Greenland’s court fight with Chinese-owned miner keeps valuable project closed

A lawsuit filed by the Chinese-owned company London Mining against the Greenland Self-Government Naalakkersuisut has stalled the reopening of one of Greenland’s most resource-rich areas, Isukasia, reports the Greenlandic newspaper Sermitsiaq. The project has been touted in Chinese media as the first Arctic mining project run by an Asian/Chinese company, which was seen as a symbolic milestone for Beijing’s Polar Silk Road narrative. The dispute, which began after the company lost its mining license in 2021, has now been further delayed as courts must first decide whether London Mining can gain access to the government’s internal documents.

London Mining, whose ownership links trace back to Chinese investors, had held an exploitation license for the iron ore deposit at Isukasia, 150 kilometers northeast of Nuuk. The company was ordered in November 2021 to return its license after repeated delays and failures to deposit the required security funds. In response, London Mining sued the Self-Government the following year, claiming it was unlawfully stripped of its rights and demanding either the return of its license or 20 million Danish kroner (3 million USD) in compensation.

Naalakkersuisut argued that the company had failed to make progress despite multiple extensions and reminders.

“We cannot accept that a license holder repeatedly fails to meet agreed deadlines,” said Naaja H. Nathanielsen, Greenland’s Minister for Minerals, at the time.

The main legal question, whether London Mining is entitled to an extension or compensation, could have been settled in 2024 or 2025. But the company’s request for access to internal government correspondence has complicated proceedings. Naalakkersuisut maintains that such internal documents are exempt from disclosure under Greenlandic law, calling the issue “principally important” for the functioning of the public administration.

While the High Court of Greenland reviews the access request, the primary lawsuit remains on hold. The Isukasia area, which spans 290 square kilometers, remains closed to new exploration or mining permits until the legal battle concludes, according to the Ministry of Minerals.

From 2015 to its revocation in 2021, Isukasia was treated as a vital part for Chinese foray into Greenland’s minerals and its broader strategy to secure critical mineral supplies globally.