One of the winners would be Greenland’s mining sector, which is poised for a comeback. Their local government has been diligently trying to lure new mining companies to the region. Today, nine companies have commercial mining permits in Greenland. Expectations are increasing that new mines will be opened up in short order. According to Malene Vahl Rasmussen, the Mayor of Kujalleq Municipality, three mines will be in operation within two to four years. This announcement comes on the heels of a larger, renewed optimism that has swept across the community lately.
Today, Greenland has two active mines. Operations industry leaders directly connected to the operations underscore that expanding these operations is key to spurring the local economy. This is because mining activity booms over the winter months. When the fjords are frozen over, moving supplies and materials is a much easier task. Bent Olsvig Jensen, managing director of a mining company, explains that during winter, they stockpile essential supplies for six months to ensure operations can continue efficiently.
“When we get close to the winter, we need to get everything on site for the next six months, right down to shampoo and toothpaste.” – Bent Olsvig Jensen
There are about 6,000 people living in the region of South Greenland. In addition to living in a dozen small towns and scattered villages, they operate around 25 sheep stations. The local government is pro-mining and recognizes the potential for diversification beyond its heavy reliance on public sector employment and fishing exports. This ambitious vision serves the overarching purpose of continuing to make Greenland’s economy more resilient. It aims to decrease its dependence on subsidies from the home country of Denmark.
“By attracting mining companies back again, I hope it will bring better work opportunities for the local people, not just the cleaning jobs and the mechanics,” says Rasmussen, expressing her goals for the region’s workforce.
Among those companies are Eclipse Metals, Neo and Alba Resources, all of which have shown interest in exploiting Greenland’s rich mineral resources. The region is home to one of the world’s largest deposits of rare earth elements at Kuannersuit, or Kvanefjeld. Now, lawsuits are adding complications to the site’s planned development. A related arbitration case on this matter was recently dismissed. Nonetheless, the implicated firm is currently sword-dueling with Greenland’s government by pursuing multiple, overlapping legal channels to challenge it.
Even with these challenges, Jensen is hopeful for a positive future in Greenland’s mining industry. He notes the logistical hurdles faced by mining companies, particularly regarding transportation:
“We can only export our products seven months a year. It can only happen by boat or helicopter.” – Bent Olsvig Jensen
This reality highlights the specific challenges that companies need to address when working in an operating environment as remote as this. With decisive leadership and a focus on diversifying the economy, Greenland does seemingly have an opportunity to increase its mining capacity far beyond what it has now.
The government’s hope is that, in the next decade, three to five new mines will be up and running. This expansion is extremely important for meeting the skyrocketing global demand for rare earth minerals. Additionally, it provides lasting green career pathways for the people who live there.
In addition to sharing its knowledge by collaborating with others, Lumina Sustainable Materials directly helps shape the sector primarily through exporting anorthosite. This flexible material has uses in e-glass, cement baking, and even astronaut training facilities. These types of efforts shine a light on the opportunity of Greenland’s emerging mining sector to anchor much more widespread economic development.
Environmental concerns and lawsuits loom over Greenland as it determines how to move forward. Despite all this, its leaders are committed to creating a friendly climate for mining investment. After all, they are responsible for creating a competitive, vibrant economy that benefits all residents. In doing so, they’ll meet the skyrocketing global demand for essential minerals.