Tech Explained: Global AI race makes Greenland’s critical minerals a tempting target in Simple Terms

Though Greenland has over 140 active mineral licenses, which must be issued before mines can be constructed, there are only two active mines in Greenland today.

CEO Eldur Olafsson of Amaroq Ltd., the company behind one of the two active mines, argues his company’s gold mine in southern Greenland proves that Greenlandic mining operations are possible with the right approach.

“Denmark is not really a resource-driven country, so the capital support up until this date has not been enough to get more mining going,” Olafsson told NBC News. “For mining you need more than money. You also need people. You need to physically move people and build infrastructure, make roads, bridges, harbors, all of these different things.”

Even Greenland’s harsh climate and sparse population — around 60,000 people live across the territory — do not dissuade Olafsson. “It’s important to remember that Alaska, Canada, Norway, Sweden and Russia all have mines, some very big mines, across the Arctic region. These are among the best mines you can find in the world.”

“We always need new mining areas, or we need to reprocess metal, to have enough metal for the revolution that is coming, which is AI and similar technology.” Olafsson said.

Yet even after a mine is operational, fluctuations in mineral prices can force mines to shutter — as happened with the Black Angel lead-zinc mine at Maarmorilik in west Greenland. Operational from 1973 until 1990, the mine was shut down with substantial untapped reserves but failed to reopen due to low zinc prices.

To support America’s rare earth industry and address this price sensitivity, the Department of Defense in July entered into a unique 10-year public-private partnership with American mining company MP Materials to bolster America’s rare earth supply chain and wean America’s magnet supply chains off of Chinese sources with a rare earth mine in Colorado.