There is growing global interest in extracting much-needed critical minerals from the Arctic to meet growing demand for a variety of metals and minerals. However, environmentalists are concerned about the impact that development in the area’s largely undeveloped protected areas could have on wildlife and the environment. Despite potentially large reserves of critical minerals, some countries have previously avoided mining and other incursions in the Arctic due to its fragile nature and a host of unknown challenges to development.
Several countries around the world are looking to develop their critical mineral mining and refining capabilities to counter China’s dominance of the market. This has led some major powers to look north to acquire vast untapped resources, especially five countries including Russia, Canada, the United States, Denmark and Norway, to assert their sovereignty and advance their strategic interests in the region.
“The Arctic is seen as a source of many different raw materials, not just oil and gas, but many strategic materials and rare earths… Greenland is currently a repository for many base metals, precious metals, gemstones, rare earths, uranium… The problem is that, until recently, it was thought to be completely unfeasible to actually mine them,” said Marc Lanteigne, associate professor at the Norwegian Arctic University in Tromso.
“But as climate changes and Arctic Ocean sailings become more frequent, especially in the summer, Greenland is starting to be looked at more carefully as a potential alternative source for many of China’s strategic supplies,” Lanting added.
Greenland’s landscape is changing rapidly due to global warming, with ice caps and glaciers melting, leaving behind wetlands, scrub and exposed rock. This means that critical minerals that were previously extremely difficult to obtain may now be possible, which is driving greater international interest in the region.
Earlier this year, US President Donald Trump suggested that the United States might take ownership of Greenland, and when he took office in January, he said that US ownership of the self-governing territory of Denmark was “absolutely necessary” for “national security and freedom around the world.” Greenland’s Prime Minister Mutt Egede quickly responded to Trump by saying the Arctic island was “not for sale.”
In October, the Trump administration discussed the possibility of buying an 8% stake in Critical Minerals Corp., which would give the United States a direct interest in Greenland’s largest rare earths project. The move follows other White House moves aimed at boosting U.S. capabilities to mine and process critical minerals to counter Chinese dominance.
Toronto-based mining and exploration company Amaroq is currently developing projects in Greenland aimed at extracting the country’s rare earths. In November, Amaroq confirmed the discovery of commercial levels of germanium and gallium, two metals widely used in electric vehicles and semiconductors, at its West Greenland hub.
Canada is seeking more Arctic investment to boost its mineral extraction capabilities and wants Ottawa to develop a national project. Prime Minister Mark Carney’s new nation-building agenda is likely to encourage more significant mining, infrastructure and defense development in the country’s Arctic region, particularly in response to Canada’s growing tensions with the United States.
Part of Carney’s potential nation-building campaign is an “Arctic Economic and Security Corridor,” which could mean developing a network of roads and ports connecting communities with the aim of driving economic development and supporting the Canadian Armed Forces in the north, with a focus on critical mineral development.
Russia, meanwhile, is exploring its Arctic potential as it owns about 40% of the land area beyond its Arctic coastline and is home to nearly three-quarters of the Arctic population. In 2020, Moscow announced its “Arctic 2035” plan, which includes infrastructure financing, economic expansion and strategic importance to national security in the Arctic region. Russia is currently building a new nuclear-powered icebreaker to access Arctic waters.
Scandinavian energy superpower Norway has also shown interest in developing Arctic assets, announcing last year plans to mine the seabed in its territorial waters extending into the Arctic. However, development work was halted after the small left-wing environmental group Socialist Left (SV) reached a deal to delay the plan in exchange for its support for the state budget. The government had planned to issue the first deep-sea mining exploration license in early 2025, a move that attracted widespread criticism around the world.
As the race to expand mining capacity for critical minerals intensifies, governments around the world are considering developing operations in previously unexplored parts of the world, with little regard for potential environmental impacts. In the face of trade wars and other rising geopolitical tensions, many countries are increasingly focused on strengthening their energy and resource sovereignty.
By Felicity Bradstock of Oilprice.com
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