Greenland has appeared to offer US and European mining companies an ultimatum by suggesting the mineral-rich island could turn to China if they don’t invest. A minister for Greenland, which is a semi-autonomous territory of Denmark, said while it wants to work with American and European partners to help extract its natural resources, the island may have to look elsewhere as it looks to grow its economy.
Greenland’s Minister for Business and Mineral Resources Naaja Nathanielsen told the Financial Times: “We want to develop our business sector and diversify it, and that requires investments from outside.” In response to a question asking about turning to China, she said: ‘We do want to partner up with European and American partners. But if they don’t show up I think we need to look elsewhere.”
Greenland, in the Arctic Circle, possesses large amounts of minerals and metals, including gold, copper, uranium and iron.
However, mining on the world’s largest island is tricky due to its terrain and freezing climate.
The Trump administration has many times expressed its wish to take control of Greenland, citing the island’s natural resources and its strategic value.
Donald Trump hasn’t ruled out using military force in regards to acquiring Greenland which has angered many of its people.
Ms Nathanielsen described the US President’s comments as “disrespectful and distasteful”, echoing a similar message made by Greenland’s Prime Minister.
She also told the FT that a current memorandum of understanding of mineral development with the US, signed during Mr Trump’s first term as president, is ending and that Greenland was unsuccessful in seeing if Washington wanted to renew it under the Biden administration.
She said: “We sort of hoped that the Trump administration would be more willing to engage in dialogue with Greenland about the mineral sector development. We got a bit more than we asked for, because we have no wish to be American.”
Ms Nathanielsen said there has been little interest from China over mining deals, with only two Chinese mining companies — both minority shareholders in inactive projects — in Greenland at the moment.
She suggested Chinese investors could be holding back as they don’t want to “provoke anything”.
It comes after Greenland last week awarded a 30-year mining permit to a Danish-French group to extract anorthosite rock which will be used in the fibreglass industry.
