Greenland’s untapped rare earths draw global interest amid China supply concerns

Greenland's untapped rare earths draw global interest amid China supply concerns

As Western nations scramble to reduce dependence on China's dominance in rare earth production-critical for smartphones, electric vehicles, and military hardware-Greenland is emerging as a potential mining frontier, though its remote Arctic conditions pose steep challenges.

The Tanbreez project: A potential gamechanger

On a windswept slope near Qaqortoq in southern Greenland, Tony Sage, CEO of Critical Metals, surveyed the 15 sq km site of the proposed Tanbreez mine, one of the island's largest rare earth deposits. "You've got the black, the white, and the red," he said, holding a rock sample. "The red is what everyone's after-that's where the rare earths are."

Rare earth elements-17 metals like terbium and neodymium-are essential for modern technology, from consumer electronics to green energy infrastructure and defense systems. Yet China controls over 60% of global mining and processes more than 90%, leaving Western economies vulnerable to supply disruptions.

Beijing's recent export restrictions (later suspended) underscored this dependency, sending industry shares soaring. The U.S. and EU are now racing to secure alternative sources, with Greenland's untapped reserves drawing particular attention.

U.S. strategic interest and financing hurdles

Greenland's geopolitical significance surged in 2019 when then-President Donald Trump proposed acquiring the autonomous Danish territory, citing "national security" concerns. Greenland's Prime Minister Jens-Frederik Nielsen rejected the idea, stating the island was "not a piece of property."

Despite the setback, U.S. interest persists. Critical Metals has signed non-binding supply agreements with two American rare earth processors linked to defense, and the U.S. Export-Import Bank has signaled a potential $120 million loan. "Public funding is flowing into this space like never before," noted analyst Neha Mukherjee of Benchmark Mineral Intelligence.

Yet challenges abound. The Tanbreez project, granted an exploitation license five years ago, still requires financing, feasibility studies, and government approvals. With no roads, access relies on boats or helicopters, and all infrastructure-from processing plants to worker housing-must be built from scratch.

"This drill program is costing us millions... but the reason we're doing it is because of Trump's mantra and the fact that the U.S. and EU really need these rare earths."

Tony Sage, CEO of Critical Metals

Greenland's mineral wealth and economic hopes

Spanning over 2 million sq km, Greenland holds 25 of the 30 minerals deemed "critical" by the EU, alongside gold, zinc, and untapped oil and gas. "It's a vast, underexplored land mass that's geologically favorable," said Diogo Rosa, an economic geologist at the Geological Survey of Denmark and Greenland. "As resources deplete elsewhere, the trend is shifting toward remote areas."

Greenland's $3 billion economy, heavily reliant on fishing and Danish subsidies, sees mining as a path to diversification. Naaja Nathanielsen, Minister for Business and Minerals, expects three to five mines to open within a decade, though she cautions: "It's a slow business." Tourism is growing, but mining could play a "substantial" role in the island's future.

Logistical and environmental barriers

The Arctic's harsh climate, lack of infrastructure, and strict environmental laws complicate operations. Only nine companies currently hold mining permits, with just two active mines. Lumina Sustainable Materials, on Greenland's west coast, exports anorthosite for e-glass and cement but faces a seven-month shipping window due to winter ice. "We stockpile everything-even shampoo and toothpaste-for six months," said managing director Bent Olsvig Jensen.

Public opposition has also stalled projects. The Kuannersuit (Kvanefjeld) deposit, one of the world's largest, was blocked over uranium content and environmental concerns. Though an arbitration case was dismissed last week, legal battles continue.

Local impact: Jobs vs. nature

In South Greenland, home to 6,000 residents, mining could reverse population decline. Malene Vahl Rasmussen, Mayor of Kujalleq Municipality, anticipates three mines operating within years, bringing jobs beyond "cleaning and mechanics." Yet skepticism lingers in a culture tied to hunting and fishing.

"We're hoping to attract people back," Rasmussen said. With a new airport and deepwater port planned for Qaqortoq, the region stands at a crossroads-balancing economic opportunity with environmental preservation.

Analysts: Cautious optimism

While Greenland's rare earth projects are "still early-stage," Mukherjee said, their success hinges on proving economic viability. "Why would a major firm invest here when copper or gold offer quicker returns?" asked Rosa. Yet with global demand surging, Greenland's strategic metals may yet redefine its future.