Business & Industry
Aug 1, 2017
Greenland: The Ultimate Zinc Deposit
Ironbark is currently developing three projects in Greenland, of which the Citronen zinc and lead prospection stands out by far. The Australian multinational begun to enhance the project for the exploration of the deposits on the northern areas of Greenland back in 2012, this being the largest unexplored deposit in the whole world with resources over 13 billion pounds.
The project obtained its exploration licence in December 2016, licence which is valid for 30 years, and is now on its final stage, captivating investors for the ultimate effort of finally beginning the exploration of a mine that has already been classified as being of worldwide relevancy.
Amongst the pluses of the project we find its geography, given that Greenland is an autonomous zone of the Kingdom of Denmark there is a very low sovereignty risk associated to the exploration of the ore. The localization of the mine is also extremely favourable given that it's adjacent to deep waters that will allow it to easily transport the ore both to Europe and North America.
The deposit itself is considered easy to extract, since it is located in a flat area and near the surface! The life span of the mine is another positive point, all signs point that it will be extremely wide given that the ore can be found in all directions from the original extraction site.
Ironbark highlights that this will be one of the rare ore deposits owned by a single junior company worldwide, proving an excellent opportunity for investors to jump aboard, and the fact that a mine of this dimension is still unexplored on a time when an alarming number of zinc mines are about to shut down its operations due to the extinction of its deposits (that meaning, on the middle run a reduction of the zinc availability will correspond to a rising on the prices).
Not only that, Ironbark already secured a partnership with a Chinese multinational with an EPC (Engineering, Procurement and Construction) contract, comprehending on a single contractual object the planning of the project, its construction and the purchase and assembling of the equipment, including the growth estimates for the operation at a fixed price.
The 430 million dollars investment will result on an annual extraction from 180,000 to 200,000 tons of zinc on a deposit estimated to last a lifetime, being that the operation is owned by a single company that already secured the exploration license and all the mandatory environmental certificates, which Ironbark rightfully contemplates as being its main attraction for investors.
The objectives pass by assuring the financing in the current year, preferably until September, to begin exploration in 2018 and exporting the already refined ore in 2019 on a harbour created from scratch in the deep waters adjacent to the mining facilities.
The most likely partnership, for now, would be with the Chinese state company Non Ferrous Metal Mining (NFC), one of the largest and most experienced Chinese companies that currently has a staff of over 50,000 employees and has uncountable mines, factories and metallurgical installations spread throughout the globe.
The government of Greenland is also supportive of the project, as a stable nation that guides itself under European law, although geographically located on the American continent and with Canada on its border, the national authorities have been pushing the mining of its territory through the creation of a mining school to technically habilitate its active citizens and Greenland has in its history a whole zinc mining background, although on a smaller scale.
To date Ironbark already spent 50 million dollars on the construction of its mine base camp and on the planning for the project, being confidant that up to the end of the year it will secure the full financing for the project.