Greenland to EU: invest in our minerals or China will

The EU and US are not the only options

Greenland’s rich mineral deposits have been in the news a lot recently. Now its minister for business and mineral resources, Naaja Nathanielsen, is turning up the heat. In an interview with the Financial Times, she urged the US and European nations to step up their investments, warning that a lack of Western commitment may compel the territory to seek partnerships with China instead.

“We want to develop our business sector and diversify it, and that requires investments from outside,” according to the minister. Her preference goes towards European and American partners, but noted that if they do not engage, Greenland would need to consider other options, including China.

Substantial but remote mineral deposits

Greenland is a semi-autonomous territory of Denmark. Its substantial but remote mineral deposits contain strategic minerals such as rare earths being sought after by Western business. 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. It already has small but strategic investment in Greenland.

A memorandum of understanding to support the island’s mineral development with the US, signed during Donald Trump’s first presidency, is nearing expiration. Nathanielsen noted 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.

“No wish to be American”

She also expressed concerns about the baggage that could come with 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.”

(Michael Leahy. Source: Mining.com Photo: Mikhail Nilov/Pexeles)