Question 1

What is the standard mining royalty rate in Greenland?

Accepted Answer

Under the standard terms of the Mineral Licence and Safety Authority (MLSA) pursuant to Rastofloven, exploitation licences carry a gross sales royalty typically ranging between 2.5% and 5.0% of the sales value of extracted mineral products.

Question 2

Can Greenlandic corporate income tax be credited against mining royalties?

Accepted Answer

Yes. Greenland standard licence terms include a tax crediting mechanism: corporate income tax paid to the Greenlandic treasury in a given year can be credited against the calculated gross royalty, reducing the net royalty payable.

Question 3

What is a surplus royalty in Greenlandic mineral contracts?

Accepted Answer

For specific high-margin mineral extraction projects, a surplus royalty model is applied, charging a supplementary rate (e.g. 5% to 15%) on profits exceeding an agreed internal rate of return (IRR).

Question 4

Who regulates mineral licences in Greenland?

Accepted Answer

The Mineral Licence and Safety Authority (MLSA - Rastofstyrelsen) under the Government of Greenland (Naalakkersuisut) is the exclusive one-stop regulatory authority for all mineral and hydrocarbon activities.

Question 5

Are rare earth elements subject to special restrictions in Greenland?

Accepted Answer

Yes. Inatsisartut passed legislation in 2021 prohibiting preliminary investigation, exploration, and exploitation of uranium and setting a strict limit of 100 ppm uranium content on other extracted mineral deposits.

Revenue Stream	Statutory Rate	Tax Credit Mechanism	Statutory Authority
Gross Sales Royalty	2.5% - 5.0%	100% credited by CIT paid	Rastofloven § 18
Corporate Income Tax	25.0% flat	Offsets gross royalty liability	Inatsisartutlov om indkomstskat
Surplus Royalty	Project-specific (5%-15%)	Applies after hurdle IRR reached	MLSA Standard Terms

Greenland Raw Materials & Mining Royalty Calculator

⚙️ Production Value & Profitability

Fiscal Offset Breakdown

🏛️ Greenland Mining Fiscal Framework (MLSA Standard Terms)

Engr. Muhammad Shahzad

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Engr. Muhammad Shahzad