Greenland’s minerals inside the money race

President Donald Trump has said that he feels that the US would gain control over Greenland, underlining a claim on the Arctic Island that he has recently repeated several times, pointing to “economic security” on an occasion. While the autonomous Danish region is quick to say that it is not for sale, its vast and most unused mineral resources are in great demand.

Reptred gray peaks suddenly appear in front of us, as the motorboat navigates the coastal water and dramatic fjords on the southern tip of Greenland.

“Very highly pointed mountains, it is originally a gold belt,” in gestures, the mining company Amarok’s chief executive Eldur Olafson.

After sailing for two hours, we stepped into a remote valley under the Nalunak mountain, where the firm is drilling to sleep.

It is also intimidating the surrounding mountain range and valleys, hunting for other valuable minerals, has taken away the exploration license exceeding 10,000 sq km (3,861 sq mi).

Icelandic boss says, “We are looking for copper, nickel and rare earth.” “It is unwanted, and still has the ability to accumulate many large accumulation.”

The base camp is a group of housing of mobile buildings and bright orange housing tents, including more than 100 employees, including Greenlanders, Australian and former British coal miners. From there, a road climbs the valley, and we drive from a car in a gold mine, behind a dark tunnel inside the mountain.

“Look here!” Mr. Olafson says that the white quartz points to a seam and a thin dark line. “Gold, gold, gold. All the way is over. Is it not extraordinary?”

The mine, which was bought by Amarok in 2015, worked most of the time of the earlier decade, but then stopped due to a fall in gold prices and high operating costs.

Amroo is confident that the mine will now be beneficial. And it is planning to increase production this year, where it has created a new processing plant to crush the ore and refine the precious metal into gold bars.

“We can either exit the site with a gold suitcase, vs 30,000 tonnes of ship (carrying ore),” says Mr. Olafson.

He says that Greenland presents an unmatched opportunity as its huge mineral reserves are largely untouched.

“It can be the supplier of all the minerals that the Western world will need for decades,” says Mr. Olafson. “And this is a very unique situation.”

Nevertheless, there are currently only two active mines on the entire island.

Greenland is a self-governing field that is part of Denmark, but controls its own natural resources.

It is endowed with the eighth largest reserves of so -called rare earth elements, which are important to make everything from mobile phones to batteries and electric motors. It also has large amounts of other major metals, such as lithium and cobalt.

There is also oil and gas, but new drilling has been banned, while deep sea mining has also been rejected.

Christian Kejaldsen, director of the Business Association of Greenland, says the global “geopolitical status is currently interested in the world’s largest island”.

He points to China which has the largest reserves of the world’s rare earth metals, while the West wants to secure alternative supply.

“You have a very strong China that is sitting very heavy on important raw materials,” he says.

This has focused a growing focus among western countries to achieve access to the minerals of Greenland. China is also keen to join, but its presence is limited.

Roots Recently reported The US advocated an Australian mining firm not to sell Greenland’s largest rare Earth project to potential Chinese buyers.

The Minister of Greenland’s trade, trade and raw materials, Naza Nathanilson, says the interest of the minerals of the region has “increased within the last five years”.

She says: “We are using to have a hotspot for climate crisis. We want to be a part of the solution.”

Now permits are given for 100 blocks in Greenland, where companies are searching for viable deposits. British, Canadian and Australian mining firms are the largest foreign license holders, while Americans hold just one.

But there are many more steps before these sites become potential mines.

Nevertheless, while Greenland can be sitting on mineral money, no “gold rush” is slow to mourn.

The economy, whose annual GDP exceeds just $ 3BN (£ 2.4bn), is still inspired by public sector and fishing. And this area also depends on Denmark annually on $ 600m subsidy.

Greenland politicians hopes that mining revenue will reduce dependence on the $ 600M subsidy from Denmark, and will help promote freedom efforts. But in the meantime Greenland is earning more money than tourism.

Javier Arnot, head of Arctic Social Sciences at the University of Greenland, says, mining is still important for independence. “But practically, you can see that very few mining licenses are given.”

Ms. Nathanilson admitted that while partnership with the US and the European Union is being developed, “We still have not seen a large amount of money in the region”. He hopes that one and three to five mines will be operated within the next decade.

However, mining in Greenland is not easy due to its remote geography and weather. It is the largest island in the world and is covered by 80% of a snow sheet. There is no mountain and any road between the settlements.

Jacob Clove Kidding from Denmark and Greenland’s Geological Survey states, “It is an Arctic region that mapped the territory of the region.” We have problems in harsh conditions in terms of climate and limited infrastructure. So opening a mine is quite expensive. “

Those high costs in collaboration with low global metal prices have brought back investors.

Other people blame red tape for slow growth of the sector. The region has strict environmental rules and social impact requirements, and may take time to obtain permits.

Ms. Nathanilson says that most communities support mining, and it promotes local economies. “They (foreign miners) are shopping at local shops. They are appointing local employees. They are charter to a local boat or helicopter,” she says.

Nevertheless, in the largest city of the south, Cucourtoc, resident Heidi Mortenson Moller suspects whether the new mines will provide employment to the local people. “When they say they are going to add jobs, what are they talking about?”

Local Labor Union chief Jess Barthlsen, Sik says that many people think that mining income will “leave the country”, and Greenland will not benefit. But he supports the development of the sector. “Greenland requires more income and to earn money in methods other than fishing.”

It is not clear how to play Trump’s latest Gambit on Greenland. However, the region’s Prime Minister Mute EZ said earlier this month that “we need to trade with the US” and it “doors open in terms of mining”.

Mr. Kejeldsen of the Business Association hopes that it will be brought “very essential investment” in the region. “On the other hand, if the uncertainty around the signs from Trump draws for a longer period, there is a risk that it can negatively affect the investment environment.”