Greenland has granted a Danish-French consortium the right to exploit a type of rock essential for aluminum production, but used in various industries, including the glass fiber industry.
The permit was granted to the company Greenland Anorthosite Mining (GAM) for the extraction of anorthosite, an essential mineral, in the context of a previous interest expressed by US President Donald Trump in acquiring the autonomous island, part of the Kingdom of Denmark.
Hard with Danish legislation
According to Reuters, GAM, supported by the French company Jean Boulle Group and real estate investment funds from Denmark and Greenland, has been granted an exploitation permit for the next 30 years.
Jesper Willaing Zeuthen, an associate professor at Aalborg University in Denmark, told Newsweek that Trump’s interest in Greenland’s resources seems to be more focused on long-term investments, which are difficult to achieve under the current legislation of the territory.
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Greenland attracted international attention after Donald Trump publicly expressed his desire to buy the island rich in minerals, oil, and natural gas. However, Greenland’s Minister of Mineral Resources, Naaja Nathanielsen, stated that while the US has shown interest, American investments have not materialized, and business dialogue with European partners is progressing more rapidly.
Anorthosite for a greener industry
GAM has been granted permission to extract anorthosite – a white rock composed of aluminum, microsilica, and calcium – which it intends to transport from western Greenland for the glass fiber industry.
Minister Nathanielsen stated that the project aims to provide a more environmentally friendly alternative to bauxite for aluminum production used in aircraft construction, vehicles, and the defense industry.
Although business delegates from the US visited the island this year, the rhetoric of the Trump administration has not resulted in formal dialogue or direct investments. Collaboration with the EU and Denmark is proceeding more smoothly, the minister added.
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Professor Jesper Willaing Zeuthen emphasizes that Greenlandic legislation does not allow the classic American approach of buying land and underground exploitation rights, waiting for the ice to melt. In Greenland, the land belongs to the state, and exploitation licenses are temporary and require costly activities to be maintained.
What’s next
Although GAM has financial support from the Jean Boulle Group and state funds from Denmark and Greenland, it will need to find investors to start the construction of the mine – a stage at which many previous projects have failed.