NUUK, GREENLAND — The mineral wealth on the Arctic island of Greenland is gaining global attention following U.S. President Donald Trump’s remarks about potentially taking control of the territory from Denmark, which has alarmed European allies.
In a January 12 interview on Fox News Sunday, Vice President JD Vance echoed Trump’s sentiments, stating, “There is a deal to be made in Greenland,” highlighting the island’s abundant natural resources.
Greenland’s mining industry has faced profitability challenges; however, this may be changing soon.
Full of Minerals Greenland currently has only one operational commercial mine — the White Mountain mine, located north of the capital, Nuuk. This mine derives its stark, monochrome appearance from anorthosite rock, rich in calcium deposits and various minerals.
The mine’s operator, Lumina Sustainable Materials, exports rock from Greenland’s western coastline to Asia, Europe, and North America. This rock is utilized in manufacturing products such as fiberglass, paint, fillers, cement, and polymers. Plans are underway to exploit aluminum deposits found within the anorthosite.
“Greenland is a country full of minerals. We literally have minerals available all over the place,” Bent Olsvig Jensen, Lumina’s managing director in Greenland, stated in an interview.
Despite White Mountain being the only commercial operation currently trading, numerous mining companies from across the globe are exploring and conducting feasibility studies in Greenland.
China Competition The minerals present in Greenland include significant amounts of rare earth elements like lithium and scandium, which are essential for devices such as batteries. Currently, global supply chains for these elements are dominated by China.
Trump has consistently asserted that U.S. control over Greenland is vital for “international security.” His comments have stirred political controversy in both Greenland and Denmark, yet mining companies view this as an opportunity.
“His interest in Greenland can actually help the industry gain access to further investments, which are crucial for the industry’s development in Greenland,” Jensen remarked. “I definitely welcome it, and it is important for both the industry and the political landscape in Greenland to align with Trump and the U.S.”
Not for Sale While Greenland’s government operates with a degree of autonomy, Denmark is responsible for the island’s security. Naaja Nathanielsen, Greenland’s minister for resources, reiterated the government’s long-standing position regarding Trump’s interest: open for business, but not for sale.
“We seek American investments and collaboration with the U.S. State Department, and we’ve been advocating for that for some time,” she stated.
During Trump’s first administration in 2019, Greenland signed an agreement to bolster its mining industry, where U.S. funding was allocated for direct marketing to investors globally. This agreement has recently expired, and Nathanielsen expressed the need for renewed engagement from the U.S.
Challenges Despite the widespread acknowledgment of Greenland’s mineral wealth, attracting investment in mining has been a longstanding challenge.
“For many years, we have observed reluctance in the investor environment to engage in high-risk, long-term projects. Currently, we have only one American-owned license, compared to 23 from Canada, 23 from the U.K., and about 10 from Denmark. Thus, U.S. engagement is limited at present. However, we welcome it, as there are ample opportunities available,” Nathanielsen commented.
Greenland’s government is advocating for complete independence from Denmark, and supporters believe that the island’s mineral wealth could serve as economic leverage for full statehood. However, as Ulrik Pram Gad, an analyst at the Danish Institute for International Studies in Copenhagen, noted, there is a considerable journey ahead.
“To extract minerals and finance Greenlandic self-sufficiency economically, it is essential to enhance international processing capabilities,” Gad explained. “Moreover, careful considerations must be made to ensure that mining projects benefit local communities rather than resemble a new form of imperialist extraction, which could lead to opposition from the Greenlanders.”
The potential rewards of mining are accompanied by risks. The Aappaluttoq mine, which extracted rubies and pink sapphires, ceased operations in 2023 due to the bankruptcy of Greenland Ruby, leaving $71 million in debt. The company is currently restructuring and seeking new investors to resume operations.
Covering an area of 2.1 million square kilometers, Greenland is icebound for a significant portion of the year. “Being situated in the Arctic presents logistical challenges,” Jensen of Lumina noted. “Not all of Greenland is accessible year-round, but we can plan accordingly.”
Jensen added that investors must exercise patience to realize profits, stating, “Developing a project from initial exploration to a functioning mine ready for extraction takes time, and as we say in mining, ‘Time is money.'”
