Greenland: Kuannersuit Mine Revenues May Reduce Block Grant from Denmark

According to Greenland's Self-Rule Act, the block grant from Denmark will be reduced if Greenland makes more than DKK 75 million per year. Thus, the Kuannersuit mining project (also known as Kvanefjeld) may lead to a reduction of the block grant if the project were to be approved, KNR writes.

If Greenland makes DKK 1.5 billion per year from the mining project, the block grant from Denmark will be reduced by DKK 750 million. The Act states that the block grant should be reduced with an amount constituting half of the income stemming from raw material activities.

This year, Denmark transfered a block grant of DKK 3.9 billion to Greenland.