Greenland urges US, Europe to invest in its critical minerals, or China will

Greenland is urging the US and European nations to invest in its mining industry, cautioning that a lack of Western engagement may compel the Arctic territory to seek partnerships with China instead, says Naaja Nathanielsen, Greenland’s minister for business and mineral resources.“We want to develop our business sector and diversify it, and that requires investments from outside,” Nathanielsen said in an interview with Financial Times on Tuesday.She emphasized a preference for collaboration with European and American partners, but noted that if they do not engage, Greenland would need to consider other options, including China.Greenland, a semi-autonomous territory of Denmark, possesses substantial but remote mineral deposits, many of which contain strategic minerals like rare earths being sought after by Western powers. China currently dominates the supply of several key minerals. For rare earths alone, it accounts for 60% of the global mine supply and nearly all of the refining, making it a pseudo-monopoly.The Greenland government views the development of its mineral sector — involving as many as 40 items on the US and EU critical minerals list — as a key strategy for economic diversification. A memorandum of understanding to support the island’s mineral development with the US, signed during Donald Trump’s first presidency, is nearing expiration. Efforts to renew the agreement under President Joe Biden’s administration have been unsuccessful.Trump, since being elected for a second term, has repeatedly voiced his desire to purchase Greenland, which would give the US access to its mineral reserves.In the Financial Times interview, Nathanielsen criticized Trump’s previous statements about the US potentially taking over Greenland, describing them as “disrespectful and distasteful.” Despite such rhetoric, she noted that Chinese involvement in Greenland’s mining sector is currently minimal, with only two Chinese companies holding minority stakes in inactive projects.China has previously been looking to get involved with the Tanbreez mine project in southern Greenland, which is said to host one of the world’s largest rare earth reserves. However, it was reported by Reuters that the US and Danish governments both lobbied its owner to shun Beijing’s advances, and the project was eventually sold to New York-based Critical Metals.EU partnership toutedAmid the takeover threats by Trump, Greenland has offered to partner up with the European Union to develop its mineral resources together. According to foreign minister Vivian Motzfeldt, the island is looking to deepen its “bilateral” ties with the EU, singling out precious minerals as a key area of focus.“We want to expand our cooperation based on not only fisheries, we want to expand our cooperation on our critical minerals and energy,” Motzfeldt told Politico in an exclusive interview earlier this month. “That’s what Greenland has, and the rest of the world, our like-minded countries, need a greener future, renewable energy,” she added.The Greenlandic government, now a four-party coalition, is prioritizing development and is open to partnerships with allies sharing similar values. In her interview with Financial Times, Nathanielsen acknowledged the challenges in aligning with the evolving dynamics of Western alliances, but sees the European Union as a favorable partner, citing its demand for minerals and alignment on environmental standards.She also expressed concerns about the intentions behind US investments. “We sort of hoped that the Trump administration would be more willing to engage in dialogue with Greenland about the mineral sector development. We got a bit more than we asked for, because we have no wish to be American.”Nathanielsen share similar concerns in an interview with Reuters last week. “We have welcomed a number of investors, but we have not yet seen any concrete example of American funds being injected into Greenland’s business community,” Nathanielsen said.“There is no doubt that the dialogue with both the EU and Denmark is going smoother. This is not only the result of the noise made by the US administration, but also the result of several years of intensified cooperation,” she added.Recently, Greenland awarded its first mining license under a new code to a Danish-French consortium for the extraction of anorthosite, a mineral used in the fiberglass industry. The €150 million project in western Greenland is expected to commence construction next year. Nathanielsen told Reuters that the hope is to have the mine operational within five years. Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com