Donald Trump risks spooking investors in Greenland, the mining minister warns

Greenland’s mining minister has warned that Donald Trump’s proposal to buy the Arctic could be “devastating” for the mineral’s offering to international investors.

Naga Nathanielsen told the Financial Times that the speech of the US President-elect, especially his refusal to rule out the use of force to suppress… Capture the islandIt risked damaging its image as a stable, resource-rich democracy.

“When he talked about not ruling out military use in… Greenland “I was very concerned about how investors would view Greenland, perhaps as a democracy on the verge of being unstable or being overtaken,” Nathanielsen said. “It would be devastating for our metals sector because investors don’t like instability.”

Some mining companies have asked the island’s government for a guarantee that their licenses will remain valid “if the United States occupies Greenland,” a person familiar with the matter said.

“Companies are looking for a reason not to make the investment. This could fall into the category of political instability.”

However, Nathanielsen said she believes this is not the correct way to interpret the next US president’s words.

“If you summarize the speech, what I hear Trump saying is that he believes Greenland’s natural resources should be used. “We completely agree with him on this matter,” she said.

Mining companies operating in Greenland had a similar view and were more puzzled than actually concerned, said Nathanielsen, whose ministerial portfolio includes business, trade, justice and gender equality.

“Everyone was anxiously waiting to see: What is the actual message out there? . . . Where does it all land?,” Nathanielsen said.

Greenland has presented itself as an alternative to Western mining for many Rare earths And metals – a sector dominated by China – are attracting the attention of US officials keen to keep Beijing and Moscow at bay.

Nathanielsen said Western capitals are increasingly aware of the need to diversify their supply chains and ensure they are not dependent on China or Russia for minerals used in defense production.

This has not translated into the kind of financing and investment that mining companies need to start projects in a difficult location like Greenland, Nathanielsen said, calling it a geopolitical mistake.

“I think everyone was asleep. And he needs to wake up,” she said.

The mining industry is also key to Greenland’s growing demand independence. Along with tourism, the sector is seen as the best way to boost the island’s economy, allowing it to no longer need a 4 billion Danish kroner ($550 million) annual grant from Denmark, which controls the territory.

Despite her dissatisfaction with Trump’s tone… Many Greenlanders have seen an upward trend Because of the next president’s interest in their homeland, because he raised the issue of the region’s independence from Denmark to the forefront. But Greenland still has a lot of work to do regarding its economy, Nathanielsen said.

Although several companies hold licenses to extract a wide range of resources in the Arctic region, there is no large-scale mine in operation, and Greenlandic officials and mining bosses admit the lack of progress is disappointing.

Greenland’s remoteness, lack of infrastructure, and short mining season have all prevented many projects from coming to fruition.

Nathanielsen said Trump’s initial interest in Greenland in 2019 sparked a wave of cooperation between the Arctic region and the US State Department in the mining sector, and she expressed hope that his recent comments were an indication that this work would expand.

“To get these minerals from Greenland, it’s not enough to just say, ‘We want this.’ “You also need to help companies in those early stages where it’s very important to get a lot of financing,” she said.

Anglo American, the London-listed mining company, is Greenland’s largest company and has very early-stage exploration licences, which are due to expire this year but are subject to renewal.

Other companies have found promising supplies of copper, oil and metals such as gallium, but have been unable to obtain financial support despite decades of trying in some cases.

The government in Nuuk has halted the controversial Kvaneveld project in southern Greenland – where a Chinese company has a minority stake – because the land contains not only rare earths but also uranium.

In addition to the organizational challenges, there are logistical obstacles. Greenland has no roads connecting its cities, let alone its mineral deposits. “You also have to create supporting infrastructure, in addition to the actual mine,” said Svend Hardenberg of Energy Transition Minerals, the developer of the Kvanefjeld project. “There is also a shortage of skilled workers, because it is an industry that is not yet mature.”

“The United States and Europe need access to rare earth elements because China has a de facto monopoly on them,” Hardenberg said.

Roderick McElree, CEO of 80 Mile, a UK-listed mining company with three projects in Greenland, said he hoped Trump could resolve the situation.

“People think Greenland is very difficult, very difficult,” he said. Then Donald Trump shows up and says Greenland is probably the most valuable piece of real estate in the world, and suddenly everyone wants to invest.

“It’s a paradigm shift in sentiment. Greenland is now on the agenda. It’s a land of amazing opportunities.”