NUUK, Greenland — The past weeks have brought Greenland back into the spotlight. This attention provides an occasion to highlight business opportunities in our country. We are a highly skilled and rules-based market economy, and our strategic location is vital for North Atlantic maritime, aviation and space-based activities. We invite more American businesses to engage in the vast potential of our economy.
Rare earth elements are in abundance in Greenland and play a decisive role in the development of electric motors and components used in batteries and solar panels.
Greenland possesses 39 of the 50 minerals that the United States has classified as critical to national security and economic stability. These minerals, which include rare earth elements as well as copper, zinc and nickel, are essential to modern technology.
Globally, the mining market for rare earth elements is dominated by China, which accounts for about two-thirds of the world’s production. This dominance creates a strategic vulnerability for many countries. Greenland can be a solution to this problem by diversifying the sources of these minerals.
Greenland is part of the Kingdom of Denmark, but has its own government and parliament and full jurisdiction over our many natural resources.
There exists a general political consensus in favor of developing our mineral sector. The one exception is the mining of uranium, which is banned by law. Bilateral and multilateral partnerships are essential for the further development of the country’s many attractive mineral projects.
The big obstacle to development of Greenland’s mineral resources is a lack of capital. Mining is slow business. The time frame from the early stages of exploration to the actual shipment of minerals can stretch over more than two decades, on average 16 years. This requires capital that is willing to commit to long-term investments at a high risk.
At present, we are asking private investors to bear this burden alone. We must find solutions to bridge the gap between capital, political ambitions and industry needs. If not, we risk that the minerals stay in the ground.
So, Greenland is asking mineral-importing countries to lend these mining projects a helping hand, for our mutual benefit.
We have joined an international collaboration between mineral importing and exporting countries that aims to ensure a stable and responsible supply of critical minerals. In this partnership, we have found the United States to be a constructive and supportive companion.
Greenland has been collaborating with the U.S. State Department for several years to provide new knowledge about our critical minerals. The latest agreement between our countries was signed in 2019, halfway through the first Trump administration. This agreement included a mapping campaign to investigate the potential for mining graphite; funds to carry out a direct marketing campaign aimed at relevant investors and major mining companies; and sharing know-how.
Greenland has high hopes of signing a new agreement with the United States as soon as possible. We are searching for ways to increase investments in our mining sector.
Instruments such as direct investments, direct loans, loan guarantees or access to development banks would be of massive importance to help the projects get off the ground. Investments in infrastructure connected to the projects could also be of great value and help relieve some of the pressure in the first difficult years of a mining project’s lifespan. Often a project will need roads and a harbor, as the seaways are our primary means of transportation.
At the moment, companies in Canada and Britain own the most mining licenses in Greenland. They each hold 23 licenses. The United States holds just one. I am sure this picture can change. There are existing, upcoming and as yet unknown possibilities available for investments.
As our prime minister has stated clearly, Greenland belongs to the people of Greenland. We do not want to be part of the United States. We are not Danes, nor Americans. But we see ample opportunities to make a deal that could benefit both of our countries. The potential for developing the Greenlandic economy is enormous. We have high environmental standards, we have sound regulations that include public hearings and local involvement, and we have an amazing geological resource. And we invite the United States to join us with much more business cooperation.
