C O M P A N Y O V E R V I E W
True North Gems Partnerships Provide Pivot Role in True North Gems’ Bid for Greenland Mining
True North Gems is creating a legacy of social responsibility through key partnerships and a steady commitment to sharing the benefits of its business with the local community Written by: Robert Spence
Produced by: Bobby Meehan
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TRUE NORTH GEMS
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reenland is home to some of the most pure sapphire and ruby gems in the world. The country, which has notoriously been hesitant to allow mining activities in the past, recently awarded an exploration permit to True North Gems – a junior exploration company based in Canada. The company plans to not only succeed in finding profitable gems but make a positive impact in the local community as well. Through key partnerships and a steady commitment to sharing the benefits of its business, True North Gems is striving to become the 4
January 2015
world’s premier producer of Rubies and Pink Sapphires by creating a legacy of social responsibility. Partnership with LNS Greenland In March, True North Gems was awarded a 30-year mining permit for the Aappaluttoq Ruby deposit in Southwest Greenland. The mining project, which has an initial mine life of nine years, will range from an open-pit mine to a gemstone grading and processing facility. To finance the infrastructure costs, the company needed to secure a financial partner. “We wanted to engage with
MINING
someone who had an interest in focusing on the quality of the ruby- and sapphire ore, not just the quantity,” says Bent Jensen, General Manager of the Aappaluttoq project. “Normally, you want to focus on the volume and get the most out of the ground. With us, that’s not the case. We want to protect the mineral ore as much as possible.” The company set off in search of an investor with the same mindset, experience, and financial backing to fit its needs, and the Leonhard Nilsen and Sonner AS Group (LNS) had all the attributes.
“We wanted to engage with an operator that would focus on the motive. We quickly came to the conclusion we needed to get an operator who would also be an investor,” says Jensen. “That’s why they’re interesting. They have the experience building and operating mines, the financial backing we need, and they were initially involved in the gold mining here in Greenland. So they have a relationship with the community.” True North Gems and LNS Group through LNS Greenland signed a deal for the latter to invest a total of $34 million into the project through w w w. t r u e n o r t h g e m s . c o m
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airgreenland.com
We know the drill
With decades of experience acquired from Arctic operations, Air Greenland is your reliable and dynamic partner for exploration. You will benefit from the fact that we are part of the Greenlandic society. We have the advantage of a broad network. We know the local requirements and we have an infrastructure in the form of hangars and aircraft all over the country. We aim to provide a high level of service and this means that every single job is specifically tailored to suit the customer’s requirements.
Our 12 robust AS-350 helicopters can handle almost any task. It is the ideal helicopter for sling operations with our experienced and competent long-line sling pilots. Our 8 Bell 212s with their versatile and spacious cabins, are effective in mobilizing your exploration camp. Our Dash 7s are very flexible combi/cargo aircraft that can meet all passenger and cargo requirements. With its unparalleled STOL capability, it matches the short runways all over Greenland and it is capable of landing on frozen lakes and other simple runways. We are simply your sustainable choice in Greenland. You just have to ask.
Air Greenland Charter, Tel. +299 34 34 34, e-mail: glcharter@airgreenland.gl, www.airgreenland.com/charter
TRUE NORTH GEMS
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mine infrastructure and capital loan. The deal included: • Building a port. • Building a complete and modern camp for approx. 48 workers. • Building Fuel depot, Explosive Depot, Heli-pad and workshop. • Building a Process Plant. • Building approx. 8.5 km of roads to tie all facilities together. • The completion of all infrastructure, which will enable planned production to commence in 2015. • Once construction is completed, LNSG will be in charge of the daily operation of the mine-site.
SUPPLIER PROFILE
AIR GREENLAND
Greenland’s national airline Grønlandsfly was founded in 1960. The company changed its name to Air Greenland in 2002 and has undergone rapid development during the last 50 years: From seaplanes to jet planes; and from helicopter services to scheduled services with fixed-wing aircraft. Then, as now, Air Greenland operates in Arctic airspace, which presents a unique range of challenges. Website: www.airgreenland.com
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OIL SUPPLY COMPANY FOR ALL OF GREENLAND We supply oil to mining and oil industries
Contacts Energy Manager Tage Lindegaard tal@kni.gl
Logistic Manager Niels Chemnitz niz@kni.gl
All types of liquid petroleum products TNG_polaroil_promo_196x137mm.indd 1
P.O. BOX 3030 ∙ 3911 SISIMIUT ∙ GREENLAND PHONE: +299 86 24 44 ∙ FAX: +299 86 23 96
11/11/14 15.10
SECURITY PROVIDER TO TRUE NORTH GEMS GREENLAND
Contact: Lars.Andersen@gl.issworld.com Phone: +299 556 450
SECURITY SERVICES
At ISS, we believe that great service comes from motivated employees, who understand your purpose and empathise with your needs.
TRUE NORTH GEMS
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In return, LNS will receive 7 percent initial ownership in the Greenlandic company True North Gems Greenland (TNGG) and upon completion of the infrastructure and reaching operational status LNS will have earned the right to a further 20 percent ownership. Bringing their total ownership to 27 percent. “We had other interesting investors but we chose LNS because we saw the Group as the ideal partner for the project. At the end of the day, we wanted what was best for the not only the project, but also the community” says Jensen. “We see it as a very strong joint venture.”
“If you look at our social impact assessment report, we raise the possibility of hiring local people right from the start,” says Jensen. “This is a decision we made a long time ago as we wanted to engage with the local community to make sure they benefit from this project. When we have a mandate we strive to adhere to it.” For the project, the company has planned to hire roughly 80 workers of which the company has committed to ensure that at least 75% of these will be local employees in which they would train and implement in various functions of the operation. According to Jensen, after initiating the Hearing Process, Community involvement receiving exploitation permitting True North Gems has completed and approvals of Exploitationthe Impact Benefit Agreement (IBA) and Abandonment Plans from negotiations and all parties have the Greenland government, executed a ground breaking accord. the company had received 300 The Company has also finalized the unsolicited applications from the subsequent operating and closure local community. plan for the Aappaluttoq Ruby “We couldn’t believe it. Over 300 deposit. As part of its agreement, people applied for positions within the company plans to engage with our company all on their own. I think the local community and provide the community is starting to trust us training and economic benefits from and our commitment.” the project. In regards to training, the company w w w. t r u e n o r t h g e m s . c o m
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quickly realized most of the community had already been trained in the mining industry. “In 2009, the Government opened a mining school. The school is responsible for running a training program called Common Core. Over 300 people have passed the course. We quickly realized there are a lot of people who already have the skill sets needed,” says Jensen. Living up to their promises To further enhance the community, True North Gems is developing
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a local recruitment strategy which focuses on pre-employment, recruiting and employee retention and employee development initiatives. The company is also planning to launch an array of cultural awareness, community wellbeing and health and safety programs in an effort to address local issues. In addition, the company is working with the local community to minimize any negative environmental impacts of the project. With pivotal partnerships in With a 30 year proven track record in the Artic, Ramboll is the region’s leading consultancy. As a strategic partner to customers in the building, transport, oil & gas, energy, mining and society building sectors, we deliver optimised solutions that are environmentally and socially responsible. www.ramboll.com/arctic
meeting arctic development challenges (delivering sustainable solutions)
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Vancouver, British Columbia
place, True North Gems is building the platform for a successful mining operation through trust and integrity. According to Jensen, by building relationships through trust and open communication, True North Gems is working to provide social, cultural and community support, which will benefit both the community and the company. “We’ve already hired our first set of local-based employees. The people of Greenland can now see we live up to our promises.”
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TRUE NORTH GEMS Suite 3114, Four Bentall Centre 1055 Dunsmuir Street Vancouver, British Columbia, Canada V7X1G4 1.800.399.8055 www.truenorthgems.com