Greenland's pivotal choice: Mining restrictions face challenge
The Australian mining company Energy Transition Minerals (ETM) has appealed to the authorities of Greenland to liberalize the regulations concerning uranium mining, Reuters reported on Tuesday. The company hopes that the new local government will revoke the existing restrictions.
The appeal is related to the parliamentary elections scheduled for March 11. The outcome of these elections will determine the makeup of the new government of Greenland, which has the status of an autonomous territory dependent on 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, which can supply up to 15% of the global demand for components used in the production of consumer electronics and weapons. It is estimated that Kvanefjeld is also 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. After the 2021 elections, the Inuit Ataqatigiit (IA) party, which won, halted mining at Kvanefjeld citing ecological concerns and the proximity of populated areas. At that time, a law was adopted banning mining from deposits where the uranium content exceeds 100 ppm (parts per million, equivalent to grams per tonne). Additionally, it was noted that the mine is located near a UNESCO World Heritage site and only a few kilometres from the town of Narsaq.
Currently, due to the upcoming elections, the government of Greenland is operating in a limited capacity. The ruling IA party maintains the decisions regarding mining at Kvanefjeld. The partner in the ruling coalition, the Siumut party, which in 2021 did not vote for the adoption of the restrictions, has so far not taken a stance on the matter. However, Reuters noted that the statute of the group includes a provision for the possibility of developing mines. The agency also pointed out 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 (CAD 197) 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, 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 possible further actions by the American president.
The Danes plan to invest $1.5 (CAD 2.1) billion in new inspection ships, drones, and sled dog patrols to increase Greenland's security. Additionally, the modernization of the airport will allow for operations of F-35 fighters.
