Why Greenland Isn’t Chasing The Dream Of Becoming A Mining Superpower

Authored by Felicity Bradstock via OilPrice.com,

• Greenland, despite possessing vast mineral reserves and past ambitions from the U.S. to acquire it for these resources, is not interested in becoming a major mining superpower.

• The country’s minister for business and mineral resources emphasized a desire for only 5 to 10 active mines at any given time, prioritizing high environmental, social, and governance standards.

• Concerns about the environmental impact and the uncertain economic return from mining activities, particularly with an unstable market for rare earths, contribute to Greenland’s cautious approach.

Early in Donald Trump’s presidency, he announced his ambitions to acquire Greenland. In March, Trump said, “We need Greenland for international safety and security. We need it. We have to have it.” As well as stating ambitions to counter Russia’s presence in the Arctic, taking control of Greenland would put vast quantities of rare earth minerals and rare earth elements in the possession of the United States. However, Denmark quickly shot down the idea of Trump’s acquisition, saying that Greenland was not for sale. Meanwhile, Trump’s announcement led several political figures in Greenland to suggest that Greenland should be independent, rather than under the ownership of Denmark or the U.S.

International powers have long eyed Greenland for its vast mineral potential. As several countries around the world strive to undergo a green transition, the demand for critical minerals is expected to grow dramatically in the coming years. Demand for critical energy transition minerals like lithium, cobalt, and copper could increase almost fourfold by 2030, according to United Nations estimates.

At present, China dominates the global mineral mining market. According to International Energy Agency (IEA) data, China contributes around 80 percent of the world’s natural graphite and 60 percent of mined magnet rare earths. In 2024, it produced more than 60 percent of the world’s lithium, 40 percent of refined copper, and 70 percent of refined cobalt. As the U.S. looks to reduce its reliance on China for energy, critical minerals, and other goods, President Trump sees Greenland as the potential solution.

Greenland holds vast mineral reserves, including rare earth metals, coal, graphite, uranium, copper, lead, and zinc. A 2023 Geological Survey of Denmark and Greenland survey found that 25 of the 34 critical raw materials recognised by the European Commission are present in Greenland. In addition, as ice sheets melt due to climate change, Greenland’s previously hard-to-retrieve mineral reserves are expected to become more accessible.

Caroline Kennedy-Pipe, a professor of war studies and Arctic security specialist at the U.K.’s Loughborough University, explained, “The fight for infrastructure in the Arctic is incredibly important. Plus, because Greenland’s ice sheet is melting, and melting fast, those rare earth minerals will become cheaper to access. So, these are seen as long-term investments for America.”

To date, mining activity in Greenland has been limited, as investors have avoided financing mining operations due to the harsh conditions and environmental pushback from community groups. Developing the country’s mining industry would require significant funding, as well as support from local groups.

Around a decade ago, a team of geologists published a paper that warned of unrealistic expectations for Greenland’s mineral potential. It states, “Even if estimates of the quantity and quality of ore in a geological deposit are well documented… it is difficult to translate this into economic potential and even more difficult to predict a specific revenue for Greenlandic society.”

Minik Thorleif Rosing, one of the authors of the report, said that the situation remains relatively unchanged since the date of publication. “There is a misconception that Greenland will be like a new Saudi Arabia, only at the size of a small British town,” Rosing said. He blamed the uncertainty on global market conditions for rare earth metals. There has been significant pushback against mining operations, as many Greenlanders believe the cost of mining will far outweigh the benefit. It is unclear just how much of a return on investment Greenland would see from mining activities, as there is no stable market for rare earths, according to Rosing. However, many are more concerned about the environmental impact of mining in the Arctic.

In June, Naaja Nathanielsen, Greenland’s minister for business and mineral resources, said that while some mining operations are already underway in the country, there is little interest in Greenland becoming a major mining power. “For Greenland, we are not necessarily interested in becoming a really great mining country. We just really want 5 or 10 active mines at any given time,” said Nathanielsen. “We are a very small population, so for us, we don’t need the entire country to be covered in mines. We are happy with managing a few, and I think that is feasible,” she added.

Nathanielsen emphasised the “very high” environmental, social and governance (ESG) standards held by Greenland. She said, “I think the people of Greenland really support the mining industry, which is quite kind of rare when you look at other jurisdictions. But they do so because they have faith in us having a high environmental standard and taking care of local communities.” Nathanielsen went on to say that if the government compromises its environmental standards, it could lead Greenlanders to no longer support the mining industry, which could be highly detrimental for future projects.