Mining market in Greenland

Mining is promoted by the Government of Greenland as a key industry to diversify the economy and reduce dependency on Denmark. 

According to the Geological Survey of Denmark and Greenland (GEUS), Greenland potentially has many different mineral resources, such as copper, gold, lead, precious stones, rare-earth elements, uranium, and zinc.

Greenland’s mineral reserves are well documented and have attracted international investment, and are expected to continue to do so in the future.

The Government of Greenland has carried out several resource assessments throughout the ice-free land mass of Greenland, recognizing Greenland’s potential to diversify the national economy through mineral extraction.

Greenland currently has two operating mines, with Lumina Sustainable Materials (minority ownership by Hudson Resources) producing anorthosite and privately Norwegian-owned Greenland Ruby which produces rubies and pink sapphires.

Key projects that have received exploitation licenses and are moving forward with site commissioning include

London-based Bluejay Mining’s Dundas Project in northwest Greenland to extract titanium ore form Ilmenite clay, and Australian-owned Ironbark, which is developing a zinc-lead project at its Citronen site on Greenland’s remote north coast. 

Rare earths could become a major commodity in the country’s mineral sector, if projects such as the Australian-owned Tanbreez Kringlerne (‘Killavaat Alannguat’) and Canadian-owned Neo Performance Material’s Sarfartoq projects are developed successfully in the future. 

Key opportunities for Canadian mining suppliers

Cold climate and remote mine site construction and operations

Canadian mining supply and services (MSS) firms with knowledge and products for mine construction, solutions and equipment in harsh, cold-climate condition with limited infrastructure or access to skilled labour. This also applies to mine site operations in similar conditions, including logistics and worker and camp services, logistics. 

Community engagement and local training, particularly with indigenous communities

Greenland’s small and isolated population centers, inexperience with modern mining production and past experience as colony of Denmark can manifest as local distrust of outside companies. Canadian MSS firms with experience in developing meaningful local benefits and training programs, particularly with Indigenous communities in northern Canada, may find opportunities with international mining companies in developing their local impact benefit plans, training programs and maintaining constructive relationships with Greenlandic communities.

Notable challenges for canadian mining suppliers in Greenland

• Despite having world-class mineral deposits, Greenland’s remoteness, harsh climate and lack of infrastructure are hindrances to international mining investment, as mine developers have to invest in additional infrastructure to support their sites. Mines located outside of Greenland’s ice-free southwest coast have short sea shipping windows though with to resupply their sites or ship ore to international markets.
• Greenland’s small population and limited experience in mining means that companies have to rely on a large amount of temporary foreign workers. Work permits can take up to 3 months to be processed by Denmark’s Immigration Service (SIRI).
• For mining project owners, Greenland’s tax rate is higher than most regions and includes a surcharge when profits exceed 40%. This can be challenging for mining companies and their investors who typically rely on high profits in during high commodity prices as a cushion for volatile commodity prices. 
• For workers, the 36% income tax rate on foreign workers can be challenging. Greenland has double-taxation agreements with only Denmark, the Faroe Islands, Guernsey, Iceland, Isle of Man, Jersey, and Norway. 

Greenland business landscape

• Greenland is a self-governing part of the Kingdom of Denmark, with a population of just over 56,000 people.
• Greenland’s economy relies on subsidies from Denmark, which represents 24.3% of Greenland’s GDP, and export revenue from fishing, with mining and tourism showing promise for economic diversification.
• Improved international air connections are a priority of the Government of Greenland. New international airports in the capital Nuuk and second-largest city of Illulisat are expected to open in 2024, while a new regional airport in Qaqortoq in southern Greenland is expected open in 2025. These will enable new direct flights to North America. 

Request a meeting

To learn more about the mining industry in Greenland, request a meeting with Michael Willmott, michael.willmott@international.gc.ca, Senior Trade Commissioner, Embassy of Canada to the Kingdom of Denmark.