Greenland's mining future: Australian firm pushes for change
The Australian mining company, Energy Transition Minerals (ETM), has appealed to the authorities in Greenland to ease regulations on uranium mining, according to a report by Reuters on Tuesday. The company hopes the new local government will lift existing restrictions.
The appeal is linked to the parliamentary elections scheduled for 11 March. The results of these elections will determine the composition of the new government in Greenland, an autonomous territory under Danish rule.
They want to overturn uranium mining restrictions
ETM's management emphasises that Kvanefjeld is one of the three largest rare-earth metal deposits globally outside China, capable of supplying up to 15% of the world's demand for components used in consumer electronics and weapons production. It is estimated that Kvanefjeld is also the world's sixth-largest uranium deposit.
The Australian mining company, which holds the licence for the Kvanefjeld deposits, hopes the new government will repeal the ban on uranium mining that has been in place for four years. After the 2021 elections, the Inuit Ataqatigiit (IA) party, which emerged victorious, halted mining at Kvanefjeld due to ecological concerns and its proximity to populated areas. A law was enacted at that time, prohibiting mining from deposits with uranium content exceeding 100 ppm (parts per million, in this case, grams per tonne). Moreover, the mine is located near a UNESCO World Heritage site and only a few kilometres from the town of Narsaq.
Currently, the Greenlandic government is functioning with limited capacity due to the imminent elections. The ruling IA party upholds the decisions concerning mining at Kvanefjeld. Meanwhile, the Siumut party, the ruling coalition partner, which did not support the restrictions in 2021, has not yet stated its position. However, Reuters noted that the group's statute includes a clause allowing for the development of mines. The agency also highlighted that mining at Kvanefjeld is supported by, among others, the head of Greenland's largest trade union, SIK.
ETM, which has already invested about £110 million in the project, has initiated arbitration proceedings and is seeking compensation from authorities in Greenland and Denmark.
Trump interested in Greenland
Donald Trump has expressed interest in controlling Greenland since the end of 2024, considering it a national security matter. Danish Prime Minister Mette Frederiksen emphasised that decisions about the island's future belong to its residents. According to "Politico," Trump sees potential benefits for American businesses in Greenland's resources.
NATO countries are holding talks about possibly deploying troops to Greenland, reports "The Telegraph." This is in response to the threats made by Donald Trump, who is considering the use of US military forces to seize the Danish island. Germany and other European countries are discussing how to respond to potential further actions by the American president.
The Danes plan to invest £1.2 billion in new inspection ships, drones, and sled dog patrols to enhance Greenland's security. Additionally, the airport's modernisation will allow operations of F-35 fighters.
