By Anders Lorenzen
In March, the people of Greenland created a seismic political shift, quickly dubbed ‘sneskred’ (avalanche).
The centre-right pro-business party Demokraatit surprised everyone, becoming the largest party in the Danish semi-autonomous self-governing region.
Greenland is the world’s largest island, with frozen terrain for much of the year. It is geographically positioned in one of the areas most sensitive to climate change impacts.
The resulting government confirmed in April was a broad coalition government.
Based on the election result, three things are clear.
T𝗵𝗲𝘀𝗲 𝗸𝗲𝘆 𝗰𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻𝘀 𝗰𝗮𝗻 𝗯𝗲 𝗱𝗿𝗮𝘄𝗻:
• A fundamental rejection of Donald Trump
• Independence is still a long-term ambition, not an immediate one
• Increased focus on building up economic sectors and strengths
𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀
• The focus on rare–earth mineral mining is back, but it benefits Greenlanders and not the US
• Strengthening of the fishing sector
• The debate about opening up Greenland for oil and gas developments is back
• Potential weakening of environmental and climate regulations in favour of economic developments
Below, we will examine in detail what a pro-business economic development agenda could mean for Greenland and its pristine Arctic environment.
Rare earth mineral elements development
Rare earth mineral elements (REE) mining—notably the controversial Kvanefjeld project—has long been a flashpoint in Greenlandic politics.
The project, which would extract REE and uranium as a by‐product, was stalled after the last Greenlandic elections, due to widespread environmental concerns and vocal public opposition. Many Greenlanders worry that such extraction could irreversibly harm pristine ecosystems and traditional ways of life.
However, a plausible scenario is the reopening of the Kvanefjeld project, at least for a consultation process and other REE. That is not to say there would be an immediate sea change in public opinion.
However, a party that wants a renewed focus on economic development would prioritise exploring underground wealth. This could create significant financial growth and strengthen the case for long-term complete independence.
Where are the REE deposits in Greenland?
Greenland’s mineral wealth is so rich that it contains all 17 REE chemical elements.
Kvanefjeld has the most significant REE deposits in Greenland, but there are other vital resources as well:
- Kvanefjeld (Kuannersuit) Deposit
- Located in southern Greenland, near the town of Narsaq.
- Operated by Greenland Minerals (now Energy Transition Minerals), this deposit is one of the world’s most significant rare earth resources.
- Contains an estimated 1 billion tonnes of ore, with significant amounts of uranium, thorium, and rare earth oxides (REOs).
- The deposit is part of the Ilimaussaq alkaline complex, rich in eudialyte, a mineral containing REEs.
- Environmental and social concerns, particularly regarding uranium extraction, have delayed full-scale development.
- Sarfartoq REE Project
- Located in western Greenland, near the town of Sisimiut.
- Hosted in carbonatite rocks, which are known for their high concentrations of REEs.
- The deposit is relatively underexplored but shows promising potential for light rare earth elements (LREEs).
- Motzfeldt Center
- Located in southern Greenland.
- Another alkaline complex with significant REE potential, though less explored compared to Kvanefjeld.
- Contains tantalum, niobium, and zirconium in addition to REEs.
- Kringlerne Deposit
- Part of the Ilimaussaq complex, near Kvanefjeld.
- Contains significant REE resources, focusing on heavy rare earth elements (HREEs), which are particularly valuable for high-tech applications.
However, to this day, no REE has been mined; it has only been at the exploration stage.
Controversies
The key reasons there has been so little progress on REE extraction are the controversies, especially those connected to the Kvanefjeld project.
Kvanefjeld, located in southern Greenland, is one of the most controversial mining projects in the world due to its unique combination of REEs, uranium, and thorium, as well as its potential environmental and social impacts. It contains not only REE but also uranium and thorium, which are radioactive materials.
While uranium can be a valuable byproduct, its extraction raises concerns about radioactive waste management and potential environmental contamination. Though less radioactive than uranium, thorium poses long-term ecological and health risks if not managed properly.
The mining and processing of uranium and thorium would generate radioactive waste, contaminating soil, water, and air if not properly contained.
Greenland’s pristine Arctic environment, frozen for most of the year, is highly sensitive to industrial activity. Mining operations could disrupt local ecosystems, including freshwater systems and marine environments.
Critics argue that the project could leave a legacy of pollution, affecting future generations and Greenland’s natural heritage.
Oil and gas development
Greenland is believed to have significant undiscovered oil and gas resources, particularly in its offshore basins. However, although several global oil giants have explored the environmentally sensitive region for oil, no commercial oil reserves have been proven or produced in Greenland.
According to the US Geological Survey (USGS), Greenland’s offshore basins could contain approximately 17 billion barrels of oil and 148 trillion cubic feet of natural gas.
These estimates are based on geological surveys and comparisons with similar basins in other parts of the world, such as the North Sea and offshore Norway.
Where are the potential deposits?
- West Greenland Basin
- Located off Greenland’s west coast, this basin has the most potential for oil and gas reserves.
- It shares geological similarities with productive basins in Canada (for instance, the Labrador Sea) and Norway.
- Exploration wells drilled in the 1970s and 2000s showed evidence of hydrocarbons but no commercially viable reserves.
- East Greenland Basin
- Located off the east coast, this basin is less explored but is believed to have significant potential.
- It is geologically similar to the Norwegian North Sea, a central oil-producing region.
- North Greenland Basin
- This basin is the least explored in the far north due to its remote location and extreme Arctic conditions.
- It is believed to have potential for both oil and gas, but exploration activities have been minimal.
A history of exploration
- 1970s–1980s: Initial exploration efforts by Chevron and Exxon focused on the West Greenland Basin. Several exploration wells were drilled, but no commercial discoveries were made.
- 2000s–2010s: Rising oil prices and melting sea ice renewed interest in Greenland’s offshore potential. Companies like Cairn Energy, Shell, and Statoil (now Equinor) conducted seismic surveys and drilled exploration wells.
- In 2010–2011, Cairn Energy drilled several wells in the West Greenland Basin, but none resulted in commercial discoveries.
- 2020s: Exploration activity has slowed due to low oil prices, high costs, and increasing focus on renewable energy and climate change. Greenland’s government has also adopted a more cautious approach to oil and gas development.
The outlook
The 2025 election results indicate a shift in Greenland’s political landscape that may eventually lead to a renewed focus on mineral extraction and oil exploration. However, oil exploration is a particularly geopolitically sensitive activity and may not be the priority.
Anders Lorenzen is the founding Editor of A greener life, a greener world.
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