Unforgiving Terrain and Lack of Infrastructure Halt Rare Earth Mining in Greenland
The barren landscape and lack of essential facilities in Greenland are stopping anyone from establishing mines to extract the in-demand rare earth elements necessary for many advanced technology products. Even if the U.S. were to gain control of the Arctic island, these hurdles would still persist.
Tackling China's Dominance in Rare Earth Supply
Breaking China's hold over the worldwide supply of rare earths has been a priority for the U.S. administration, especially after China tightened its grip on who could purchase these elements following the implementation of broad tariffs by the U.S. The government has poured millions of dollars into this endeavor and has even invested in several businesses. The U.S. president has suggested that gaining control of Greenland could be a potential solution. But it's uncertain when, or if, Greenland will be able to produce these elements.
Obstacles in Extracting Rare Earth Elements
Several companies are attempting to mine Greenland's estimated 1.5 million tons of rare earths. However, these efforts are still in the early stages. The president's interest in Greenland may be more rooted in countering Russian and Chinese influence in the Arctic than obtaining hard-to-extract elements like neodymium and terbium, which are used in making high-powered magnets for electric vehicles, wind turbines, robots, and fighter jets, among other products.
Challenges in Building Mines in Greenland
Building a mine in Greenland is challenging due to its remoteness. Even in the populated south, there are few roads and no railways. Any mining endeavor would have to create these accessibilities. Additionally, power would have to be generated locally, and skilled labor would have to be imported.
There's also concern about mining rare earths in the delicate Arctic environment as Greenland is trying to build a thriving tourism industry. Mining these elements requires toxic chemicals to separate the minerals from the rock, which could result in significant pollution. Additionally, rare earths are often found alongside radioactive uranium.
The Complex Nature of Greenland's Rare Earths
Aside from the harsh climate that covers much of Greenland in ice and freezes the northern fjords for most of the year, the rare earths found in Greenland are often encased in a complicated type of rock called eudialyte. No one has yet managed to profitably extract rare earths from this type of rock. Elsewhere, these elements are usually found in a different rock formation called carbonatites, and there are proven methods to work with that.
Raising Funds to Build Mines
Even with promising plans, companies exploring deposits on the island are still far from actually building a mine and would need to raise at least hundreds of millions of dollars. Producing rare earths is a difficult business, especially when China floods the market with extra materials to lower prices and drive competitors out of business. Currently, most critical minerals have to be processed in China.
Looking at More Promising Projects
Many industry insiders believe that the U.S. should focus on supporting proven companies instead of trying to establish new rare earth mines in Greenland or elsewhere. Several other mining projects in the U.S. and allied nations like Australia are further along and located in much more accessible areas.
The U.S. government has directly invested in the company that operates the only rare earths mine in the U.S., as well as a lithium miner and a company that recycles batteries and other products containing rare earths.