Adrienne Murray
Journalist
Bbc
The boss of the mining company Eldur Olafsson said that Greenland can provide minerals that the West needs for “decades”
President Donald Trump said he thought that the United States will take control of Greenland, highlighting a complaint on the Arctic island which he repeated several times recently, on an occasion, highlighting “economic security” as reason. Although the Danish autonomous territory has been quick to say that it is not for sale, its vast mineral resources and mainly unexploited are in great demand.
The shredded gray peaks suddenly appear in front of us, while the motor boat sails on the restless coastal waters and dramatic fjords at the southern tip of Greenland.
“These very high sharp mountains, it is essentially a gold belt,” made Eldur Olafsson gestures, managing director of the Amaroq mineral mining company.
After sailing for two hours, we put on the ground in a valley remote under the Nalunaq mountain, where the company Fore to train gold.
It also travels the mountain range and the surrounding valleys, chasing other precious minerals, having taken exploration licenses covering more than 10,000 km2 (3,861 miles m²).
“We are looking for copper, nickel and rare earths,” said the Icelandic boss. “This is unexplored and always has the potential to have several major deposits.”
The base camp is a group of mobile buildings and bright orange accommodation tents housing more than 100 employees, including Greenlanders, Australians and former British coal miners. From there, a road gets into the valley, and we drive by car into the gold mine, following a dark tunnel upwards inside the mountain.
“See here!” said M. Olafsson pointing towards a seam of white quartz and a thin dark line. “Gold, or, or all along. Isn’t that extraordinary?”
The mine, which AMAROQ bought in 2015, had exploited for most of the previous decade, but closed due to the drop in gold prices and high operating costs.
Amaroq is convinced that the mine will now be profitable. And it plans to expand production this year, where it has built a whole new processing plant to crush the ore and refine the precious metal in gold bars.
“We can either get out of the site each month with a golden suitcase, against a 30,000 -ton ship (carrying the ore),” said Olafsson.
He says that Greenland has an unrivaled opportunity because its huge mineral reserves are largely intact.
“He can be the supplier of all the minerals that the Western world will need for decades,” adds Olafsson. “And it’s a very unique position.”
The Nalunaq mining installation is based in a dramatic location
However, there are currently only two active mines on the whole island.
Greenland is an autonomous territory which is part of Denmark, but controls its own natural resources.
It has the eighth largest reserves of so -called rare land, which are essential to do everything, from mobile phones to batteries and electric motors. It also has large amounts of other key metals, such as lithium and cobalt.
There is also oil and gas, but new drilling is prohibited, while operating on the high seas has also been excluded.
Christian Kjeldsen, director of Greenland’s Business Association, said that the “global geopolitical situation at the moment arouses interest in the largest island in the world”.
He stresses that China has the largest reserves of rare land metals in the world, while the West wants to obtain alternative supplies.
“You have a very strong China sitting very strongly on critical raw materials,” he said.
This has supplied an increasing objective among Western nations to access Greenland minerals. China also wanted to get involved, but its presence is limited.
Reuters recently reported that the United States has put pressure on an Australian mining company so as not to sell the largest rare Greenland land project to potential Chinese buyers.
The Minister of Affairs, Trade and Raw Materials of Greenland, Naaja Nathanielsen, says that the interest in minerals in the territory has “absolutely increased in the last five years”.
She adds: “We are used to being a hotspot for the climate crisis. We want to be part of the solution.”
License has now been granted for 100 blocks across Greenland, where companies are looking for viable deposits. British, Canadian and Australian mining companies are the greatest holders of foreign licenses, while the Americans only hold one.
But there are many more steps before these sites become potential mines.
Current accommodation at the Nalunaq mine is very basic
However, while Greenland can be seated on mineral riches, any “gold rush” continues to be slow to materialize.
The economy, which has an annual GDP of just over $ 3 billion (2.4 billion pounds sterling), is still pulled by the public sector and fishing. And the territory is also based on an annual subsidy of $ 600 million in Denmark.
Greenland politicians hope that mining income will reduce dependence on the annual subsidy of $ 600 million in Denmark and help stimulate independence efforts. But in the meantime, Greenland earns more tourism money.
Official mining is still important for independence, explains Javier Arnaut, head of the Arctic social sciences at the University of Greenland. “But in practical terms, you can see that there are very few mining licenses allocated.”
Ms. Nathanielsen concedes that although partnerships are developed with the United States and the EU, “we have still not seen large sums of money flowing in this sector”. She hopes there will be three to five additional mines operating during the next decade.
However, mining is not easy in Greenland because of its geography and remote weather. It is the largest island in the world and 80% of it is covered by a ice cap. He has rugged mountains and no road between the colonies.
“It is an arctic terrain,” explains Jakob Kløve Keiding, of the Denmark and Greenland geological investigation, which has mapped the deposits of the territory. “We have problems with difficult conditions in terms of climate and limited infrastructure. It is therefore quite expensive to open a mine.”
These high costs, associated with low -world metal prices, retained investors.
Others blame the administrative formalities for slow growth in the sector. The territory has strict environmental regulations and social impact requirements, and obtaining permits can take time.
Ms. Nathanielsen maintains that most communities support mining and that it stimulates local savings. “They (overseas minors) shop in the local store. They employ local employees. They charter a local boat or helicopter,” she said.
Greenlanders do not know if a mining boom will help the local population
However, in the largest southern city, Qaqortoq, the resident Heidi Mortensen Møller is skeptical that the new mines will lead to a job for the inhabitants. “When they say they will add jobs, who speak?”
Jess Berthelsen, head of the Local Labor Union, Sik, says that many people think that mining income “will leave the country” and will not benefit from Greenland. But it supports the growth of the sector. “Greenland needs more income and earning money in other ways than fishing.”
We do not know how Trump’s latest Groenland gambit will take place. However, the Prime Minister of the Territory Mute Egede said earlier this month that “we have to do business with the United States” and that it was “open doors in terms of mining”.
Mr. Kjeldsen of the Association of Affairs, hopes that this will bring “an essential investment” to the sector. “On the other hand, if the uncertainty surrounding Trump’s signals drags for a longer period, there is a risk that this could have a negative impact on the investment environment.”
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