Race for Greenland's Mineral Wealth

Race for Greenland's Mineral Wealth

January 27, 2025: Greenland’s untapped mineral wealth draws global attention as Western nations seek alternatives to China’s dominance over rare earth elements critical for electronics and renewable energy technologies. Mining firms from Canada, Australia, and Britain are exploring resources like gold, copper, nickel, and rare earth metals. Greenland is home to the eighth-largest reserves of rare earth elements globally, crucial for manufacturing electric motors, mobile devices, and batteries.

Amaroq Minerals, a key player in Greenland, is ramping up operations at the Nalunaq gold mine and exploring nearby areas for valuable deposits. Despite vast reserves, only two active mines exist on the island due to challenges like Greenland’s harsh Arctic terrain, remote geography, and high operational costs. Permitting processes, strict environmental regulations, and limited infrastructure further slow progress.

China’s control over the global supply chain for rare earth elements has intensified Western interest in Greenland. Recent reports indicate that the U.S. intervened to prevent Chinese firms from acquiring one of Greenland’s most significant rare earth projects. While Western mining firms hold most exploration licenses, U.S. companies account for just one.

Greenland’s government sees mining as a potential revenue stream to reduce reliance on Denmark’s $600 million annual subsidy, a key step toward independence. However, local skepticism persists. Some residents and labor unions doubt whether mining profits will benefit Greenland’s economy or workforce, with concerns that foreign companies may not prioritize local hiring.

Despite challenges, Greenland’s leaders remain optimistic. They hope increased investment will lead to more operating mines within the next decade. The geopolitical stakes are high as the U.S., EU, and China vie for influence in this resource-rich territory.

Greenland’s mineral wealth could reshape the global resource market while transforming the Arctic economy by balancing environmental concerns, economic aspirations, and geopolitical tensions. However, realizing this potential will require overcoming logistical, political, and social hurdles.