Greenland's vast resource potential has captivated Trump's attention.

Greenland's vast resource potential has captivated Trump's attention.
Greenland's vast resource potential has captivated Trump's attention.
  • In recent weeks, the years-long effort of U.S. President-elect Donald Trump to gain control of the world's largest island has intensified.
  • Trump stated that U.S. ownership of the autonomous Danish territory is crucial for national security and global freedom before his inauguration on January 20.
  • According to Jakob Kløve Keiding, senior consultant at the Geological Survey of Denmark and Greenland, there is a significant potential for critical raw materials.

The potential of Greenland's massive resources could be a significant motivation for U.S. President-elect Donald Trump's interest in acquiring the island, as mining executives and researchers describe it as an "enormous opportunity."

Recently, Trump has intensified his efforts to gain control of the world's largest island.

Trump stated that U.S. ownership of the autonomous Danish territory is crucial for national security and global freedom before his inauguration on January 20.

Trump has reiterated his stance on Greenland, stating that he is open to using military or economic force to annex it.

Greenland's Prime Minister Mute Egede has informed Trump that the Arctic island is not for sale and urged the international community to respect its aspirations for independence. Egede, along with Danish Prime Minister Mette Frederiksen, has also recently called for negotiations with Trump to address the issue.

Rep. Michael Waltz, R-Fla., the president-elect's incoming national security advisor, stated his firm stance on Trump's desire to annex Greenland as part of the U.S. when questioned about the matter.

In an interview with Fox News on Jan. 9, Waltz stated that the topic being discussed was critical minerals and natural resources.

"Waltz stated that the topic at hand is the reintroduction of America in the Western Hemisphere. He referred to it as Monroe Doctrine 2.0, which aligns with the 'America First' agenda."

Essential materials for the energy transition are referred to as critical minerals. These minerals, which often face supply chain disruption risks, include metals such as copper, lithium, nickel, cobalt, and rare earth elements.

Green technologies, including wind turbines, electric vehicles, energy storage, and national security applications, rely on critical minerals and rare earth elements as essential components.

The U.S. has previously warned that China's dominance in the critical minerals supply chain, which accounts for roughly 60% of the world's production of rare earth minerals and materials, poses a strategic challenge amid the pivot to low-carbon energy sources.

According to Jakob Kløve Keiding, a senior consultant at the Geological Survey of Denmark and Greenland (GEUS), a 2023 survey of Greenland's resource potential assessed 38 raw materials on the island, with most of them having a high or moderate potential.

The rare earth metals, graphite, niobium, platinum group metals, molybdenum, tantalum, and titanium are included in these materials.

Keiding stated via telephone to CNBC that Greenland has a significant potential for critical raw materials.

"These are crucial for the EU economy and are not limited to Europe, as they are also on the list of American critical raw materials," he stated.

'Greenland is not for sale'

Aaja Chemnitz, a Greenland parliamentarian from the Inuit Ataqatigiit party, characterized Trump's Greenland comments as "disrespectful" and emphasized the prime minister's stance that the territory is not for sale.

Chemnitz stated on Monday that while some people in Greenland may be concerned, he believes it is crucial to emphasize that Greenland has never been and will never be for sale.

Greenlandic lawmakers must have "specific objectives for cooperation with the U.S." according to Chemnitz.

American investors are 'welcome' in Greenland — but it's not for sale, politician says

The strengthening of ties between Greenland and the U.S. could aid in the development of Greenland's mining industry, she stated.

Chemnitz stated, "We have been looking for American investors for a long time, but we haven't found them. Therefore, their presence is quite welcome when it comes to the extraction of rare earths."

The Pituffik Space Base, previously known as Thule Air Base, is where the U.S. military maintains a permanent presence in northwest Greenland.

'A race for what's left'

For over 20 years, Roderick McIllree, the executive director of 80 Mile, a U.K.-based mining company, has been involved in Greenland, working on various projects including resource discovery and feasibility.

McIllree stated via video call to CNBC that in his opinion, what is happening in Greenland is a competition for the remaining resources.

"Greenland has the potential to host 20% to 25% of the last remaining extractable resources on the planet, according to a lot of independent state surveys. This is a huge opportunity for Greenland."

Currently, 80 Mile is actively developing three projects in Greenland, including a large oil concession on the east coast, a titanium project near Pituffik in the northwest, and its Disko-Nuussuaq project in the southwest.

McIllree stated that the Disko project of the firm could be one of the largest nickel and copper deposits on the planet, highlighting the resource potential in the territory.

Greenland is becoming increasingly relevant due to the climate change debate, the discussion of critical metals, and the geopolitical discussion. Its proximity to the US makes it a natural destination for significant US investment, as McIllree stated.

If Greenland plays their cards correctly, they will achieve independence, he stated.

'Significant strategic interest'

In March of the previous year, Ursula von der Leyen, the President of the European Commission, journeyed to Nuuk, Greenland to establish an EU office in the capital city.

The move, preceding Donald Trump Jnr.'s recent visit to the same city, aimed to strengthen Europe's presence in the region and the broader Arctic area.

At the time, Von der Leyen declared two cooperation agreements worth approximately 94 million euros ($95.9 million), stating that the funds would be utilized to invest in clean energy, critical raw materials, and Greenland skills.

As a geologist, Paul Lusty, head of battery raw materials research at Fastmarkets, knows that Greenland is rich in natural resources.

Lusty stated that rare earths have garnered considerable interest in Greenland, and their strategic importance to the U.S. is evident.

by Sam Meredith

Politics