The United States is saber-rattling over Greenland once again. The vast island’s natural resources are back on the agenda, a year after then–US national security advisor Michael Waltz announced: “This is about critical minerals. This is about natural resources.”
Greenland is endowed with both fossil fuels and critical raw materials. It possesses at least twenty-five of the thirty-four raw materials considered critical by the European Union.
The EU’s 2024 Critical Raw Materials Act seeks to improve European supply security of these, and both US President Donald Trump and the EU want to weaken Chinese dominance in the trade. Meanwhile, vast amounts of oil are found offshore across eastern and western Greenland.
The value of these resources is hard to estimate as the prices of oil and critical raw materials fluctuate wildly. Like with Venezuela’s oil, it will take an enormous amount of money to build the infrastructure needed to mine the natural resources in Greenland. Mining and fossil fuel projects are capital-intensive, requiring large upfront investments with long lead times before projects yield profits.
Outside its capital, Nuuk, there is almost no road infrastructure in Greenland and limited deepwater ports for large tankers and container ships.
Around the world, private mining and fossil fuel corporations can exploit public infrastructure such as roads, ports, power generation, housing, and specialist workers to make their operations profitable. In Greenland, huge capital investment would be required to extract the first truckload of minerals and the first barrel of oil.
As such, the government faces a classic dilemma. Let private multinationals extract but lose the lion’s share of revenues? Or insist on state ownership but struggle to find the capital and state capacity to enable extraction.
Greenland’s mineral riches have been known about for some time. In April 2025, Danish state broadcaster DR aired a documentary about how Denmark had…
Auteur: Lukas Slothuus
