Greenland Island, an autonomous territory of Denmark, has been attracting increasing international attention due to its rare earth and other critical mineral resources.
Greenland’s Prime Minister Jens-Frederik Nielsen has made it clear that Greenland is seeking cooperation with democratic countries to develop rare earth and other key minerals, ruling out any consideration of cooperation with Communist China.
This declaration comes at a time when the Chinese Communist Party has been weaponizing critical minerals, prompting Western countries to reduce their reliance on Chinese supply chains.
Nielsen stated in an interview with Nikkei on Wednesday (November 19) that Greenland is looking to partner with countries that have “strong democracies” to develop rare earth minerals. He expressed hopes for collaboration with Japan, the European Union, and the United States.
European Union countries are involved in the development of raw materials in Greenland, and Nielsen aims to strengthen their relationship with Greenland.
“We need the EU, and the EU needs Greenland,” he said.
Despite the Chinese Communist Party’s advantageous position in the development of rare earth and other critical minerals, Nielsen emphasized that Greenland does not see China as a partner in exploiting natural resources and infrastructure.
“China is not in our consideration,” he said, noting that Greenland has not received any investment requests from Chinese companies and does not view China as a “future partner.”
“We are diligently working to establish partnerships with our allies and like-minded countries,” he stated.
Denmark, an EU member state, is also hesitant to accept Chinese investments in Greenland as it has pledged to reduce dependency on China for rare earth and other important minerals.
According to EU officials, most of the important minerals designated by the European Commission are found in Greenland. With the EU already engaged in developing these projects, Greenland is prioritizing joint projects with European countries and Japan.
Greenland, located strategically in the Arctic Circle, is expressing caution towards China’s aggressive maritime expansion as part of the “Polar Silk Road” initiative. Amidst Russia’s efforts to enhance its influence in the region, there have been speculations about the United States’ interest in purchasing Greenland for economic and national security reasons.
While Nielsen asserts that Greenland will never be sold, he recognizes the importance of establishing a good relationship with the United States. He urges negotiations with Washington to deepen cooperation in rare earth development and other projects.
Currently, the United States remains an important partner for Greenland. Nielsen mentioned that Greenland will collaborate with Denmark, the United States, and NATO to enhance security. The United States already has military bases in Greenland, and Nielsen suggested the potential need to increase US military presence in the future.
Norwegian Arctic University of Norway’s Associate Professor Marc Lanteigne highlighted the significance of Greenland’s deposits of various metals, gemstones, uranium, and rare earths. As climate change and improved Arctic navigation capabilities increase, countries are looking at Greenland as a potential alternative source for strategic resources.
Tony Sage, CEO of Critical Metals, mentioned the company’s development of one of the world’s largest rare earth deposits in southern Greenland. He noted a surge in investor interest in Greenland, especially after Trump’s re-engagement with the White House and possible interest in acquiring the region.
In addition to Critical Metals, mining exploration company Amaroq is also dedicated to developing Greenland’s resources. Eldur Olafsson, CEO of Amaroq, highlighted the significance of the high-grade rare earth deposit recently discovered in southern Greenland for their company.
Following the announcement of the rare earth discovery, Amaroq confirmed on November 11th that their mining area in western Greenland also contains commercially viable reserves of germanium and gallium. Olafsson emphasized the strategic importance of this finding.
“The discovery of germanium and gallium is far more vital than people realize,” said Olafsson in a CNBC video interview.
Germanium and gallium are crucial components in various products, from electric vehicles to semiconductors and military applications. China dominates the global supply of these critical minerals. In response to Chinese threats of restricting exports of these critical minerals, more countries are realizing the strategic importance of diversifying their supply of critical minerals.