Greenland imposes uranium mining ban, halting huge rare earths project

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Greenland's parliament has narrowly passed legislation imposing a near-total ban on uranium mining, and effectively stopping further development of the mine at Kuannersuit, one of the largest known rare earth deposits in the world.

The Kuannersuit mine, which is owned by Australian-based, Chinese-owned mining company Greenland Minerals and located near the island's southwest coast, contains a massive deposit of rare earth metals, used to produce consumer electronics, weapons and radioactive uranium. 

The measure was put forward by the ruling left-wing Inuit Ataqatigiit party, which came to power in April. The proposal to ban uranium mining was a central policy in the party's manifesto.

Read more: Greenland election casts doubt on future of its mining sector

The legislation was passed by a margin of just two votes in the 31-member Inatsisartut and bans every aspect of mining activity, including exploration, in areas containing a uranium concentration higher than 100 parts per minute (ppm), which the World Nuclear Association considers to be very low-grade.

While Kuannersuit is largely known as a rare earths project, the area contains three times the uranium concentration limit set by the ban. 

The bill also included the option to ban exploration of other radioactive minerals such as thorium.

Greenland Minerals had been seeking final approval to develop Kuannersuit, also known as Kvanefjeld, after 14 years of work and at a reported cost of around $100 million. 

The parliamentary vote came just one week after the company submitted a white paper to regulatory authorities, which it claimed addressed the concerns that had surfaced during a public-consultation period that came to an end in September. 

Locals had raised concerns about the impact that mining would have on the area, potentially throwing up radioactive dust into the air, contaminating the nearby town of Narsaq and its farming and grazing areas along with it.

Opponents to the mine also voiced concerns about the environmental threat posed by the company's plans to store mining waste, including radioactive thorium, in pools of water.

Read more: "Green mining is a myth": EU must be tougher on mining, report suggests

When the ban was first proposed, French uranium miner Orano announced it would stop its exploration activities in Greenland.

While low levels of uranium occur naturally in many parts of Greenland, other mining firms, including those engaged in rare earths exploration in the same part of the country, have said the ban will not affect them.

Nevertheless, legislators who opposed the measure, as well as several prominent geologists, said they were concerned that the limit was so low that it would hinder all development of the country’s mining sector, which all Greenlandic parties agree is crucial if the country is to wean itself off the 3.5 billion kroner (€470 million) in subsidies it receives each year from Denmark.

By Greenland Energy’s own calculations, Kuannersuit could generate 1.5 billion kroner (€202 million) for Greenland each year for 37 years, although some experts have suggested that figure is an exaggeration.

Greenland is being seen as one of the beneficiaries of global warming. As the mineral-rich island's vast ice sheets melt, mining companies seeking everything from copper to platinum to titanium to rare earths have become increasingly interested in the country. 

Currently, Greenland hosts two mines: one is for rubies and pink sapphires, the other for anorthosite, the deposits of which contain titanium.

Prior to the election in April, several exploration and mining licences had been issued in a bid to diversify its economy - which is based largely on fish and Danish government subsidies - and move towards its long-term goal of achieving full independence from Denmark.

The US has also been showing increasing interest in Greenland in recent years. In June, the Biden administration reopened a consulate on the island, and recently extended an economic aid package as part of the country's efforts to secure a supply of the critical minerals.

Read more: GM & General Electric to develop rare earths EV supply chain

In 2019, former US President Donald Trump floated the idea of buying Greenland, in order to counter Chinese dominance of the rare earths market, an offer that Copenhagen refused.

China accounts for almost 80% of the global mined supply of rare earths, a group of 17 specialised minerals. In September, it upped its annual output quotas amid a tight supply for manufacturers.

Demand for rare earths is set to rapidly soar, as they are a vital component of much of the tech needed for the green transition, such as electric vehicles and wind turbines, as well as electronic equipment.

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