Greenland’s Rare Earths Spark Global Scramble
Greenland is facing a unique opportunity to diversify its economy, which is heavily dependent on the public sector, fishing exports, and substantial subsidies from Denmark. With a current economy valued at $3 billion (£2.3 billion), leaders are eyeing the potential of tourism and mining sectors for future growth.
Future of Mining in Greenland
According to Greenland’s Minister of Mineral Resources, Nathanielsen, the mining sector could play a significant role in the country’s economic plan. However, the process of developing mining operations is slow. He predicts that Greenland could have three to five mines established within the next decade.
Challenges in Mining Operations
Mining in Greenland is fraught with difficulties due to its remote geography and harsh environmental conditions. Key challenges include:
- Mountainous terrain and cold climate
- Limited infrastructure
- Small available workforce
- Strict environmental regulations
Currently, only nine companies hold commercial mining permits, and only two active mines are operating. This highlights the strict regulatory environment surrounding mining activities in Greenland.
Notable Mining Activity
One of the notable companies in the region, Lumina Sustainable Materials, is contributing to Greenland’s mining landscape. Located above the Arctic Circle on the west coast, Lumina exports anorthosite, a mineral used in various applications such as e-glass and cement, as well as for astronaut training.
Managing director Bent Olsvig Jensen shares that exports are limited by seasonal challenges. The products are processed and stored during the winter months, with shipments possible for only seven months of the year. Jensen adds that logistical operations are another hurdle: “Transport involves boats or helicopters, especially as winter approaches. We need to bring everything in advance, including basic supplies like shampoo and toothpaste.”
As Greenland seeks to tap into its mining potential, overcoming logistical and environmental obstacles will be crucial for the country’s next phase of economic development.
