Greenland, an island extremely wealthy in mineral resources, is currently treading the delicate line between a booming, yet controversial, mining industry. The island hosts two active mines and boasts 25 of the 34 minerals identified as critical raw materials by the European Commission. Yet, its extreme climate, rugged terrain and limited infrastructure pose significant obstacles in capturing this strategic potential.
The island has recently became a focus of American interests as an alternative to China’s rare earth element monopoly. Greenland’s government has no dreams of turning the semi-autonomous territory into a mining superpower. Naaja Nathanielsen, Greenland’s Minister for Business and Mineral Resources, would like to see a more considered pace of development. She reiterated that the intent is to keep “5 or 10 active mines at the most” at any one time.
Greenland’s unique environment shapes its mining strategy. The local population, around 56,000, prefers to manage a limited number of mining projects rather than a widespread mining landscape. Nathanielsen stressed, “We are a very small population. They have a very limited range. So for us, we don’t need the whole country to be covered in mines. We would be pleased with successfully managing a handful and I believe that is realistic.”
Just last week, the island’s government issued a new, 30-year mining permit. A Danish-French mining company is currently allowed to exploit anorthosite, a mineral rich in aluminum, at a site on the remote western coast of Greenland. Additionally, Critical Metals Corporation is seeking a $120 million loan from the Export-Import Bank of the United States to fund its Tanbreez rare earths mine in southern Greenland. These events underscore the increasing international attention on Greenland’s mineral bounty. In the meantime, the government has been careful to avoid a dramatic increase of its mining footprint.
Despite the challenges, many executives, including Eldur Olafsson, CEO of Greenland-focused mining company Amaroq, hold an optimistic view of the potential in Greenland. He emphasized that the island has “fantastic jurisdiction when it comes to regulation,” this too based on Nordic tenets and statutes. Olafsson asserted that the geology of Greenland is diverse, stating, “the geology is such that Greenland has traveled around the world through a geological time and gone everywhere — which means that it has an exposure to most mineral resources.”
Greenland’s commitment to strict environmental, social, and governance (ESG) standards makes it unique among other mining jurisdictions. Unlike much of the rest of the world, the industry has the overwhelming support of the people of Greenland. Nathanielsen pointed out that this support stems from faith in maintaining high environmental standards and addressing local community concerns: “I think the people of Greenland really support the mining industry… they do so because they have faith in us having a high environmental standard and taking care of local communities.”
Nathanielsen cautioned that compromising on these standards could jeopardize public support: “And if we start to fold on that, we will also lose the people’s support of this industry. For us it is really important. So, I think we have learned from the past.”
Greenland’s melting ice caps are not just an environmental concern. They are clearing paths for what some industry executives describe as a mineral gold rush. This trend might increase interest in extracting Greenland’s vast natural riches. Yet it can be a recipe for exacerbating other issues related to climate change and regional ecology.
In recent discussions about the future of Greenland, Olafsson commented on its potential path toward independence, suggesting that with support from Nordic countries and the United States, “in the end, I think Greenland will become most likely an independent state, supported by the Nordic countries and supported by the U.S., just like Iceland was.”
Greenland has huge resource potential and is currently working towards a number of advanced projects, most notably in graphite and rare earths. When it comes to mining, the government treads carefully. The citizens of Greenland hope for a future that embraces economic development along with careful environmental attention and protection.