Greenland warns EU and US: Invest in mining or China will

Greenland’s Minister of Business and Mineral Resources, Naaja Nathanielsen, signaled to the Financial Times that Greenland might turn to China for mining if the EU and US “do not hurry.”

Nathanielsen stated, “We want to develop and diversify our business sector, and for that, we need external investments.” When asked about turning to China, Nathanielsen responded that they want to cooperate with European and American partners, but if they do not come, “it will be necessary to look elsewhere.”

Western companies are showing increased interest in the Arctic island. United Airlines will begin flights from New York to the capital, Nuuk, starting next month. Greenland possesses large but difficult-to-access mineral deposits, such as gold and copper, and is located in a geopolitically crucial Arctic region.

Nathanielsen mentioned that the existing memorandum of understanding on mining development with the US, signed during Donald Trump’s first presidency, is about to expire. She added that Greenland unsuccessfully attempted to see if Washington wanted to renew it during the Biden administration.

The Greenlandic official added, “We had hoped the Trump administration would be more willing to engage in dialogue with Greenland on developing the mineral sector. We got a bit more than we asked for, because we don’t want to become American.”

On the other hand, Nathanielsen told the FT that she found Trump’s threats to acquire Greenland “disrespectful and unpleasant.”

Despite Trump’s rhetoric, Nathanielsen noted that China has not shown much interest in mining deals. She said there are currently only two Chinese mining companies in Greenland, but both are minority shareholders in inactive projects, and she speculated that Chinese investors are holding back because they “do not want to cause any provocation.”

The Greenlandic official’s comments came as the country celebrated granting the first license under its new mining law to a Danish-French group to extract anorthosite, a mineral used in the fiberglass industry.

According to Claus Stoltenborg, CEO of Greenland Anorthosite Mining, construction of the €150 million mining project in West Greenland is targeted to begin next year. The company’s backers include Greenland’s state pension fund, the Danish bank Arbejdernes Landsbank, and the French mining group Jean Boulle.

While only two mines producing gold and anorthosite are currently active in Greenland, two other mines that have received licenses have not yet begun production.

Nathanielsen said that the new four-party coalition government in Nuuk is “committed to ensuring development primarily for Greenland and Greenlanders” and would prefer to work with “allies and like-minded partners,” but added that Greenland is “struggling to keep up” in the changing Western alliance.

Nathanielsen asked, “We are trying to understand what the new world order will be. In this respect, Chinese investments are of course problematic, but to some extent, so are American investments. Because what is the purpose [of US investments]?”

Nathanielsen added that the EU is “suitable” for Greenland because the EU has very few of the minerals it needs and is also aligned on environmental criteria.