Greenland’s Rare Earth Mining Prospects Depend on Upcoming Elections

Greenlanders will vote in March as U.S. pressures Denmark for sovereignty transfer. Energy Transition Minerals hopes that the Siumut Party will oust the ruling Inuit Ataqatigiit to revive mining projects. The current ban on uranium mining halted exploration of valuable resources, crucial for economic independence in Greenland. Despite ties to China, the company appeals to Western markets, facing investor skepticism amid uncertain future dynamics.

Greenland is preparing for an election in March amidst increasing pressure from U.S. President Donald Trump on Denmark to transfer sovereignty over the semi-autonomous Greenland. The Australia-based mining company, Energy Transition Minerals, is optimistic that the social-democratic Siumut Party will replace the ruling left-wing Inuit Ataqatigiit (IA) Party in the upcoming election. Currently, the Siumut Party is the second-largest group in the Inatsisartut, Greenland’s parliament, and is gaining attention due to its promise to hold a referendum on independence from Denmark this year.

Since taking office in 2021, the IA has prohibited uranium mining, stalling the exploration of what Energy Transition Minerals identifies as potentially the largest deposit of rare earth oxides globally. Rare earth elements comprise 17 metallic minerals essential for producing batteries and magnets in electric vehicles and various advanced technologies. Notably, China commands approximately 70% of global mining and 90% of refining activities within this sector, creating a substantial reliance on Chinese sourcing.

The IA Party’s opposition to mining stems from concerns regarding uranium density in the ore, which they feared could lead to radioactive contamination in southwest Greenland, home to most of the 57,000 mainly indigenous residents. Energy Transition Minerals is now wagering that the Siumut Party, which originally endorsed the mining project, will succeed in the elections and lift the ban, thus facilitating economic development for Greenland and moves toward independence from Denmark.

Despite Energy Transition’s significant stakeholder, Shenghe Resources of China, the company has committed to supplying Western markets exclusively. The recent trade agreements between the U.S., European Union, and Australia may qualify the firm for substantial tax credits on its rare earths. However, investors remain skeptical about the company’s long-term viability as evidenced by its stock price trading at mere fractions of a dollar.

In summary, Greenland’s upcoming elections could impact the future of rare earth and uranium mining in the region. If the Siumut Party wins, it may lead to lifting the mining moratorium imposed by the current government, potentially fostering economic self-reliance and independence from Denmark. Nevertheless, uncertainties remain regarding Energy Transition Minerals’ market stability amidst external pressures and the intricacies of global mineral supply chains.

Original Source: www.gzeromedia.com