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US and European mining companies need to act quickly and invest in Greenland, as warned by Naaja Nathanielsen, the minister for business and mineral resources in the vast Arctic territory. She emphasized the importance of outside investments to develop and diversify Greenland’s business sector.
With large deposits of minerals such as gold and copper, Greenland is seeking partnerships with European and American companies to boost its economy in mining and tourism. However, if these partners do not step up, Greenland may have to consider turning to other countries for assistance, including China.
Greenland’s memorandum of understanding on mineral development with the US, signed during Donald Trump’s presidency, is coming to an end. Despite hopes for renewal under the Biden administration, no progress has been made. Nathanielsen expressed frustration with Trump’s aggressive approach towards Greenland, stating that his threats to take control of the territory were disrespectful and distasteful.
While there is little interest from China in mining deals in Greenland at the moment, the country recently awarded its first mining license under a new mining code to a Danish-French group for an anorthosite project. This €150 million mining venture aims to start construction next year and is backed by a Greenlandic state pension fund, Danish bank Arbejdernes Landsbank, and French mining group Jean Boulle.
Greenland currently has two operating mines producing gold and anorthosite, with two more mines holding licenses but not yet in production. The new coalition government in Nuuk is focused on creating development for Greenland and its people, preferring to work with allies and like-minded partners.
As Greenland navigates the changing dynamics of the western alliance, Nathanielsen highlighted the challenges in defining the new world order. While Chinese investment raises concerns, she also questioned the purpose of US investments. She sees the EU as a good fit for Greenland due to its lack of essential minerals and alignment on environmental issues.
In conclusion, Greenland is eager to attract investments from Western partners to drive its economic growth in mining and tourism. The government is committed to finding strategic alliances that support the development of Greenland while navigating the complexities of global geopolitics.
