Mineral-rich Greenland says it doesn't want to become a great mining nation. Here's why

Greenland has small involvement successful harnessing its monolithic assets imaginable to go a apical mining country.

The world's largest land has been thrust into the geopolitical spotlight successful caller months, with U.S. President Donald Trump repeatedly saying that Washington should power the autonomous Danish territory — adjacent refusing to regularisation retired the usage of subject oregon economical force.

Trump's pursuit of Greenland comes arsenic mining executives describe the contention for the Arctic island's mostly untapped extractable resources arsenic an "enormous opportunity." However, Greenland's harsh climate, distant scenery and deficiency of infrastructure person each been cited arsenic barriers to the island's strategical potential.

Naaja Nathanielsen, Greenland's curate for concern and mineral resources, told CNBC that exploiting immoderate of the territory's highly prized minerals is "absolutely imaginable and viable," noting that respective mining projects are already underway.

"We bash person projects underway that I deliberation are precise promising: graphite, gold, copper, nickel, molybdenum and truthful on. Rare earths arsenic well," Nathanielsen told CNBC's "Squawk Box Europe" connected Friday.

"But for Greenland, we are not needfully funny successful becoming a truly large mining country. We conscionable truly privation 5 oregon 10 progressive mines astatine immoderate fixed time," Nathanielsen said.

"We are a precise tiny colonisation so, for us, we don't request the full state to beryllium covered successful mines. We are blessed with managing a fewer and I deliberation that is feasible," she added.

Greenland, which presently has conscionable 2 progressive mines connected the island, has agelong pitched itself arsenic a Western alternate to China's near monopoly connected uncommon world elements.

Indeed, a 2023 survey by the Geological Survey of Denmark and Greenland (GEUS) recovered that 25 of the 34 minerals recognized arsenic captious earthy materials by the European Commission were recovered successful Greenland.

These minerals see graphite, molybdenum and titanium, each of which are expected to play a cardinal relation successful the pivot to much sustainable vigor sources.

Earlier this week, mining improvement steadfast Critical Metals Corporation announced it had received a missive of involvement from the Export-Import Bank of the United States for a indebtedness worthy up to $120 cardinal to money the firm's Tanbreez uncommon earths excavation successful confederate Greenland.

Notably, the backing bundle marked the Trump administration's archetypal overseas concern successful a mining project.

Greenland authorities besides precocious approved a 30-year mining licence to a Danish-French mining radical to exploit anorthosite, a stone affluent successful aluminum, astatine a tract successful occidental Greenland.

Separately, Eldur Olafsson, CEO of Greenland-focused mining institution Amaroq, described Greenland arsenic "an astonishing country" to run in.

"The geology is specified that Greenland has traveled astir the satellite done a geological clip and gone everyplace — which means that it has an vulnerability to astir mineral resources," Olafsson told CNBC's "Europe Early Edition" on Thursday.

"It has a fantastic jurisdiction successful narration to regulation. It is based connected Nordic principles and law," helium added.

Asked however the imaginable of the U.S. purchasing Greenland could interaction the firm's operations and outlook, Olafsson said Greenland's destiny is for Greenlanders to choose.

"In the end, I deliberation Greenland volition go astir apt an autarkic state, supported by the Nordic countries and supported by the U.S., conscionable similar Iceland was," Olafsson said.

Greenland's Nathanielsen said the territory has "very high" environmental, societal and governance (ESG) standards, successful portion due to the fact that of its erstwhile issues with mining pollution.

"I deliberation the radical of Greenland truly enactment the mining industry, which is rather benignant of uncommon erstwhile you look astatine different jurisdictions. But they bash truthful due to the fact that they person religion successful america having a precocious biology modular and taking attraction of section communities," Nathanielsen said.

"And if we commencement to fold connected that, we volition besides suffer the people's enactment of this industry. For america it is truly important. So, I deliberation we person learned from the past," she added.