Levels of investment into Greenlandic mining are falling due to disadvantageous policies, according to a survey by Canadian think tank Fraser Institute, reports arcticjournal.com. PHOTO: EUROPEAN ENVIRONMENT AGENCY
Levels of investment into Greenlandic mining are falling due to disadvantageous policies, according to a survey by Canadian think tank Fraser Institute, reports arcticjournal.com. PHOTO: EUROPEAN ENVIRONMENT AGENCY.

Greenland’s mining policies discourage investment

02-04-2014

by Janus á Ryggi


Levels of investment into mining are falling due to disadvantageous policies, according to a survey by Canadian think tank Fraser Institute, reports arcticjournal.com.

690 companies answered questions about the influence of policy factors on investment choices. The survey which is conducted on an annual basis is used to form a “policy perception index” on the basis of answers submitted. The focus is on policy factors excluding both financial and mining potentials otherwise.

Policy related issues include uncertainties about environmental regulations, protected areas, infrastructure, political stability and labor regulations. In total Greenland got 75.3 points out of a possible100 points. This accounts for a decline of 9 places from last year, putting Greenland on the 23rd place in the world to do business.

Still in the top 25 percent

However Greenland is still within the top 25 % of places to do business, with Sweden, Finland and Alberta, Canada on top. But the down ranking poses a challenge given the current business climate, as demands for minerals have declined, an outcome of the global economic crisis. This means that countries in the top 25 % have to compete more fiercely for potential investors surrounding the promised Greenlandic mining adventure with a more sober tone, concludes the arctic journal.


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