The Minister of Mines warned that Donald Trump threatens to alienate Greenland’s investors

Greenland’s mines minister has warned Donald Trump’s proposed purchase of the Arctic territory could be “devastating” to international investors for its mineral reserves.

Naja Nathanielson told the Financial Times that the US president-elect’s speech and particularly his refusal to resort to violence Take control of the islandIt risks damaging its image as a stable, resource-rich democracy.

“When talking about the exclusion of military use Greenland I was very concerned about how investors would perceive Greenland, perhaps as an unstable or overcrowded democracy. That will seriously hurt the mining sector as investors don’t like uncertainty.

Some mining companies have asked the island’s government for guarantees that their licenses would remain intact “if Greenland is taken over by the US,” a person familiar with the matter said.

“Companies are looking for a reason not to invest. This can be in the category of political uncertainty.

But Nathanielson admits that’s not the right way to interpret the incoming US president’s words.

“If you cut through his speech, what I hear Trump saying is that he thinks the natural resources in Greenland should be exploited. And we totally agree with him on that,” she said.

Nathanielson, whose ministerial portfolio includes trade, commerce, justice and gender equality, said mining companies operating in Greenland share the same view and are more confused than worried.

“Everyone was waiting with bated breath to see: What is the real message there? . . . Where does it all land?” Nathanielson said.

Greenland has positioned itself as an alternative to western mining for many Rare earths And mining — a sector China dominates — has attracted the attention of U.S. officials eager to sidestep Beijing and Moscow.

Western capitals are diversifying their supply chains and ensuring they are not dependent on China or Russia for minerals used in defense production, Nathanielson said.

But this has not translated into the kind of funding and investment mining companies have to take out projects in challenging places like Greenland, Nathanielson described as a geopolitical mistake.

“I think everyone was asleep. And she needs to wake up,” she said.

The mining industry is at the center of increasing demand for Greenland. Freedom. Apart from tourism, it is seen as the best way to boost the island’s economy, allowing it to avoid receiving DKr4bn ($550mn) in annual aid from Denmark, which controls the sector.

Although he lamented Trump’s tone, Many Greenlanders looked up. For the future president, he raised the issue of the country’s independence from Denmark. But Greenland still has a lot to do on its economy, Nathanielson said.

Although several companies have licenses to extract vast amounts of resources in the Arctic state, no large-scale mining is underway, and Greenland officials and mining bosses find the lack of development disappointing.

Greenland’s remoteness, lack of infrastructure, and the short duration of mining have prevented many projects from coming to fruition.

Nathanielson Trump She said her initial interest in Greenland in 2019 had created a flow of cooperation between the Arctic state and the US State Department in the mining sector, and she hoped the latest comments would be an indication that this work will expand.

“To get these minerals from Greenland, it’s not enough to just say, ‘We need this.’ You also have to help companies get more money in those early stages where it’s very, very important,” she said.

Anglo American, the London-listed mining company, is the largest company in Greenland with a very preliminary exploration licence, which expires this year but could be renewed.

Other companies have found promising supplies of copper, oil and minerals such as gallium, but in some cases have been unable to find funding despite decades of trying.

The government in Nuuk has halted the controversial Kvanefjeld project in southern Greenland – where a Chinese company is a minority shareholder – because the land contains not only rare earths but also uranium.

Alongside regulatory challenges are logistical hurdles. Greenland has no roads connecting its cities, let alone its mineral deposits. “You also have to build the supporting infrastructure as well as the actual mine,” says Svend Hardenberg of Energy Transition Mining, developer of the Kvanefjeld project. “It is also an immature industry, so there is a shortage of skilled manpower.”

“Because China has a monopoly, America and Europe need access to rare earth elements,” Hardenberg said.

Roderick McCleary, CEO of 80 Mile, which has three projects in Greenland, said he believes Trump can close the deal.

He said: “People think Greenland is very difficult, very difficult. Then Donald Trump comes along and says Greenland is probably the most valuable piece of real estate in the world and suddenly everyone wants to invest.

“This is a change of mindset. Greenland is now on the agenda. It is a land of incredible opportunity.