Greenland grants mining permit for major metal extraction project in Northeast

Greenland has taken a major step in expanding its mineral extraction industry. The government has granted Greenland Resources A/S a license to mine molybdenum and magnesium near Mestersvig in the country’s remote northeast. The decision was announced Thursday and reported by KNR, Greenland’s national broadcaster.

The permit was formally signed by Naaja Nathanielsen, Minister for Business, Minerals, Energy, Justice, and Gender Equality, and representatives of Greenland Resources A/S, a Canadian-owned company with experience employing Indigenous workers in the mining sector.

While the company has not yet specified a start date for operations, it expects the project to last up to 20 years once underway. According to company chairman Ruben Shiffman, the mine could generate $700 million USD in annual revenue and contribute roughly $1 billion USD to Greenland’s economy through tax payments over the life of the project—equivalent to about 6.5 billion DKK.

“Those revenues will benefit Greenland through the company’s tax contributions,” Shiffman told KNR.

Economic impact

The next phase of the project involves securing investment to fund its launch. Once financing is in place, Greenland Resources plans to send personnel to Greenland to train local workers who will be employed at the site.

Minister Nathanielsen welcomed the agreement, citing both economic and social benefits.

“We benefit in several ways,” she said. “The company will create jobs, trade locally in Ittoqqortoormiit, and award contracts to local and private businesses in the municipality.”

The project represents one of the most ambitious resource extraction efforts Greenland has undertaken in recent years. It comes amid continued debate over how to balance economic development with environmental protection and the rights of local communities.