2026-01-24 14:00
publication
2026-01-24 14:00
Today, Greenland's raw material wealth is mainly on paper; the value of resources that can be developed in current conditions was estimated at approximately USD 186 billion. – assessed the Polish Economic Institute.
The PIE Economic Weekly wrote that two of the three Greenlandic deposits of the so-called rare earth metals (REE) – Kvanefjeld and Tanbreez – are among the largest in the world. According to the American geological services cited by PIE, Greenland has approximately 1.5 million tons of REE reserves, which ranks it 8th in the world. Other estimates of 36 million tonnes refer to the category resources which, unlike reserves, do not have to be either economically viable or technically extractable.
The Institute reminds that Greenland also has, among others, lithium, graphite, zinc, tungsten, titanium, copper, as well as oil and gas. A very simplified attempt to value Greenland's potential raw material resources was presented by American Action Forum analysts, estimating them at USD 4.4 trillion, while the value of the reserves themselves – i.e. the resources that can be developed in the current conditions – was estimated at approximately USD 186 billion.
Additionally – as noted by PIE – despite the issuance of 147 exploration licenses, the mining sector in Greenland is in an embryonic state. Since World War II, there have been only 9 mines on the island, of which only two are currently active: Lumina, where anorthosite is mined, and the Nalunaq gold mine. In the coming years, it is planned to launch the Amitsoq, Malmbjerg and Tanbreez projects where graphite, molybdenum and REE would be extracted, respectively.
The Institute indicates that mining development is limited by climate, high costs and restrictive environmental regulations. Logistical barriers are exacerbated by rudimentary infrastructure – less than 100 miles of roads and low-capacity ports. Labor, transport and energy costs are high and local labor is limited. Moreover, after the 2021 elections, the REE project in Kvanefjeld was blocked due to the co-occurrence of uranium – reminds PIE.
US President Donald Trump puts forward claims to Greenland – an autonomous territory of Denmark – and suggests taking the island by force. He also threatened to impose punitive tariffs on European countries opposing his plans to annex the island. He announced on Wednesday that he would not impose tariffs on eight European countries that were scheduled to come into force on February 1 in response to their attitude towards his Greenland claims.
He also declared that the framework for a future agreement on Greenland had been developed. At the forum in Davos, Trump avoided answering the question whether, according to the agreement on Greenland he announced, the US would take ownership of the island. He only stated that the US would get everything it wanted and that it would be a “long-term” deal. (PAP)
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