Wherever mining activities occur, there is a potential for environmental spills, as well as significant noise issues. The presence of ships, particularly around Greenland, contributes to an oceanic din that can cause stress and disorientation for marine life including fish, narwhals, seals, and whales. This noise pollution can disrupt communication among vocalizing species.
Economically and politically, there is much at stake for Greenland, where fishing serves as the primary industry, accounting for 95 percent of the island’s exports. The island is exploring rare earth mining as a way to diversify its economy, aiming to reduce reliance on subsidies from the Danish government, and potentially moving towards independence.
The mining industry in Greenland has faced challenges. In 2021, the Greenlandic government imposed a ban on uranium mining, which led to the halt of a project by the Australian company Greenland Minerals that also intended to produce rare earth elements. Greenland Minerals has declined to comment on the situation. Meanwhile, a Chinese-linked Australian company is suing the Greenland government for $11 billion in lost revenue, which may discourage other potential prospectors and continue to raise concerns among investors about the profitability of rare earth mining in the Arctic region.
Hammeken-Holm, a representative from Greenland, explains that discussions with mining companies indicate an understanding of the challenges involved and a lack of fear about potential obstacles. Greenland maintains open communications with these companies regarding exploration prospects and challenges. According to Hammeken-Holm, securing private financing for these ventures is difficult but reflects a global trend.
Despite the logistical challenges, the growing demand and geopolitical interest in rare earth elements may prove too tempting for mining companies. Hammeken-Holm suggests that discovering a particularly rich rare earth deposit could elevate Greenland to a critical position as a key supplier of these essential minerals.
Experts such as Exner-Pirot from the Macdonald-Laurier Institute and public policy expert Lajeunesse suggest that Western countries might aggressively intervene in the market, ensuring a consistent supply of these minerals vital for modern military technology, consumer goods, and energy transition. Joint efforts among entities like the U.S., Canada, Australia, or the European Union might be necessary, following EU’s strategic partnership with Greenland in 2023 to develop critical raw materials. Subsidies could make the mining industry more appealing to investors by bridging the gap between market prices and development costs as part of a strategy to secure long-term supply.
In conclusion, Greenland, a land undergoing rapid climate change, may soon find increased wealth and global influence. As ice continues to melt, it could reveal a wealth of mineral resources crucial to addressing global challenges.
Tom Vaillant contributed research and reporting to this article, which is part of the Grist series “Unearthed: The Mining Issue,” examining the global race to extract critical minerals for the clean energy transition.
