Greenland Explores Chinese Investment Options for Mining Sector Development

Greenland’s Minister for Business, Trade, Mineral Resources, Justice, and Gender Equality, Naaja Nathanielsen, has indicated a potential pivot toward China for investment in the mining sector if the United States and European Union fail to engage in cooperative efforts.

Nathanielsen highlighted the necessity for foreign investment to diversify Greenland’s economy and develop its business sector. While she reaffirmed the priority of collaborating with Western partners, she cautioned that a lack of interest from them would compel Greenland to explore alternative options, including partnerships with Beijing. She also noted the challenges posed by instability within the Western alliance, which complicates the search for reliable economic support.

This declaration comes at a time of increasing global interest in Greenland’s abundant mineral resources. According to The Arctic Institute, the region is rich in rare earth elements, uranium, zinc, and iron ore, making it a target for international investors. However, Greenland has encountered several obstacles since achieving autonomy in 2009, including harsh climate conditions, inadequate infrastructure, and a shortage of skilled labor. In 2023, Greenland signed a memorandum of understanding with the EU regarding mineral supplies, but the initiative faltered due to bureaucratic hurdles and hesitance among European investors.

China has already demonstrated interest in Greenland. In 2016, Shenghe Resources, a Chinese company, acquired a 12.5% stake in Greenland Minerals. Furthermore, in 2024, Beijing proposed a $200 million investment to develop mineral deposits in the Kvanefjeld area.