The energy transition demands specific raw materials, including rare earth elements used in electric motors and generators. Greenland holds untapped reserves of these materials, but hurdles complicate large-scale extraction.
Thousands of drill cores were extracted in a rare earth-rich region of southern Greenland during a 2012 exploration.
Andrew Testa / Colour / Laif
Research for this article was supported by the Pulitzer Center.
From wind turbines to electric cars and consumer electronics, many of today’s advanced technologies rely on critical raw materials. This dependence has put Greenland – a region rich in these resources – in the sights of industrialized nations.
The world’s largest island holds substantial reserves of essential minerals, including lithium, niobium, hafnium and zirconium – key components for batteries and other technological applications.
In addition, Greenland possesses deposits of rare earth elements, which are prized for their role in energy transition technologies but accessible in only a few locations worldwide. Nations with access to these resources have a significant competitive edge.
To secure its future supply of these raw materials, the European Union recently signed a mining agreement with Greenland, following a similar pact with the United States. While China has expressed interest in a similar deal, but current geopolitical tensions place it at a disadvantage.
Despite this heightened interest in Greenland’s valuable resources, experts caution that a mining boom is still far from imminent. The challenges ahead are considerable, encompassing technological hurdles, cost-efficiency concerns, environmental implications, and complex legal and political dynamics.
Rare earth metals power magnets in electric motors
Of the 17 known rare earth elements, four are in high demand for energy transition technologies: dysprosium, neodymium, praseodymium and terbium. Neodymium and praseodymium in particular are essential for the magnets used in electric motors and generators, such as those found in wind turbines and hybrid vehicles. Adding small amounts of dysprosium and terbium strengthens these magnets, thus enhancing their durability.
Demand for these metals currently outpaces supply and is expected to rise further. According to the EU’s Joint Research Centre, prices are likely to remain high for the foreseeable future.
Southern Greenland has shown promising reserves of rare earths, with ongoing exploration underway. While some deposits are sizable, the concentration of rare earths in the region’s ore is relatively low, according to Flemming Getreuer Christiansen, a geoscientific consultant with experience in Greenland’s mining industry. «A good rare earth mine has a content of 3% to 6%, a bad one only 1%,» he says. This lower concentration of the desired elements drives up the costs of extraction and processing.
Could Greenland’s rare earth reserves provide significant quantities of supplies for Europe or the United States in the coming years? Mining has a long history on the island, dating back to the 19th century, with past efforts focusing on coal and uranium extraction. Currently, however, only one mine is operational, extracting anorthosite, which is used to produce rock wool insulation. Mining for sapphires and rubies ceased in 2023, and no rare earth mine is yet active.
Ice floes block the fjords, especially in winter
One major obstacle is Greenland’s harsh climate. The northern coastline is blanketed in sea ice for much of the year, which makes extraction prohibitively costly. «It’s far too expensive there,» says Christiansen. Southern Greenland, where ice-free fjords open in summer, has conditions similar to Norway.
Yet even in the south, ice floes obstruct transport during winter, necessitating on-site storage solutions. Christiansen notes that climate change will ease access over time as the ice recedes.
«We know that Greenland has potential to offer key resources such as rare earths,» says Florian Vidal, a political scientist from the Arctic University of Norway. But unlocking this potential will require investment and skilled personnel, he adds. «This will be the biggest challenge for Greenland over the coming decade.»
In theory, Greenland has sufficient workers to support the mining activities. However, multiple airports are currently being built across the island, and are drawing from the same labor pool, Christiansen notes. Thus, some employees for the mines, or at least for their initial construction, would need to come from abroad, he says.
Environmental concerns are also significant. Expanding mining activities could increase pollution risks, not only at the mines but also due to the added shipping traffic in Greenland’s fjords, where fishing is a vital industry. «There are concerns in the fjords and among the fishermen,» says Vidal.
The EU’s mining agreement with Greenland’s government places a strong emphasis on sustainability. Under the terms of the pact, resource extraction will proceed only under stringent environmental conditions.
Can mining help Greenland achieve independence?
Greenland’s political leaders are determined to chart a course toward economic independence from Denmark. The expanded mineral extraction is seen as a step in this direction. However, the topic of mining has polarized the public. Since a government shift in 2021, environmental regulations for mining have become more stringent, with consequences that are still being felt today.
A high-profile legal dispute underscores these tensions. Australian mining firm Greenland Minerals was close to securing approval to mine in Southern Greenland when the newly elected government banned uranium mining in 2021.
This decision, formalized in law, led to the revocation of the company’s rights to the Kuannersiut project – a project it which it had invested heavily over the prior 15 years. The government argued that extracting rare earths there would unavoidably entail mining uranium, which is now prohibited. In response, Greenland Minerals has sought $11.5 billion in compensation, initially via arbitration and then in court.
This unresolved conflict has cast a shadow of uncertainty over Greenland’s investment climate. «Today, the political risk in Greenland is considered to be higher than in many African countries,» says Christiansen. The Arctic University’s Vidal notes that while Greenland generally offers a stable environment for companies, the rare earth mining situation has proved to be an exception. Investors may in the future hesitate before committing to new projects, he notes.
«It will take many years before Greenland earns really large amounts from mining,» Christiansen says. A handful of mines may open within the next 10 to 15 years, but even for the EU, this would amount to little more than a drop in the bucket. For Greenland, the revenue would still be far from sufficient to achieve full economic independence.
Latest articles
Below, you’ll find links to a selection of our free content. If you’d like access to all of our content, including the full version of our twice-weekly newsletter, please upgrade here.
Global reporting. Swiss-quality journalism.
In today’s increasingly polarized media market, the Switzerland-based NZZ offers a critical and fact-based outside view. We are not in the breaking-news business. We offer thoughtful, well-researched stories and analyses that go behind the headlines to explain relevant events in the U.S., in Europe and worldwide. To produce this work, the NZZ maintains an industry-leading network of expert reporters around the globe who work closely with our main newsroom in Zurich.
Sign up for our free newsletter or follow us on Twitter, Facebook or WhatsApp.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=67369c01285643ce8dd392591aaef81f&url=https%3A%2F%2Fwww.nzz.ch%2Fenglish%2Fgreenlands-rare-earths-draw-keen-international-interest-ld.1857112&c=12360843224407862802&mkt=de-de
Author :
Publish date : 2024-11-13 16:00:00
Copyright for syndicated content belongs to the linked Source.
