Greenland faces one of history’s great resource rushes—and curses
Subscribe to enjoy similar stories. A billion years ago, as one tectonic plate ripped apart from another, two chambers of magma were sealed off beneath what would later become Greenland. As thousands of years passed, the magma cooled, each layer crystallising under rarefied conditions.
Today the Ilimaussaq intrusion is a giant fold of rock beneath Gardar, in south-west Greenland. By a stroke of luck, it is home to 30 of the world’s most desired raw materials. There are, in total, 50 “critical minerals", according to a list maintained by the American government.
At present, these are mostly supplied by China. Without them a modern economy and armed forces would be crippled. Therefore Greenland’s supplies are of extraordinary importance.
Add in deposits in the east, and the territory has known reserves of 43 of the 50 minerals. Molybdenum strengthens steel for offshore wind farms. Terbium is a component of magnets in tanks.
Copper goes in everything from electrical wiring to chips for artificial intelligence. Greenland’s minerals have attracted firms backed by the likes of Jeff Bezos, founder of Amazon, and America’s Department of Defence. When he was president, Donald Trump suggested that America purchase the island.
For the moment, it is part of Denmark. Its 56,000 people may be sitting on riches. On a per-person basis, they may even face history’s greatest resource rush.
Yet, so far north, with so few people, a boom is not guaranteed. Things often go sour in resource-rich economies, a fate known as the “resource curse". Greenland is a long way from the most extreme examples, such as countries ravaged by gem-trading warlords.
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