Inside the Greenland Mineral Wealth Competition

President Donald Trump said he believes the United States would gain control of Greenland, emphasizing his constant demand on the Arctic Island as a case, pointing to “economic security” as a cause. Although the autonomous Danish territory is in a hurry to say that it is not sold, its huge and mostly unused mineral resources are in high demand.

The serrated gray peaks suddenly appear before us, as the motorboat goes around cut coastal waters and dramatic fjords on the southern peak of Greenland.

“Those very high mountains, it’s mainly a gold belt,” Eldur Olafson, CEO of the mining company Amaroq Minerals.

After sailing for two hours, we walked ashore in a remote valley under Mount Nalunak, where the company breaks gold.

He is also looking for the surrounding mountain range and valleys, hunting for other valuable minerals, clicking a survey licenses covering over 10,000 square km (3 861 square miles).

“We are looking for honey, nickel and rare land,” says the Icelandic boss. “This is unexplored and still has the potential to have many large deposits.”

The main camp is a cluster of mobile buildings and bright orange accommodation tents, which live more than 100 employees, including Greenlanders, Australians and former British coal miners. From there, it climbs up the valley, and we drive a car in the gold mine, following a dark tunnel up inside the mountain.

“Look here!” He says G -Nlafson, pointing to a white quartz stitch and a thin dark line. “Gold, gold, gold. Isn’t that unusual?”

The mine, which Amaroq bought in 2015, had operated on the bigger part of the previous decade, but closed because then the falling prices of gold and high operating costs.

Amok is confident that Mina will be profitable already. And he plans to increase production this year, where he built a brand new processing plant to crush the ore and refine precious metal in gold bars.

“We can either go every month with a suitcase of gold, against a ship of 30,000 tonnes (bearing ore),” explains G -n -Olafson.

He says Greenland presents an unrivaled opportunity, as its huge mineral reserves are largely untouched.

“This can be a supplier of all the minerals that the Western world will need for decades,” adds G -Olafson. “And that’s a very unique position.”

Still, there are currently only two active mines across the island.

Greenland is a self -governing territory that is part of Denmark but controls its own natural resources.

It is endowed with the eighth the largest reserves of so-called rare elements of the Earth, which are vital for the preparation of everything-from mobile phones to batteries and electric motors. In addition, there are large quantities of other key metals, such as lithium and cobalt.

There is also oil and gas, but new drilling is forbidden, while deep sea extraction is also excluded.

Christian Keldsen, director of the Greenland Business Association, says the global “geopolitical situation is currently leading to an interest in the largest island in the world.”

He points out that China has the largest reserves in the world of rare earth metals, while the West wants to provide alternative supplies.

“You have a very strong China that sits very strongly on critical raw materials,” he says.

This led to a growing focus among Western countries to gain access to Greenland’s minerals. China also wants to get involved, but its presence is limited.

Reuters Has recently been reported that the United States was lobbing an Australian mining company so as not to sell the largest project for rare land in Greenland to potential Chinese buyers.

The Minister of Business, Trade and Raw Mendues of Greenland, Naja Natanielsen, says interest in minerals in the territory has “increased in the last five years”.

She adds: “We are used to being a hot spot for the climate crisis. We want to be part of the solution.”

100 block permits have already been granted in Greenland, where companies are looking for viable deposits. The British, Canadian and Australian mining companies are the largest holders of foreign licenses, while Americans only own one.

But there are many more steps before these sites become potential mines.

But while Greenland can sit on mineral riches, every “gold tide” continues to materialize slowly.

The economy, which has an annual GDP of just over $ 3 billion ($ 2.4 billion), is still led by the public sector and fishing. And the territory also relies on an annual subsidy of $ 600 million from Denmark.

Greenland’s politicians hope that the revenue will reduce the reading of an annual subsidy of $ 600 million from Denmark and will help increase independence efforts. But in the meantime, Greenland is making more money than tourism.

Official yields are still important for independence, says Javier Arnaut, Head of Arctic Social Sciences at the University of Greenland. “But in practice, you can see that there are very few yield licenses.”

Nathanielsen admits that although partnerships with the US and the EU are developing, “we have not yet seen large sums of money that is inflow into this sector.” She hopes that there will be three to five more in the next decade.

However, yield is not easy in Greenland because of its remote geography and time. This is the largest island in the world and 80% of it is covered with an ice sheet. It has rough mountains and there are no roads between the settlements.

“This is an Arctic terrain,” says Jacob Klyov Kelov from the geological survey of Denmark and Greenland, which maps deposits on the territory. “We have problems with the harsh conditions regarding climate and limited infrastructure. So it is quite expensive to open a mine.”

These high costs, combined with low global metals prices, detained investors.

Others blame the bureaucracy for slow growth of the sector. The territory has strict environmental provisions and requirements for social impact and permitting may take time.

Nathanielsen maintains that most communities support yield and that it raises local economies. “They (overseas miners) shop at the local store. They hire local employees. They appoint a local boat or helicopter,” she says.

Still, in the largest city to the south, Qaqortoq, the resident Heidi Morthenssen is skeptical about whether the new mines will lead to employment for the locals. “When they say they will add work, who they talk about?”

Jess Bertelsen, head of the local labor union, PEC, says many people believe that the income of yield “will leave the country” and will not benefit from Greenland. But he supports the growth of the sector. “Greenland needs more income and earn money from other ways than fishing.”

It is unclear how Trump’s most gambit in Greenland will be played. However, the prime minister in the territory said earlier this month that “we need to do business with the US” and that it is “doors open in production”.

G -n Kjeldsen of the Business Association hopes that it will be a “very necessary investment” in the sector. “On the other hand, if the uncertainty about the Trump signals is dragged for a longer period, there is a risk that it will adversely affect the investment environment.”