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The hype round Greenland and its abundance of minerals has lengthy been there. The huge Arctic island, hoping for independence from colonial ruler Denmark, has a easy pitch: it has large deposits of lots of the metals and uncommon earths for which the west is at present depending on China. US president-elect Donald Trump is a would-be purchaser.
The one drawback is that after many years of exercise, there’s treasured little to indicate for it. It has one open mine — producing anorthosite, largely utilized in fibreglass — which is lossmaking.
For all of the heat and light produced by Trump’s earlier proposal to purchase Greenland in 2019, when authorities in Nuuk declared they have been open to American enterprise, just one US firm holds an exploration licence on the island, in contrast with 23 every from Canada and the UK. Local weather change could also be heating up Greenland quickly, however entry to many mining areas stays difficult. “The previous 4 years have been very troublesome for mining work in Greenland,” says Roderick McIllree, govt director of 80 Mile, a UK-listed miner that has three initiatives on the island.
Most Greenlanders dream not of a US takeover however independence. For that to occur, Greenland wants its economic system to develop considerably to make up for the DKr4bn ($550mn) block grant from Denmark. And for that, it wants mining and in addition tourism to take off. Each industries share widespread issues: Greenland’s peak season is simply roughly half the yr, in any other case it’s too chilly; its infrastructure is restricted (there are greater than 50 settlements on the island, however no highway linking any two of them).
“What we are saying to the remainder of the world is there’s a possible in Greenland . . . however we will’t ship it tomorrow. And we want assist, we will’t do it on our personal,” says Jørgen Hammeken-Holm, everlasting secretary for the ministry of enterprise, commerce, mineral assets, justice and gender equality.
Mike Waltz, Trump’s incoming nationwide safety adviser, final week cited the chance that China would possibly step in forward of the US on this. There’s little signal of the Chinese language in mining, although. One firm had a licence for an iron ore mine however was stripped of it by Greenland’s authorities in 2021 as a consequence of a scarcity of exercise. One other Chinese language group is a minority shareholder in a stalled and controversial uncommon earths challenge, which the present authorities in Nuuk blocked as a result of presence of uranium within the space.
A Chinese language firm tried to construct two airports in Greenland on the finish of the 2010s however, beneath US strain, Denmark as an alternative offered the financing. Amongst large mining firms, solely Anglo-American is current in Greenland, the place it’s concerned in very early-stage exploration.
The massive query now could be whether or not Trump’s renewed curiosity in Greenland will assist unlock the wave of funding wanted for mining. Right here, opinions are cut up. McIllree describes the current media consideration as “publicity you’ll be able to’t purchase”. Nonetheless, he concedes he has labored on mining in Greenland for greater than twenty years with treasured little to indicate for it but.
80 Mile’s three initiatives — which include copper and nickel, hydrogen and helium, and oil — are doubtlessly “100-year mines” however want billions of {dollars} of funding. “It wants authorities help to get them off the bottom. The fact is it’s costly in Greenland. We want the US monetary system,” McIllree provides.
However officers in Greenland are cut up. The island’s pitch to buyers was it was the politically secure, western different to initiatives in riskier jurisdictions. Trump’s curiosity might name that into query, with one particular person accustomed to the matter saying some firms have requested about potential guarantees to guard their licences in case of a US takeover.
Hammeken-Holm says that tourism generates extra money than mining at present and is prone to in the long run too. Nuuk airport has in current months been upgraded to take worldwide flights and a brand new route linking it to New York ought to open this summer time. However excessive prices, restricted infrastructure, and a brief season all pose challenges to tourism improvement.
Like many points of the Arctic, the potential for enterprise in Greenland appears big however the actuality typically doesn’t dwell as much as the hype, with change taking a very long time. Trump’s problem shall be not simply to make controversial statements however attempt to speed up these enterprise alternatives considerably.
