Greenland elections could shift uranium mining policies
The Australian mining company Energy Transition Minerals (ETM) has appealed to the authorities in Greenland to liberalize the regulations concerning uranium mining, Reuters reported on Tuesday. The company hopes the newly elected government will revoke the existing restrictions.
This appeal is connected to the parliamentary elections scheduled for March 11. The outcome of these elections will determine the makeup of Greenland's new government, which is an autonomous territory under Denmark.
They want to revoke uranium mining restrictions
The management of ETM emphasizes that Kvanefjeld is one of the three largest rare-earth metal deposits in the world outside of China. It could supply up to 15% of the global demand for components used in consumer electronics and weapons. Kvanefjeld is also considered the sixth-largest uranium deposit in the world.
The Australian mining company, which holds the license for the Kvanefjeld deposits, hopes that the new government will repeal the ban on uranium mining that has been in place for four years. This ban was enacted after the 2021 elections when the Inuit Ataqatigiit (IA) party, which won, halted mining at Kvanefjeld due to ecological concerns and the site's proximity to populated areas. At that time, a law was adopted banning mining from deposits where the uranium content exceeds 100 ppm (parts per million, in this case, grams per ton). Additionally, it was noted that the mine is close to a UNESCO World Heritage site and only a few miles from the town of Narsaq.
Currently, due to the upcoming elections, the government of Greenland is operating with limited powers. The ruling IA party maintains the decisions regarding mining at Kvanefjeld. The Siumut party, a partner in the ruling coalition and which did not support the restrictions in 2021, has yet to take a stance on the matter. However, Reuters noted that the party's statute includes a provision for the possibility of developing 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 $138 million in the project, has initiated arbitration proceedings and is demanding compensation from the 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 issue. Danish Prime Minister Mette Frederiksen emphasized that decisions about the island's future are up to its residents. According to "Politico," Trump sees potential benefits for American business in Greenland's resources.
NATO countries are holding talks about the possibility of sending troops to Greenland, as reported by "The Telegraph." This move is in response to the threats made by Donald Trump, who is considering using US military forces to seize the Danish island. Germany and other European countries are discussing how to respond to potential actions by the American president.
The Danes plan to invest $1.5 billion in new inspection ships, drones, and sled dog patrols to enhance Greenland's security. Additionally, the modernization of the airport will allow operations of F-35 fighters.
