AT THE CROSSROADS - MINING POLICY IN GREENLAND

Despite formidable physical barriers, mining has taken place in Greenland for more than 100 years. Initially it was by royal concession but without a formal regulatory framework; later there were a few guiding principles laid down by law and elaborated administratively to suit the occasion. One previous attempt had been made to devise a policy that would attract investment, but the resulting mining legislation did not seem to have served this purpose. A policy review initiated in 1989 as a result of a growing need for alternatives to the ailing Greenlandic fishing industry recently resulted in the enactment of new mining and tax legislation. The new Mining Act is the first step on the road towards development of Greenland's resources. The real test, however, will come when one or more projects enter the development phase. Then the management of the impact of these projects and the revenues they generate will be central to a successful mining policy.