The mineral wealth on the Arctic island of Greenland is in the global spotlight after U.S. President Donald Trump said he wants to take control of the territory from Denmark, prompting alarm from European allies.
Trump's words were echoed in a January 12 interview on "Fox News Sunday" by Vice President JD Vance, who said, "There is a deal to be made in Greenland," and that the island has "a lot of great natural resources."
Until now, Greenland's mining industry has struggled to turn a profit, but could that be about to change?
'Full of minerals'
Greenland currently has only one active commercial mine — White Mountain —located north of the capital, Nuuk, and gets its stark, monochrome color from anorthosite rock, which is rich in calcium deposits and other minerals.
The mine's operator, Lumina Sustainable Materials, ships the rock from Greenland's western coastline to Asia, Europe and North America, where it is used to make a variety of products such as fiberglass, paint, fillers, cement and polymers. Efforts are under way to exploit aluminum deposits within the anorthosite.
"Greenland is a country full of minerals. We have, literally, minerals available all over the place," Bent Olsvig Jensen, Lumina's managing director in Greenland, told VOA in an interview.
Dozens of other mining companies from around the world are conducting exploration and feasibility studies across Greenland, although White Mountain remains the only commercial operation currently trading.
China competition
The minerals include plentiful rare earth elements such as lithium and scandium, which are critical for devices such as batteries. Global supply chains for those elements are currently dominated by China.
Trump has repeatedly said that U.S. control of Greenland is necessary for "international security." His comments caused a political storm in Greenland and Denmark, but mining companies see an opportunity.
"His interest in Greenland can actually help the industry get access to further investment, which is needed for the industry to develop in Greenland," Jensen said. "So, yes, I definitely welcome it. And I think it's important that both from the industry side but also from the political side in Greenland that we position ourselves towards Trump and the U.S."
'Not for sale'
Greenland's government is largely autonomous, although Denmark is responsible for the island's security.
Naaja Nathanielsen, Greenland's minister for resources, emphasized the government's long-held response to Trump's interest: Open for business, but not for sale.
"We do want American investments. We do want collaboration with the U.S. State Department, and we've been trying to advocate for that for some time," she told VOA.
Greenland signed a deal with Trump during his first administration in 2019 to boost the mining industry.
"The U.S. funded our direct marketing towards investors all over the world, and this agreement has just come to its end. So we've been trying to … get engagement from the U.S. for some time now in order to renew this deal," Nathanielsen said.
Challenges
Despite widespread recognition of Greenland's mineral wealth, attracting investment in mining has been a long-term problem.
"For many years now, we have seen that there has been some hesitance in the investor environment to engage in high-risk, long-term projects. We only have one American-owned license at the moment. In comparison, we have 23 from Canada, 23 from the U.K. and about 10 from Denmark. So, it's not an area where you see a lot of U.S. engagement as of now. Of course we welcome it, and there's plenty of opportunity," Nathanielsen said.
Greenland's government is pushing for full independence from Denmark. Supporters hope the island's mineral wealth could one day provide the economic foundation for full statehood. But there's a long way to go, said Ulrik Pram Gad, an analyst at the Danish Institute for International Studies in Copenhagen.
"If you want minerals out of the ground and financing Greenlandic self-sufficiency economically, then you will need to have the uptake in the international processing going," Gad told VOA.
"And then, probably you'll have to think very closely about how to make sure that these mining projects benefit people who live close to them, rather than being a new version of imperialist extraction. Because then, the Greenlanders might not want it in the end," he explained.
The risk doesn't always end in reward. Rubies and pink sapphires were extracted at the Aappaluttoq mine until 2023, when its operator, Greenland Ruby, went bankrupt, $71 million in debt. The company is restructuring and seeking new investors, with a goal of restarting operations.
Greenland's 2.1 million square kilometers of land is icebound for much of the year.
"Obviously, we are in the middle of the Arctic, so there are some logistical challenges," Jensen of Lumina said. "Not all of Greenland is open all year round. However, that is something that we can plan our way out of."
Jensen added that investors must have patience to make a profit.
"It takes time to develop a project from the early-stage exploration until you actually have a mine where you can extract and start selling. And as we all say in mining, 'Time is money.'"
