Thread by @WholePicture_

Significant deposits of rare earth metals in high demand around the world could pave the way for Greenland to gain independence from Denmark.

nzz.ch/international/…

But mining the ores harbors ecological and political risks. The largest mining project is on the brink after a change of power.

The Kuannersuit / Kvanefjeld deposit near the town of Narsaq on the southern tip of Greenland is one of the world's largest deposits of so-called rare earths.

These metals are enjoying huge international sales because they are used in environmentally friendly technologies. Mining the ores could make Greenland rich and give the island the long-awaited political and financial independence from Denmark.

In the Narsaq settlement, not far from the Kvanefjeld project, there are fears of dust emissions from the extensive earthworks. Concerns are also raised about the use of aggressive chemicals required for mining and the storage of ore waste.

Even radioactivity is involved, because uranium is also found in the deposit. Not all trust the mining company's assertion that it will be possible to work with minimal ecological side effects.

This toxic cocktail of questions was essentially the subject of the early parliamentary elections that took place in Greenland on Tuesday.

The left-green Inuit Ataqatigiit party won a landslide with 37 percent of the vote and will probably be able to form the new government with a second partner.

The Siumut party, which is oriented towards social democracy and has practically always been part of the executive since the introduction of Greenland self-government in 1979, has to step into the second ranks for once.

In the large community of Kujalleq in southern Greenland, with the local population centers of Narsaq and Qaqortoq, the majority of the project is now being rejected - also because it is feared that it will turn traditional life upside down.

In contrast, the general population of Greenland tends to support it.

The left-green election winner Inuit Ataqatigiit is particularly a thorn in the side of the mine’s uranium components.

While the previous government, led by Siumut, was positive about the mining project, the election winner is campaigning for a moratorium on the question of uranium mining.

That would de facto mean a halt to the project. You can't just leave the uranium in the ground and just get the undisputed remainder of the minerals you're looking for.

Without the income from the Kvanefjeld project, however, another political goal of the Left Greens and other parties will vanish in the far distance: the separation from Denmark.

Greenland is supported by Copenhagen with annual subsidies of around CHF 550 million. That covers about half of the island's public spending.

Greenland Minerals, the Australian company that wants to operate the Kvanefjeld mine, is predicting tax revenues of up to CHF 200 million annually for the Greenland government over several decades, given the "unprecedented scale" of the resources there.

The mining project would be a gold mine that would bring Greenland much closer to the dream of independence. It would also be a source of income to reduce the previously one-sided dependence on fishery exports.

These account for 88 percent of total exports worth around CHF 400 million a year.

In addition, it is difficult to plan for the long term because the world market prices for fish and seafood fluctuate sharply.

Not far from the Kvanefjeld deposit is another deposit, Killavaat Alannguat / Kringlerne. The Australian mining company Tanbreez is at work there.

The Tanbreez project between Narsaq and Qaqortoq is estimated to be potentially as rich as Kvanefjeld, but has a different geological structure and, above all, does not contain uranium.

While it is a step further with the permits, it lacks the financial backing. This is what Tanbreez boss Greg Barnes is looking for in the USA.

The Chinese are also on board for the Kvanefjeld project through the operating company Greenland Minerals and its main shareholder Shenghe Resources.

And while Tanbreez is looking to the USA for donors and sales markets, the EU has also already kept an eye on the Greenland projects. Brussels sees an opportunity here to reduce its dependence on China for critical raw materials for the “green economy”.

But if Greenland catapults itself with its mining into the center of the global competition for critical raw materials, the government in Nuuk will have to prepare for enormous leverage.

For the time being, these will be cushioned by the Kingdom of Denmark. Dealing with them on its own after independence would be an even greater challenge for Greenland.