Greenland officials said they stripped a Chinese mining company of its license to an iron ore deposit near the capital Nuuk on Monday.
“We cannot accept that a license-holder repeatedly fails to meet agreed deadlines,” Greenland’s Resources Minister Naaja Nathanielsen said.
Nathanielsen said the government had requested the company to return all geological data, pay the remaining 1.5 million Danish crowns, and clean up the mining area.
However, the Chinese company failed to make the agreed guarantee payments, and then there was no apparent activity at the site.
London Mining got its exploitation license in 2013 and had initially planned to hire some 2,000 Chinese workers to construct the project that would eventually supply China with around 15 million metric tonnes of iron ore a year.
London Mining reported it failed to secure sufficient funding.
In 2015, General Nice, a Chinese importer of coal and iron ore, took control of the Isua mine project as London Mining went bankrupt.
In 2016, General Nice attempted to buy an abandoned naval station in Greenland from Denmark, but Copenhagen vetoed the offer because of security concerns, Reuters reported.
In 2018, Greenland rejected an offer from a Chinese state bank and a state-owned construction company to finance and build two airports in Greenland.
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