Greenland, the world's largest island, stands at the cusp of transformation as it seeks to leverage its vast mineral reserves. Covering 80% of its surface with a formidable ice sheet, Greenland harbors significant deposits of rare earth elements, vital for modern technologies such as mobile phones, batteries, and electric motors. With the eighth-largest reserves of these elements globally, alongside deposits of gold, copper, and nickel, Greenland is a focal point for nations eager to secure access to critical resources. Presently, only two active mines operate across the island, while its economy remains predominantly driven by the public sector and fishing, with a GDP slightly exceeding $3 billion. The island relies on an annual $600 million subsidy from Denmark, which Greenland aims to reduce through increased mining revenues.
The path to harnessing Greenland's mineral wealth is fraught with challenges due to its remote geography and harsh weather conditions. However, the global geopolitical landscape has intensified interest in Greenland’s resources. According to Christian Kjeldsen, director of Greenland's Business Association, this geopolitical situation is a key driver of international attention. Western nations, including the United States, are particularly keen to secure access to Greenland’s minerals amid strategic competition. Although China has shown interest as well, its presence on the island remains limited.
"You have a very strong China sitting very heavily on the critical raw materials."
Yet, amidst these international dynamics, Greenland's local stakeholders emphasize their aspiration to become significant contributors to global solutions. Naaja Nathanielsen, Greenland's Minister for Business, Trade and Raw Materials, underscores this vision:
"We're used to being a hotspot for the climate crisis. We want to be a part of the solution."
Mining companies like Amaroq Minerals are spearheading efforts to tap into Greenland’s mineral potential. The company has been actively drilling for gold in a remote valley beneath Nalunaq mountain. This year, Amaroq Minerals plans to increase production and has constructed a new processing plant to refine the extracted gold into bars.
Eldur Olafsson, a key figure in the mining industry, envisions Greenland as a cornerstone for Western resource supply:
"It can be the supplier of all the minerals the Western world will need for decades."
"And that is a very unique position."
Olafsson highlights the untapped potential in Greenland's terrain:
"We're looking for copper, nickel, and rare earths."
"This is uncharted, and still has the potential to have multiple big deposits."
The logistical challenges of mining in Greenland are notable. Olafsson elaborates on the practicalities of gold extraction:
"We can either walk off site every month with a suitcase of gold, versus a 30,000 tonne ship."
Greenland's politicians remain hopeful that mining revenues will bolster the country's independence efforts and reduce reliance on Denmark. The involvement of overseas miners is also seen as beneficial to the local economy, as noted by Nathanielsen:
"They [overseas miners] are shopping in the local shop. They're employing local employees. They're chartering a local boat or helicopter."
Jess Berthelsen, head of the local labor union SIK, echoes this sentiment:
"Greenland needs more income and to earn money from other ways than fishing."
However, despite these optimistic projections, challenges persist. Javier Arnaut from Greenland University points out the scarcity of mining licenses:
"But in practical terms, you can see that there are very few mining licenses awarded."
Nathanielsen admits that substantial financial investment is still lacking:
"we still have not seen large amounts of money flowing into this sector."
Despite these hurdles, the allure of Greenland’s mineral wealth continues to attract global attention. Eldur Olafsson captures this potential vividly:
"Those very high pointy mountains, it's basically a gold belt."
Greenland's journey towards economic diversification through mining signifies a pivotal moment in its history. As it navigates international interests and logistical challenges, the island remains steadfast in its pursuit of becoming a vital player in global mineral supply chains.