EU to fund Greenland mining project for the first time
KNR reports that the European Union will, for the first time, directly finance a mining project in Greenland under its newly adopted REEsourcesEU strategy. The decision directs European Investment Bank funding to the Malmbjerget project in Northeast Greenland, where deposits of molybdenum and magnesium are viewed as strategically important for European industry and defence.
Greenland Resources received an extraction licence for the site in June and the Greenlandic government has welcomed the EU’s new approach. Naaja Nathanielsen of IA, the minister for resources and business, expresses her satisfaction in the government’s press release:
“EU’s new resource strategy is a huge step in the right direction. It has not previously been possible for the EU to support mining projects directly, which has been a barrier in the ongoing race for access to minerals,” she wrote.
The amount of EU funding has not yet been disclosed. Before mining can begin, the company must still complete an environmental impact assessment and a societal sustainability assessment, both of which will undergo public hearings next year. A mine plan and closure plan must also be agreed with the government and the local municipality.
