NUUK — Beneath the feet of Greenland’s inhabitants lies a true fortune: gold, rubies, copper, nickel, uranium and those rare-earth minerals prized in global tech markets. Countries like China and Australia, along with the European Union, have had their eyes on Greenland’s natural wealth for years.
And then, U.S. President Donald Trump has begun pushing the idea that Greenland should become part of the United States: not just for security reasons, but almost certainly because of its valuable resources.
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Climate change may make these deposits easier to access. The massive ice sheet that covers roughly 80% of the island is melting, potentially exposing previously unreachable mineral reserves. Yet despite this immense potential, Greenland has only one active mine, still under the Danish Kingdom. Meanwhile, many Greenlanders continue to live in poverty.
So why isn’t anyone tapping into this wealth beneath their feet? And what could be done with it? These questions are central to Greenland’s national election Tuesday, and could play a decisive role in shaping the island’s future.
Naaja Nathanielsen is eager to attract investors. “Our mineral resources are of the highest quality,” Greenland’s Minister of Raw Materials stated in early February from her office in Nuuk, the island’s capital. “Countries that are truly committed to a green future should be investing here now.”
Some of these resources, particularly rare earths, are critical for producing electric vehicles and other clean technologies.
Even when Trump’s interest in Greenland made headlines, Nathanielsen wrote in The Washington Post that while Greenland had no desire to become part of the U.S., investments in its mineral sector would be more than welcome.
Greenland could certainly use the financial boost. The island’s economy is struggling. Its gross domestic product lags behind that of the much smaller Faroe Islands, also part of the Kingdom of Denmark. The average annual income is about €39,000, while the poverty rate — 17.4% — is significantly higher than Denmark’s (11.8%).
Greenland, the world’s largest island at over 2 million square kilometers, is home to just 57,000 people scattered along its rugged coastline. Infrastructure is limited; there are few roads, and most travel is by boat, plane or helicopter. Though geographically part of North America, Greenland was a Danish colony from the 18th century onward. It gained self-governance in 1979 and has administered itself within the Danish Kingdom since 2009.
Denmark’s umbrella
A large portion of Greenlanders are of Inuit descent, and for many, hunting and fishing are not just pastimes but essential to survival. Fishing dominates the economy, accounting for around 90% of Greenland’s exports.
Denmark provides roughly €500 million in subsidies, covering half of Greenland’s entire budget.
Still, the industry’s revenues are insufficient to sustain Greenland’s government. Every year, Denmark provides roughly €500 million in subsidies, covering half of Greenland’s entire budget. Greenlanders receive free healthcare, free education (even in Denmark, where many who leave end up staying), and security under Denmark’s defense umbrella.
Yet this dependence on Denmark also helps explain why the island remains poorer than its potential suggests. “Thirty percent of people here are struggling,” says Steven Arnfjord, a social scientist and director of the Center for Welfare at the University of Greenland.
He isn’t just referring to financial hardship. While walking through Nuuk, he points to remnants of the colonial past — evidence, he argues, of how damaging that era was for Greenlanders, particularly during the transition from colony to Danish province in the 1960s and 1970s.
Cultural clash
High suicide rates, school dropouts and alcohol abuse are also part of Greenland’s reality.
A short walk from Nuuk’s modern city center, a different side of the capital emerges. Gray apartment blocks dominate the view, occasionally brightened by street art murals, but none of the picturesque wooden houses seen on postcards are in sight. Arnfjord describes how forced resettlements disrupted traditional Inuit lifestyles. Families accustomed to hunting seals near their homes were relocated to prefabricated apartment complexes.
“Some never adapted,” he says. “Instead of gutting the seals outside as they had always done, they dragged the 100-kilogram animals up to their third-floor apartments and butchered them in their living rooms.” The cultural clash was stark.
The long-term effects of this displacement are still visible today. Greenland has the world’s highest suicide rate, high school dropout rates, and significant alcohol abuse problems, often linked to domestic violence.
Who should they negotiate with?
Arnfjord walks along Nuuk’s snow-covered main street. “Keep your eyes open,” he says, “and you’ll see it.” A few moments later, Greenland’s most well-known hotel, the Hans Egede Hotel, comes into view.
Earlier this year, Donald Trump Jr. visited Nuuk, hosting a Greenlandic buffet featuring whale meat and halibut at the hotel’s restaurant. He invited homeless individuals to join him and handed out MAGA caps. Though his visit was officially “private,” it sparked a media frenzy. Soon after, U.S. YouTubers arrived, offering young Greenlanders dollar bills to say, “Buy us,” on camera.
Despite the spectacle, public opinion remains clear: 85% of Greenlanders do not want to become part of the United States. Quite the opposite: Many are pushing for greater independence. Greenlanders will elect a new parliament on March 11, and all major parties support full sovereignty from Denmark.
Greenland isn’t exactly the first choice for investors.
But how can independence be achieved when the island remains financially dependent on Denmark? In theory, Greenland’s vast mineral wealth could be the key. Yet mining remains a negligible sector. The only active mine currently extracts anorthosite, a mineral not even classified as critical. While dozens of exploration and extraction licenses have been issued, few have been used.
“Greenland isn’t exactly the first choice for investors,” says Florian Vidal, a political scientist at Norway’s Arctic University in Tromsø. The island, he explains, lacks the necessary infrastructure for large-scale mining. Until last year, Nuuk’s airport couldn’t accommodate larger aircraft. Transporting resources from inland mines to coastal ports is a costly logistical challenge.
Huge financial gap
Another issue? Greenland’s small population. With a workforce comparable to a small town, large-scale mining operations would require an influx of foreign labor, potentially disrupting Greenland’s tight-knit social fabric.
Political uncertainty further discourages investors. “As long as Greenland isn’t fully independent, investors don’t know whether to negotiate with Nuuk or Copenhagen,” Vidal points out. And in mining, investments only start paying off after an average of 16 years: Long-term stability is crucial.
Since 2010, Greenland’s government has been responsible for issuing mining licenses, but geopolitical tensions complicate matters. When Nuuk sought a contractor to build its new airport, Denmark blocked a Chinese firm from securing the deal at the United States’ request.
Greenland has also set strict environmental and social standards for mining projects. Policymakers are wary of harming the environment, which could threaten the fishing and tourism industries. The debate over Kuannersuit, one of the world’s richest rare earth deposits, illustrates this dilemma.
An Australian company spent a decade preparing to mine the site, a project that could generate revenue equivalent to one-fifth of Denmark’s annual subsidies. But in 2021, Greenland’s ruling party Inuit Ataqatigiit banned uranium mining, a byproduct of the project. That decision won them the election, but the mining company is still battling Greenland in court over the restriction.
So why is Greenland struggling to attract investors? Nathanielsen spreads her arms in explanation. “It’s an international issue,” she says. “On one side, we have Greenland, sitting on valuable resources. On the other, countries eager to obtain them. And in between? A huge financial gap.” For now, Greenland is relying on private investors to bridge that gap. If they don’t step in, Greenland’s treasures will remain buried underground.
