Greenland election casts doubt on future of its mining sector

A left-wing political party opposed to a big mining project has won the Greenland election after securing more than one-third of the votes in the recent snap election.

The victory of the Inuit Ataqatigiit (IA) party with a 37% majority may cast into doubt the Kvanefjeld mining complex in the south of the country which is one of a number of initiatives to exploit Greenland's relatively untapped and vast natural resources, particularly rare earths.

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IA won a victory over the centre-left social-democratic and pro-mining Siumut party, which has been in power since 1979.

The Kvanefjeld mining complex is currently owned by Australian mining company Greenlandic Minerals and has divided the nation's politics for the past decade.

It has already spent more than $100 million (€84.1 million) preparing the mine and has proven processing technology through its Chinese partner Shenghe Resources.

Many locals see the mining industry as essential in it becoming economically independent from Denmark, but the mine has been a contentious topic for years.

The nation is only home to 56,000 people and has a flourishing independence movement despite its relative autonomy from Denmark.

It is significant for the global mining industry but has yet to be opened. The mine being greenlit was one of the primary reasons for the snap election which was held on Tuesday.

Greenland's Prime Minister Kim Kielsen, who paved the way for the project's approval, lost the leadership of Siumut to Erik Jensen, a forward secretary for the party in late November.

Kielsen expressed doubt about the mine, which caused his coalition partners, the Demokraatit party, to leave the government, costing Kielsen his majority.

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The IA themselves are not directly opposed to mining in Greenland but have a strong environmental focus, which puts them at odds with much of the mining sector, which is considered to be a "high-risk" sector for decarbonisation as well as its exploitation of natural resources.

Its leader Mute Egede will be the first to form a new government and may look to Naleraq, a pro-independence party that also opposes the Kvanefjeld mine.

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