Greenland’s Untapped Mineral Wealth: A Land of Opportunity and Obstacles

Introduction

In the March 20, 2025 episode of The Journal, hosted by The Wall Street Journal and Gimlet, Jessica Mendoza and Suna Rasmussen delve into the paradoxical landscape of Greenland—a nation abundant in minerals yet surprisingly devoid of substantial mining activity. Titled “Greenland Has Tons of Minerals. So Where Are All the Miners?”, the episode explores the multifaceted challenges that hinder the realization of Greenland’s mining potential, juxtaposed against its significant geopolitical and economic implications.

Greenland’s Mineral Abundance and Strategic Importance

Greenland, an autonomous territory of Denmark, stands as the world's largest island, covering nearly a quarter of the United States' territory. Despite its vast size, it is sparsely populated with only about 57,000 residents. Beneath its icy surface lies an estimated 43 of the 50 critical minerals deemed vital by the United States for national security, including rare earth elements essential for technologies ranging from microchips to fighter jets.

Suna Rasmussen, a Danish journalist with a long-standing interest in Greenland, encapsulates the island’s allure:

“Greenland is a mind-blowing place. It’s a huge landmass. It’s nearly one fourth of the territory of the United States. 80% of the island is covered by ice. In some places, the ice sheet is over a mile thick.” [(02:03)]

The strategic location of Greenland in the Arctic amplifies its geopolitical significance, especially amidst rising tensions between Western powers and Russia. Control over Greenland’s mineral resources could grant considerable economic and defensive advantages, particularly as the world seeks to diversify supply chains away from China’s dominance in rare earth mineral production.

The Enigma of Inactive Mining

Despite the apparent gold rush potential, actual mining activities in Greenland remain minimal. Rasmussen sets out to uncover the reasons behind this stagnation. Accompanied by Jessica Mendoza, he travels to Narsak, a picturesque town at Greenland’s southern tip, to meet with executives from Energy Transition Minerals, an Australian mining company eyeing the Kvanefjeld site.

Encountering formidable natural barriers, Rasmussen describes their journey:

“We borrowed two snow suits… got on the back of two snowmobiles and… made it to just below the mine entrance. But the whole thing was snowed over. So we got as close as we could.” [(08:04)]

This expedition highlights the sheer inaccessibility of Greenland’s terrain. Transportation is a significant hurdle—there are no roads connecting settlements, and maritime routes are perilous due to floating ice. Additionally, the local labor pool is limited, and the cumbersome licensing process further deters potential miners.

Regulatory and Environmental Hurdles

In 2021, the Greenlandic government implemented a stringent law banning the mining of minerals containing a specific threshold of radioactive uranium. Rasmussen notes:

“It's essentially impossible to extract these rare earths in Kvanefjeld without also extracting uranium. So they kind of fell victim to this new law.” [(10:56)]

This regulatory change has had profound repercussions. Energy Transition Minerals filed an arbitration case against the Greenlandic and Danish governments, seeking either the right to proceed with mining or $11.5 billion in compensation—an amount that dwarfs Greenland’s entire GDP of around $3 billion.

Environmental concerns also play a pivotal role. The proposed Kvanefjeld project would generate substantial radioactive waste, with the company suggesting the storage of 100 million tons in a mountain lake secured by dams. This proposition has been criticized by experts and met with anxiety from locals who rely on pristine natural resources for their livelihoods.

Local Opposition and Social Impact

The social fabric of Narsak is deeply entwined with its natural environment. Rasmussen recounts an encounter with local protesters advocating for the preservation of their land:

“I spoke to this young 25-year-old woman, indigenous people… ‘Why is it always us, the indigenous Inuit people, who have to suffer for the development of the western world?’” [(13:24)]

The Inuit population, having lived under Danish control for centuries, views the mining project as a continuation of colonial exploitation. The introduction of large-scale mining threatens their traditional ways of life, which are built on fishing and foraging. The proposed mining operations could irrevocably alter the local ecosystem and societal structures.

Conversely, proponents argue that mining could revitalize Greenland’s economy, which has been struggling with high unemployment since the closure of a local fishing factory a decade ago. Energy Transition Minerals promises 400 jobs, presenting the project as a pathway to economic self-sufficiency and a step towards Greenlandic independence from Denmark.

Geopolitical Implications and Global Supply Chains

The potential success of mining in Greenland extends beyond local and national boundaries. Successfully establishing profitable mining operations could encourage other companies to invest in Greenland, thereby strengthening the West’s efforts to build an alternative supply chain independent of China’s dominance in mineral refining.

Rasmussen emphasizes the complexity of such endeavors:

“It’s so much more complicated than just taking control of a piece of land.” [(18:03)]

Despite the availability of critical minerals, the absence of refining infrastructure in the West means that even if Greenland begins producing minerals, the global supply chain would still heavily rely on China for processing. This dependency underscores the intricate interplay between resource availability and technological infrastructure in shaping global economic and security landscapes.

Conclusion

The episode of The Journal vividly portrays Greenland as a land of immense potential hindered by natural, regulatory, and socio-political barriers. While the island’s vast mineral wealth positions it as a strategic asset in global geopolitics and economic diversification efforts, the path to unlocking this wealth is fraught with challenges. Balancing economic aspirations with environmental stewardship and respecting the rights and lifestyles of indigenous populations remains a critical and complex endeavor.

As Rasmussen aptly concludes:

“The place is so difficult and so complicated… it wouldn’t happen anytime in [President Trump’s] presidency.” [(19:24)]

This statement encapsulates the broader theme of the episode—the intricate and often insurmountable obstacles that transform Greenland from a mineral-rich territory into a symbol of both opportunity and caution in the modern geopolitical arena.