Greenland’s enormous mineral wealth remains dormant. Despite ranking eighth in the world in terms of rare earth rare earth reserves, the Arctic territorythe Arctic territory is still without a single active rare earth mining mine. The causes are many and complex: extreme weather, lack of infrastructure and a changing regulatory environment that holds back investment.
Rare earth mining caught between snow and law
Initiatives such as Kvanefjeld, which projected an annual production of 30 thousand tons of rare earth oxides (REO) (REO), have been frozen since 2022. The reason: the uranium content of the deposit exceeds the legal limit of 100 ppm, established after the Inuit Ataqatigiit party came to power. The Greenlandic Parliament banned uranium exploration, closing the way to one of the most advanced projects in the region.
Another case is Tanbreez, driven by Critical Metals, which plans a pilot plant by 2026 with financial backing from the U.S. Export-Import Bank. Although its concentrate contains a low percentage of REE (0.4% to 0.6%), its high content of heavy rare earths makes it strategic for U.S. manufacturers such as Ucore Rare Metals.
Meanwhile, other projects such as MotzfeldtSarfartoq or Gronnedal have barely passed the exploratory stage. Many of them have been active for more than a decade, but still lack the conditions to move towards production.
A geography that challenges logistics
The lack of year-round operational ports, poor electrical infrastructure, and dependence on air transportation air transportation make any mining operation face disproportionate operating costs. Harsh arctic conditions, with cold temperatures, snowstorms and little natural light, further aggravate the picture.
Greenland also lacks a consolidated mining sector, which means that skilled labor must be imported. These factors increase investment requirements and lengthen lead times.
Political tensions and stalled opportunities
The legal framework also contributes to the stalemate. Although in 2025 the Democrats gained greater parliamentary representation, the Ministry of Industry and Mining is still controlled by Inuit Ataqatigiit, which maintains a strict environmentalist stance. The 2025-2029 mining strategy prioritizes sustainability over accelerated development.
Despite agreements signed with the EU and the US to promote the supply of critical raw materials, the lack of clear definitions has pushed some companies to consider alliances with Chinese investors. Shenghe Resources already owns 6.5% of Energy Transition Metals.
Global competition for capital
Analysts such as Wood Mackenzie’s David Riley point out that Greenland competes with countries such as Canada, Australia or the United States, which offer better logistical conditions and legal security. Lack of infrastructure and high start-up costs will continue to be the main obstacles.
Even if the political scenario were to become more flexible, the natural environment and logistical barriers will severely limit the possibilities of making Greenland a key player in the global supply of rare earths.
Source: Wood Mackenzie
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