The mineral resources of Greenland, an Arctic island, have gained international attention following U.S. President Donald Trump‘s remarks about acquiring the territory from Denmark, raising concerns among European allies.

These sentiments were reiterated by Vice President JD Vance during a January 12 appearance on “Fox News Sunday,” where he stated, “There is a deal to be made in Greenland,” highlighting the island’s abundance of valuable natural resources.

Historically, Greenland’s mining sector has faced challenges in achieving profitability, but this situation may be on the verge of transformation.

Rich in minerals

Currently, Greenland operates just one commercial mine, known as White Mountain, situated north of the capital, Nuuk. This mine is characterized by its anorthosite rock, which is abundant in calcium and other minerals.

The operator, Lumina Sustainable Materials, exports the rock from Greenland’s western coast to markets in Asia, Europe, and North America, where it is utilized in the production of various items, including fiberglass, paint, fillers, cement, and polymers. There are ongoing initiatives to tap into the aluminum reserves found within the anorthosite.

“Greenland is a nation rich in minerals. We have minerals literally everywhere,” stated Bent Olsvig Jensen, Lumina’s managing director in Greenland, during an interview.

Numerous mining companies globally are engaged in exploration and feasibility studies throughout Greenland, yet White Mountain stands as the sole commercial operation currently active in the market.

Competition from China

The region is rich in rare earth elements, including lithium and scandium, which are essential for technologies like batteries. At present, China dominates the global supply chains for these critical materials.

Former President Trump has consistently asserted that U.S. control over Greenland is vital for “international security.” His remarks sparked significant political reactions in both Greenland and Denmark, but mining firms perceive a potential opportunity.

“His interest in Greenland could actually facilitate greater investment access, which is crucial for the industry’s growth in the region,” stated Jensen. “Therefore, I certainly welcome it. It is essential for both the industry and the political landscape in Greenland to align ourselves with Trump and the U.S.”

‘Not for sale’

While Greenland operates with a high degree of autonomy, Denmark retains responsibility for the island’s defense.

Naaja Nathanielsen, Greenland’s minister for resources, reiterated the government’s longstanding position regarding Trump’s interest: open for business, but not for sale.

“We are eager for American investments and seek collaboration with the U.S. State Department, and we have been advocating for this for quite some time,” she remarked.

Greenland entered into an agreement with the Trump administration in 2019 aimed at enhancing its mining sector.

“The U.S. supported our direct outreach to investors globally, and this agreement has recently concluded. We have been seeking renewed engagement from the U.S. for some time now,” Nathanielsen stated.

Challenges

Despite the acknowledged mineral resources of Greenland, securing investment in the mining sector has been a persistent challenge.

“For many years, we have observed a reluctance among investors to commit to high-risk, long-term projects. Currently, we hold only one American-owned license, while we have 23 from Canada, 23 from the U.K., and around 10 from Denmark. Thus far, U.S. involvement in this area has been limited. We certainly welcome it, as there are numerous opportunities available,” Nathanielsen remarked.

The government of Greenland is advocating for complete independence from Denmark. Proponents believe that the island’s mineral resources could eventually serve as the economic basis for full statehood. However, significant progress is still needed, according to Ulrik Pram Gad, an analyst at the Danish Institute for International Studies in Copenhagen.

“If the goal is to extract minerals and achieve economic self-sufficiency for Greenland, there must be an increase in international processing capabilities,” Gad noted.

It is essential to carefully consider how to ensure that mining projects provide tangible benefits to local communities rather than replicating a model of exploitative extraction. If not managed properly, the Greenlandic population may ultimately oppose these initiatives, he noted.

The potential for profit is not guaranteed. The Aappaluttoq mine, which produced rubies and pink sapphires, ceased operations in 2023 when its operator, Greenland Ruby, declared bankruptcy with debts totaling $71 million. The company is currently undergoing restructuring and is in search of new investors to resume its activities.

Greenland spans 2.1 million square kilometers, much of which remains covered in ice for a significant portion of the year.

“We are situated in the Arctic, which presents certain logistical challenges,” stated Jensen from Lumina. “Not all areas of Greenland are accessible year-round, but we can devise plans to navigate these issues.”

Jensen emphasized that investors need to exercise patience to achieve profitability.

“Developing a project from initial exploration to a fully operational mine capable of production and sales is a lengthy process. As is often said in the mining industry, ‘Time is money.'”