Venturing into Greenland's Solitary Operational Mine: The Challenges of Mining in Remote Territories

While Greenland is rich in precious minerals, extracting them presents significant difficulties due to a lack of necessary infrastructure and resources.

Greenland's Harsh Landscape

Greenland presents one of the toughest logistical challenges for mining due to its absence of connecting roads, limited workforce, and unpredictable weather conditions that can abruptly halt activities.

Nonetheless, global leaders and investors are keenly focusing on its bountiful natural reserves, which consist of copper, zinc, graphite, gold, and rare earth elements pivotal in sectors like construction, electronics, and defense.

In light of international efforts to distance supply chains from China, Greenland is coming into the spotlight as a viable option. This interest heightened after past remarks suggesting the US purchase Greenland, which underscored its strategic and resource value.

The Only Active Mine

Currently, only one mine remains fully functional in Greenland. Journalist Sarah Andersen visited in June to uncover why this operation persists where others have not and to explore why the wealth of minerals does not reflect a thriving mining industry.

Bent Olsvig Jensen of Lumina Sustainable Materials emphasizes the need for comprehensive forward planning due to the unique challenges of Greenland's remote mining landscape.

"Anticipation is key here because logistical delays can hold up spare parts delivery for extended periods," Jensen explained.

Lumina, which manages the solitary active mine deep within an inaccessible fjord, extracts anorthosite, an industrial mineral critical for making fiberglass and construction materials.

Challenges in Infrastructure and Logistics

Infrastructure is minimal; apart from a few built structures like a camp, processing plant, and small harbor, nothing else supports the site. Supplies and personnel only arrive via ship when the waters permit or by helicopter when ice renders fjords impassable.

Dennis Jensen, no relation to Bent Jensen, who manages site operations, highlights the ongoing struggle with logistical challenges, especially in harsh winters where temperatures drop drastically, halting outdoor work.

The Long Road to Mining Approval

Naaja Nathanielsen, the minister responsible for Greenland's resources, notes the grueling 16-year journey from conception to operation for most mining ventures. This lengthy process is primarily financial, as securing sustained investment is difficult.

Lumina's own journey took 11 years from exploration in 2008 to production commencement in 2019.

Overcoming Geographic and Financial Hurdles

According to Majken Djurhuus Poulsen, a geologist, Greenland's ancient geology presents varied but challenging exploration conditions, limiting activity to ice-free months each year. Costs soar due to remote site access and lack of existing infrastructure.

Seeking Patient and Risk-Resilient Investors

The region's mining ambitions depend heavily on foreign investment due to limited local capital. Investors need patience, as returns may take years to materialize, as emphasized by James Kiernan, from Cordiant Capital.

Maintaining Standards and Future Prospects

Greenland continues to uphold stringent environmental and social standards. Projects must demonstrate job creation for locals and environmental protection, or face resistance.

Even though Lumina is yet to see profitability, its strategy and governmental collaboration lay the groundwork for future endeavors, such as an exploration license for rare earth elements.

While multiple mines could promise a prosperous future for Greenland, an explosive growth in the industry is improbable in the near future.

"Greenland's growth will be gradual, aligning with its societal and policy framework," Bent Jensen remarked. "We expect progress, but one step at a time."