Greenland Aligns with Europe in Critical Minerals Strategy

Greenland’s 30-year anorthosite mining deal marks a strategic pivot towards Europe—reinforcing its role in the race for sustainable raw materials and backing the EU’s bid to cut reliance on China and Russia.

Exclusive mining rights have been granted to Greenland Anorthosite Mining (GAM), a joint venture between Denmark, Greenland, and the French Jean Boulle Group. The extraction near the Qeqertarsuatsiat fjord in western Greenland is known for its geological richness and relative proximity to infrastructure corridors. Anorthosite, valued for its high aluminium and calcium content, is considered a more sustainable alternative to traditional bauxite in aluminium production and is also a key input in the fibreglass industry. Its extraction could reduce the carbon footprint of major European manufacturing sectors, especially those tied to renewable energy infrastructure and construction.

This grant is the first mining licence granted under Greenland’s revised 2024 Mining Act, which now allows Environmental and Social Impact Assessments (ESIA) after licensing. The change aims to attract investment while preserving oversight of environmental and community impacts. It makes Greenland more appealing to global partners without diluting its commitment to environmental stewardship, a core part of its identity and image.

Strategic Resource Development Goals

As an autonomous territory of Denmark, Greenland is working to diversify its economy beyond fishing and Danish subsidies. Rich in rare earths, uranium, and other key minerals, it is well-placed to support the global shift to clean energy and digital infrastructure. However, political risk, poor logistics, and environmental concerns have long deterred investors.

The agreement marks a more proactive stance by Greenland to develop its mineral wealth within clear international environmental standards. It also reflects frustration with past interest, particularly from the US, which showed geopolitical intent but little economic action. Choosing European partners underscores Greenland’s focus on long-term planning, transparent regulation, and balanced development.

The deal positions Greenland to play a larger role in Arctic governance, sustainability, and regional integration. As melting ice opens new routes and resources, Greenland’s approach may shape how others respond to evolving polar geopolitics.

Implications for the European Union

For the EU, this partnership supports a key goal: securing critical raw materials for its climate and tech ambitions. Anorthosite’s role in low-emission aluminium aligns with the European Green Deal and efforts to strengthen supply chains as the EU targets net zero by 2050 while staying competitive.

Unlike China’s state-led model or the US’s strategic posturing, the EU focuses on co-development—joint research, infrastructure investment, and local skills training. This approach suits Greenland’s values and long-term aims, offering a model for Arctic resource management that others may follow.

The deal also serves as a test case for the European Critical Raw Materials Act, which seeks stronger ties with like-minded nations and more resilient supply chains. It could pave the way for further collaboration with research bodies, universities, and green tech firms.

Governance, Environmental Oversight, and Local Engagement

The Qeqertarsuatsiat project requires at least five years of preparation before it begins operations. During this phase, GAM must complete detailed ESIAs and community outreach. The Greenlandic government has stressed that public input will shape the final project design, with town halls and stakeholder meetings already planned to ensure inclusive governance.

Expected benefits include job creation in underemployed areas, improved transport and energy infrastructure, and local economic growth, potentially lasting beyond the mine’s lifespan. Capital inflows may also spur spin-offs in logistics, environmental monitoring, and technical training, embedding long-term value.

However, mining remains divisive. Supporters see a path to economic self-reliance; critics fear ecological harm and loss of traditional livelihoods. The project’s success depends on strong environmental enforcement, effective conflict mediation, and transparent, consistent engagement to build public trust.

Redefining Greenland’s Global Role

The agreement marks Greenland’s shift from a geopolitical outpost to an active global player, shaping its own development path. Choosing European partners over more interventionist options highlights the value of transparency, shared governance, and environmental responsibility in modern resource diplomacy.

As demand for strategic minerals grows, Greenland’s model may guide other resource-rich but fragile regions. It aims to show that small, autonomous nations can lead in ethical resource extraction and environmental stewardship.

The deal’s true test lies in balancing economic gains with ecological and social responsibility in one of the world’s most delicate ecosystems. If successful, it could set a benchmark for sustainable Arctic development—one rock at a time.

(The writer is a foreign affairs expert. Views personal.)