industrial society. The NunaMinerals company is one of the local exploration companies who have licenses and concession shares throughout all of Greenland. Ole Christiansen, the company s managing director, sums up the hunt so far: companies have prospecting permits, four exploitation concessions have been granted, and one mine is already in operation - the Nalunaq gold mine in Kirkespirdalen. Five to ten new mines will be opened in the coming five to ten years, and there will be more in the years to come. Right now, many international operators are undertaking profitability studies, which includes an assessment of the effects on both the environment and society, together with commercial considerations of the economic potential of mine establishment, where the main rule for healthy profitability is a return of more than 20%. Profitability studies are long and complex affairs, and the results must be submitted to the Bureau of Minerals and Petroleum for assessment before any exploitation permit can be issued, says Ole. Right now, NunaMinerals is involved in 19 concessions, with potential uses divided between precious metals, base metals, rare earths and other metals. Gold is NunaMinerals core area, but a growing share of its activities is also accounted for by prospecting for base metals, such as nickel and copper, and other metals, such as the strategically important rare earths (REE) and tungsten. A changing market The world market for metals is undergoing a process of change at the current time. The so-called BRIC countries, Brazil, Russia, India and China, are developing rapidly, with soaring consumption of raw materials. And while the London Metal Exchange used to be almost totally dominating in the international metal trade, there are now several other linchpins affecting supply and demand. China, for example, is now not just a major player in mining, but also in processing raw materials. In just a few years, the country has gone from being a net exporter to a net importer of minerals, says Ole. This creates a new global competition for resources, in which Greenland is on its way to becoming a major new supplier, which is of interest to the EU and the USA, amongst others. Rare earth elements Top of the EU s list of essential raw materials to ensure growth and development are rare earth elements, of which China is today virtually the only producer, while also being a major consumer of its own resources. Secure and future-proofed access to these elements is therefore of strategic global importance - and there are large deposits in Greenland. Ole Christiansen predicts that the extraction of REE will become an important area over the next 5-10 years. For the EU, platinum and tungsten are for example high-priority raw materials, in addition to the rare earth elements, and for all these minerals there are prospecting projects underway in Greenland, says Ole, indicating that there may be a ten-year investment horizon from project start to the beginning of extraction. Several rare earth element projects are well advanced in their profitability studies, and these may soon be approved for mining. Facilitator NunaMinerals largest shareholder is the Government of Greenland, and as well as The many mining operators in Greenland offer prospects for the opening of 5-10 new mines within the next 5-10 years. The EU and the USA are among those who see Greenland as an interesting new major supplier. operating on commercial terms, the company also functions as a facilitator to ensure that momentum is maintained for Greenlandic society through increased international investment in mineral projects. We have an interest in promoting the development of new projects that can lead to mining operations. The foreign companies must act as the locomotive to drive the industrialisation of the country, and although we are happy to enter into operation ownerships of up to 40%, or royalty agreements, this is not a prerequisite for the growth of society through our work, Ole concludes. Qullilerfik 2, 6. sal Nuuk Tel. (+299) @nuna-law.gl Kalaallit Forsikring Agentur A/S (If Insurance Agency Greenland) Your partner in Greenland Industrial, Commercial and private insurance solutions of all kind. Great experience in Greenland Experience with the Mineral Sector Languages: Danish, English, Greenlandic and German. Kalaallit Forsikring Agentur A/S is a private owned insurance agency company. We operate in Greenland in contract with If Insurance, the leading P&C insurance company in the Nordic and the Baltic countries. Kalaallit Forsikring, is a well known brand in Greenland and together with If Insurance we have been operating in Greenland for more than 100 years and therefore has great experience with Greenlandic culture, infrastructure, geography and nature. Our head office is placed in Nuuk the capital city of Greenland but we are also represented with offices in Sisimiut, Ilulissat and Qaqortoq. We advise in and distribute all kinds of insurance solutions to the private, commercial, industrial segment. Kalaallit Forsikring Agentur A/S Sipisaq Avannaleq 1, Postboks Nuuk Tel: Fax: kfa.erhverv@if.dk Henrik Sørensen CEO Cell: Michael Linfos Sales Manager Cell:

5 GREENLAND GREENLAND 8 9 The supply industry must provide jobs, and thereby development Permagreen Misilittakkanit siunissamullu sanaaneq Building on experience and for the future international investment in mineral extraction represents a great opportunity for Greenlandic companies to develop through collaboration with foreign companies Most of Greenland s business life has up until now been characterised by operations in relatively small and local markets. This is partly because the nascent industrialisation is of recent date, and partly due to the infrastructure of towns scattered along the vast coastline. But this situation is now changing. The many new projects in the oil and mining industry have created the expectation of new opportunities for businesses as subcontractors to large mining and construction operations. For the Employers Association of Greenland, the objective is clear. We must ensure that Greenlandic companies and thereby society as a whole can obtain as large a share of the new revenue as possible, and we are actively working to influence the framework conditions so that this can happen, says Henrik Leth, director of the Employers Association. One of our most important tasks is to publicise the potential and skills of the Greenland business community. We do this partly by participating in relevant trade fairs and conferences around the world, where we can establish networks and partnerships between Greenlandic and foreign companies, but we also put a lot of effort into providing training courses and conferences in Greenland, where the goal is to prepare the country s business community for the coming demands. Many foreign companies will be setting up in Many new companies will come and establish themselves in Greenland. We must be prepared to receive and integrate these, with a view to local partnerships and employment, says Henrik Leth, director of the Employers Association of Greenland. Greenland in the years ahead. As a society, we must ensure that we have a reception apparatus ready, so that these companies can be integrated as rapidly and as well as possible. This is the prerequisite for the co-operation that will make it possible for local companies and their employees to become part of the development, which is of course essential, continues Henrik Leth, who emphasises that the more than 500 member companies in the Employers Association of Greenland are prepared to demonstrate flexibility. We can see that our members in the various sectors take the challenges very seriously. There are great expectations towards the future, but at the same time, preparations must be carefully carried out. This is a sensible attitude which allows us to approach the tasks with humility, while at the same time being aware of the strength conferred by in-depth local knowledge, cultural familiarity and experience with the local nature and climate. Skills enhancement are part of the preparations The Greenland Mineral Resources Act specifies that Greenlandic companies must be employed as suppliers, if they are otherwise commercially and technically competitive. A number of concrete initiatives have therefore been undertaken in the area of skills enhancement. Like the Employers Association of Greenland, the Ministry for Industry, Agriculture and the Labour Market is engaged in preparing frameworks and training courses to match the new business structure. The anticipated development in the oil and mining industries is being supported with massive public sector efforts in the area of education and training, partly through courses offered by the country s trade schools, says Ove Karl Berthelsen, Minister for Industry and Mineral Resources. These courses are aimed particularly at work in the mining industry. A course has for example been planned for the Mining & Construction School in Sisimiut, which from the autumn of 2011 will be offering a special training programme in mining as an actual career choice after completing secondary education. A chance for knowledge and change The international mining operators are coming to Greenland with international experience and new knowledge, and they will be very welcome, Henrik continues. This knowledge is something that we can learn from as a society. But the companies are also bringing methods and requirements that we must live up to. Greenland must in other words adapt to the world market, and we are willing to do that. It s a different way of doing business, but on the other hand it opens up a great store of potential knowledge. For Henrik Leth and the Employers Association of Greenland, it is a question of the population of Greenland being partners rather than spectators in the development: Our whole society is being given a marvellous opportunity, which we must make use of to the benefit of the whole country. It is important that the public and private sectors jointly grab this chance to give Greenland s business life a boost. Internationally, there are many examples of how such co-operation has produced good results. Norway and Canada, for example, have managed to handle an industrial transition to mineral extraction, and we in Greenland can naturally handle the task, too. Preben Kold Larsen Foto: Ulrik Bang/BANG.GL Liaison Permagreen Grønland A/S is among the leading construction companies in Greenland. We consist of about 200 experienced employees and have offi ces in fi ve cities along the west coast, based in Greenland s capital Nuuk. Our 60 years in Greenland has given us a wide network and good relations with the Greenlandic municipalities and the Government of Greenland.Our core competence is major projects - from residential buildings to all types of industrial buildings and associated works. We are wide-ranging and build throughout Greenland. We make things possible in Greenland Administration Payroll & taxes Accounting BMP reporting Translations Logistics Incoming Accomodation Storage Procurement Catering Site management Visa & work permits On call 24/7 Remote sensing Situated in the capital Nuuk, with a strong network of local contractors reaching all towns and settlements in Greenland and a proven track record, XS is your natural choice as a local partner. Martin@xplorationservices.com Mobile: Staffing Residential- and public sector buildings Commercial Units Roads, Runways and Quays Sewer pipes and systems Quarries Drill planning Core logging Geophysics HSE Xploration Services Greenland

6 GREENLAND GREENLAND Cairn Energy drilled test wells off Disko in the summer of Oil, gas and land-based workplaces were the immediate result. Let us assist you with your mining project With more than 50 years' experience from working in arctic conditions and in faraway locations, MT Højgaard offers assistance and guidance on practically all aspects of mining projects in Greenland. When you choose us as your collaboration partner we focus on the entire process of your project. Right from the first field investigations and feasibility Read more on mth.com/mining Spotting the opportunities in Greenland studies to the construction of infrastructure and operation of the completed mine. In this way, we ensure the best result for your project. No matter the extent of your project or how far it has progressed, we can contribute with knowledge and experience and help you to see the opportunities for your mining project. Throughout 2010 there was great activity in the operations of the oil and mineral companies, and construction in Nuuk contributed to positive growth. The economic climate 2010 Greenlandic companies are generally sound businesses with a desire for innovation and faith in the future. Training and mobility may be crucial factors in their degree of success The last few years of restraint in Western economies have had an impact on Greenland, but the prospect of potentially massive investments in the mineral industry, together with the secondary effects of this, offers growth potential of unprecedented dimensions. Henrik Thomasen is Project Manager with the consulting company NIRAS, and has been monitoring the Greenlandic economy for the past ten years. In 2010, it looks like we will end up with a modest but positive growth in the economy. The main reasons for this include the activities of the oil and mineral companies, but the extensive construction work in Nuuk has also had an effect. A bright future Investments by the international oil and mineral companies could have important consequences for Greenland s economy in the coming years, but Henrik Thomasen also identifies prospects in other parts of the economy: The existing private and public sectors in Greenland are also significant employers, securing frameworks, foundations and development. The public sector, Henrik Thomasen, project consultant with Niras. for example, is characterised by economic stability and is independent of economic trends. In the private sector there is potential for the development of tourism in such areas as business tourism and the cruise ship market. These are niches which could be of particular local importance. The mineral industry may also come to play a major role in the future. In addition to major investments in extraction as such, the industry s activities will have an ongoing knock-on effect on the supply industry, transport, hotels, etc. - and that is not counting capital investment in infrastructure, such as harbours and airports, Henrik adds. The key to success The potential is great in Greenland, and the goal for society is to gain as much as possible from any mining industry adventure. Henrik Thomasen suggests some of the factors which may help to determine success: Companies may very soon need to work at a volume and at levels that will make great demands on their mobility and skills. If, for example, the proposed aluminium smelter in Maniitsoq is realised, this will mean more than 1,000 new jobs during the operational phase, which in Denmark would be like creating 100,000 jobs at once. In purely physical terms this requires manpower, and the appropriate training and language skills will be in demand in many positions. Society should therefore concentrate on that, together with promoting mobility, and on economic policies which will increase the role of the private sector in the economy, he concludes. Oil and gas in the f irst test well the eyes of the world are on Greenland s unexplored areas of oil and gas resources. In its very f irst test bore, the Scottish company Cairn Energy found a working hydrocarbon system At the present time, the waters around Greenland are being carved up into licensed areas for oil and gas prospecting. International companies such as Husky, Chevron and ExxonMobil have obtained permits, and in eight of these fields the Scottish company Cairn Energy is in the process of data collection and test drilling, which may provide clues to the subterranean potential. Greenland is interesting to the company in several ways. The expectation of finding some of the world s largest untapped deposits naturally promises well, but in a partnership, the fact that Greenland has a friendly economic environment with accommodating and cooperatively minded politicians and businesses is also important, says Simon Thomson, Legal & Commercial Director of Cairn Energy. Control of expectations is central When announcements of oil and gas discoveries are made public, the expectations of the public rise towards commercial exploitation, but the two things are not necessarily connected. We spent gathering and analysing data, before the test wells this year provided us with evidence of a working hydrocarbon system. These wells then gave us new data which we must now submit to rigorous analysis to evaluate their potential, says Simon Thomson, who estimates that a horizon of 7-10 years might be the fastest scenario for production. The analytical work in relation to oil and gas prospecting is not as visible as the wells, but it is a prerequisite for achieving results. Seismic, sea bottom and environmental conditions are among the factors now being studied, and with the test wells comes new knowledge to be analysed before any oil can be retrieved. Greemlamd Petroleum Services GPS facilitates through platform members -Tax & payroll services -Visa & work permits -Staffing, training & education -Catering & housekeeping -Bunkering & stevedoring -Forging, welding & mechanics -Sand blasting & painting GPS Provides -Bridging & matchmaking -Administration & advisory services -Office facilities & warehousing -Lay down areas -Incoming, accommodation & logistics -Freight, handling, forwarding & customs clearing Frederikshåb Betoncentral ApS Greenland Petroleum Services A/S Greenland National Contractors ApS H.J. Rinksvej 11, Postbox 456 Grønlands VVS ApS 3900 Nuuk - Greenland Larsen & Co. A/S tel.: / mobil.: Nørskov Gruppen ApS Xploration Services ApS info@greenlandpetroleum.com

7 GREENLAND 12 We were founded in We are traded at OMX Copenhagen Stock Exchange. We are present in five major Greenlandic cities. Doing business in Greenland? The BANK of Greenland is the largest and oldest bank in Greenland. Our strong financial performances go years back. We have years of experience and great expertise in servicing Greenland s industry and commerce. We offer highly competent financial advice in our home-language as well as English. We have our ears on the ground in Greenland s business life no matter geography or sector. The BANK of Greenland Tlf We have up front knowledge of the new business opportunities, including the industries of mining and raw materials. We strive towards fast service and flexible solutions at competitive prices. Therefore, we are sure that we can help you in almost any banking matter, if you are interested in doing business in Greenland Call or write us for a non-committal talk. Hydropower from the inland ice Greenland s high-altitude glacial lakes give the country an opportunity to exploit this water to provide a large part of its energy production. At the same time, hydrogen technology and geothermal heat sources are also being tested Initial investigations into the potential for exploiting Greenland s hydropower resources began in The first plant was opened in 1993, and now approximately 60% of Greenland s energy production is derived from this climatefriendly energy source. Growth at the present time is particularly rapid. In 2006 our energy self-supply rate was 40%, and in 2013 it will be 70%. The figure represents green energy produced in Greenland, says Svend Hardenberg, energy manager with the national energy supply company, Nukissiorfiit. The company has made considerable investments in hydropower facilities, which usually have a payback period of 14 to 15 years, after which time the energy they produce is very cheap compared with fossil fuels, the use of which Greenland aims to reduce as far as possible. However, although the supply of water is practically unlimited in relation to the needs of the 56,000 inhabitants, the distribution of the population across 17 towns and 54 villages means that careful planning is required. We do not have a national energy grid, so for supply security reasons, we operate with double capacity. Water resources are on average located 50 km from the towns, and due to the considerable investments required, it is population density that decides whether deployment is justified, says Hardenberg, who suggests that the economically sensible limit for the roll-out of hydropower is around 80%. Besides supplying electricity, water and heating, Nukissiorfiit also provides advice to the major mineral industry projects, such as the aluminium smelting plant in Maniitsoq, which will be very energyintensive. I take part in the project development work, but the actual financing and management of the energy plants is all part of the project, Hardenberg remarks. Greenland s hydropower already accounts for more than half of the country s energy production a figure that is expected to rise to 80% in coming years. Energy of the future The fact that Greenland enjoys a relatively high rate of self-supply in green energy compared to other countries has not caused Nukissiorfiit to cease experimenting with other green energy technologies. The company has several test facilities in operation at its headquarters in Nuuk. Next spring we will be starting up a hydrogen plant to test its energy storage potential, which could be useful for Greenland, in order to save an energy surplus in summer for the higher consumption in winter, says Hardenberg. Geothermal heating is also being tested. We ve drilled 200 metres down into the mountains with heat pumps to exploit the temperature difference between the air and the rock. The results look promising, and the effect can be further enhanced by using solar panels to heat water, which can raise the temperature of the mountain rock before the winter, Hardenberg concludes. Sincerely, The Business Department Exploring the mineral potential of Greenland Photo from: Tikiusaaq REE project. One of the worlds few large carbonatite complexes. Highlights 2010: Qeqertaasaq REE project Surface trench samples up to 13% TREO Tikiusaaq REE project Surface grab samples up to 10% TREO Nanortalik Gold Province Shear hosted gold related to granitic intrusions Surface grab samples up to 1 kg/t Au Thule Iron & IOCG Province 14 Cu-Au targets located by geophysics Clusters of Cu-Au-Fe geochemical anomalies Nuuk Gold Province Partner funding for drilling Best intersection g/t Au Other attractive prospects: Amikoq PGE prospect Octopus Reef Pt+Pd Rhodium Zone Rh+Pt+Pd Ullu Diamond Project Considerable quantities of kimbertitic float located within a small area next to a lake 7 pipe targets located by magnetic surveys Previous worker located a macle diamond from a kimberlitic float from the area Ymer Tungsten & Gold Project High grade scheelite and stibnite mineralisation g/t Au, high tonnage potential Float samples contain up to 7 g/t Au NunaMinerals A/S Issortarfimmut 1 P.O.Box 790 DK-3900 Nuuk Greenland Phone: Fax: info@nunaminerals.com

8 GREENLAND GREENLAND 3G and All IP in 2014 with 3G mobile networks, IP telephony and European Internet speeds, the roll-out of modern communication systems in Greenland is right at the cutting edge, to the benefit of both citizens and businesses Well-functioning communications are essential for development in a professional knowledge society, and Greenland s sprawling geography and scattered settlements impose special demands on the technology and services on offer here. The responsibility lies with Tele Greenland, which in recent years has expanded its telecommunications infrastructure, so that Greenland is now linked to both Europe and North America via fibre optic cables, the capacity of which is expected to be sufficient for many years to come. Internally in Greenland, radio networks provide European Internet speeds from Nanortalik in the south to Uummannaq in the north. Our vision, as an essential ingredient for the development of business, is to place Greenland at the heart of the world, and today we enjoy the same communications possibilities here as across the rest of the globe, says Brian Buus Pedersen, managing director of Tele Greenland. One of our next goals is All IP in 2014, in which we have started a project to exploit the cutting-edge service opportunities offered by IP technology. Another project is a number concept, in which customers can choose whether to take their calls on their cell phones, landlines or computers. Channel-independent technology is just one of the areas in which Greenland is right up to date in terms of technology and the possibilities it offers. Today, Greenland enjoys the same communications possibilities as the rest of the world, says Brian Buus Pedersen. World record in broadband Tele Greenland delivers broadband to all the towns and villages of Greenland, which has one of the world s highest coverage rates for broadband Internet. The important thing about the coverage, according to Pedersen, is that it provides a basis for the implementation of concrete citizen and business-oriented initiatives. We have been working with video conferencing since 1994, including in telemedicine, and right now we are taking part in trials for the use of video communication in teaching. Video conferencing rooms have been established in almost every town, so that even companies without their own equipment can communicate across the length and breadth of the country and the world. Mobile telephony is another area in which Greenland is right up with the world s front runners. 3G networks have been rolled out in Nuuk, and other towns will follow in 2011, allowing more people to use the Internet on the move. Towns and villages with more than 70 inhabitants all have mobile coverage, and the GSM technology used goes beyond the usual 30 km. This means there is also coverage in large parts of the coastal areas, where there is a great deal of activity, as well as the potential for new business development, Pedersen concludes. Growing Into the Future Civil engineering works of a volume unseen before follows the growth of the raw material industry in Greenland. This provides opportunities for Greenlandic companies with focus on facing new needs and requirements The future in Greenland offers a growing number of comprehensive construction and operations jobs in raw material research and quarrying, and new competences and capacities are required of companies in Greenland. The international operators enter into cooperation to cover their needs, and the goal for local companies is to become preferred partners and obtain the biggest possible share of the jobs. The building and contractor company EMJ Greenland A/S, with 140 employees, is one of the Greenlandic companies that is preparing for the new challenges. Nicolaj Sørensen, General Manager of Atcon Greenland A/S, points out important preconditions of success for local companies. Visibility is important. Being a well known player who carries out challenging work and delivers according to agreement enhances the knowledge about us as a relevant and respected partner. The Tough Strengths Greenlandic companies have strengths that are highly appreciated by international task providers. Local knowledge of areas that are difficult to access in arctic climate is one of the fields that can provide new cooperation agreements. When the Black Angel-zinc mine in Northern Greenland was to be reopened, of our people were in on the task, which is a good example of local knowhow, says Nicolaj Sørensen. After 35 km on snow scooters we reached an abandoned mining area without water, heating and electricity. The first night was with heating blankets in buildings with no doors or windows, and that is where the build-up began. For the Atcon manager the example from the zinc mine shows a fine picture of the Greenlandic companies approach to the tasks. Experience, flexibility and a good mind characterize their way of working, and these are good cards to hold for the growth of the coming years. Developing Competence The business structure of the future in Greenland requires strong and competent units. Such a unit was formed in the spring of 2009 when EMJ bought Atcon, which is now a subsidiary of EMJ, and the acquisition may act as inspiration for other local companies that want to strengthen their capacity and competences to be equipped for new challenges. Through this acquisition we have reached a size that provides us with room to not reject comprehensive jobs. Our employees provide us with volume and together form a broad According to Nikolaj Sørensen, the way of working of Greenlandic companies is characterised by experience, flexibility and a cando attitude. competence profile, which we are careful all the time to improve with further qualifications says Nicolaj Sørensen, who finally points at being thorough at looking into the customers needs as the key to attracting and offering the right skills.

9 Your strongest partner in support and logistics for oil and gas exploration in Greenland A full-range supply of support and service for international companies dealing with the exploration and exploitation of oil and gas in Greenland All types of transport and logistics solutions Transport and operation in Arctic conditions Special tonnage Bulk supplies Forwarding Ship agency Stevedoring Camp solutions Ice pilots Air cargo Office facilities Supply of CCU s Waste handling Consolidation of goods and storage hotel Repair and maintenance of equipment Housing and accommodation Miscellaneous All types of supplies and procurement Change of personnel and crew Administrative tasks and bookkeeping Safety and regulation compliance Contact with authorities Communication Arctic Base Supply A/S Aqqusinersuaq 52 P.O. Box Nuuk Greenland Phone Arctic Base Supply A/S is a joint venture between Danbor Service AS & Royal Arctic Line A/S