Mining prospects in Greenland remain an elusive reality
A tantalizing treasure trove of minerals hides beneath Greenland's icy expanse, yet the path to unlocking this potential is paved with monumental challenges. This Arctic island's mineral wealth holds monumental implications for its independence from Denmark and its environmental future.
Getting Gold: A Bumpy Road
To find its first gold nugget, Amaroq needed to build a port and housing, fix up a road, and ship in equipment. It's no cakewalk setting up a business in frigid Greenland, Eldur Olafsson, the man running the Canadian mining company, told the media.
A global hot spot for resource hunger
Greenland isn't the only region that sparkles with mineral riches. Places like Ukraine and the seabeds that numerous firms desire have become the focus of significant geopolitical struggles and industrial aspirations.
On the path to sovereignty
Greenland remains mostly untouched, with its minerals seen as a launchpad for self-rule, a goal endorsed by over half of its 57,000 residents. Donald Trump's expressed interest in taking over the Danish autonomous territory only served to bolster islanders' support for independence. The journey to self-governance has been a hot topic leading up to Greenland's March 11 legislative elections.
Pocketing Profit from the Depths
The minerals dug from Greenland's soil would likely bring in enough income to replace Denmark's $650 million annual subsidies. The underground wealth could make Greenland a major player in the global mining industry, according to Thomas Varming, a geophysicist and consultant at the Geological Survey of Denmark and Greenland (GEUS). The treasured minerals inside Greenland could help power the green revolution: lithium for batteries, graphite for strong magnets, all valuable components in wind turbines and electric vehicles.
Mere Moolah or Much More?
However, for those minerals to become Greenland's cash cow, the price of raw materials must climb, because at the moment, it's not profitable enough to extract them. Eighty percent of Greenland is under ice, which means extreme weather, little infrastructure, and hefty environmental regulations all increase operating costs, making competitors like mining powerhouse China an attractive alternative.
Setting Boundaries
"Nothing's come to fruition, and there's simply not been a business case," an economist said. Greenland Ruby went out of business last year. Developing minerals is a slow-moving business. It can take a whopping 16 years to get a mine up and running, and during that timeframe, money is spent, but not earned in large quantities. Naaja Nathanielsen, Greenland's Minister for Business and Mineral Resources, said that eight companies will have operating licenses by the end of the year, but even if that is the case, it doesn't necessarily mean the same number of mines will be operational.
Footnotes
- Greenland might not be as economically viable as mining companies claim
- Mining in the Arctic – exploring rare-earth metals
- Environmental concerns about the greenlandic mining sector
- The buried treasure of Greenland, worth trillions of dollars
- The geopolitics of the Arctic
Tags
- The expressed interest of Donald Trump in acquiring Greenland's autonomous territory has served to bolster islanders' support for independence, which is a pressing topic ahead of Greenland's March 11 legislative elections.
- Greenland's mineral wealth could make it a major player in the global mining industry, potentially replacing Denmark's $650 million annual subsidies.
- For Amaroq, establishing a business in frigid Greenland required building a port, housing, fixing up a road, and shipping in equipment, but it's no ordinary task.
- Places like Ukraine and the seabeds that numerous firms desire have become the focus of significant geopolitical struggles and industrial aspirations, similar to Greenland.
- The treasured minerals inside Greenland could help power the green revolution, providing lithium for batteries and graphite for strong magnets, useful components in wind turbines and electric vehicles.
- Despite numerous companies holding operating licenses, it doesn't necessarily mean the same number of mines will be operational, as developing minerals is a slow-moving business, taking up to 16 years to get a mine up and running.
- Despite Greenland's rich mineral resources, the environmental concerns and high operating costs make competitors like mining powerhouse China an attractive alternative.
