An Australian rare earth minerals project mired in legal dispute in Greenland could be resuscitated, with voters on the Arctic island throwing their support behind business- and mining-friendly interests.
Supercharging the election and making independence from Denmark the hot-button issue, was US President Donald Trump’s declared interest in taking control of the mineral-rich Danish territory “one way or the other”.
The campaign was run amid a web of geopolitical tensions including new American tariffs on steel and aluminium levelled at several countries including Australia.
In a surprise result on Tuesday, the mineral sector-aligned centre-right Demokraatit, or Democrats, tripled their support, winning 30 per cent of the vote and 10 seats.
The party is courting coalition partners and needs a further six seats to take control of Greenland’s 31-member parliament.
Ousted from office is the environmentally conscious left-wing Inuit Ataqatigiit and potentially, its veto on uranium extraction.
Since 2021, the ban has effectively halted a major rare earth project at Kvanefjeld, in the island’s south, which is owned by Australian company Energy Transition Minerals and has uranium as a by-product.
The Perth junior miner commenced legal action accusing the former government of “moving the goal posts” and damaging foreign investor confidence.
Company executives visited Greenland in February seeking a “new dialogue” and “negotiated outcome”.
Demokraatit leader Jens Frederik Nielsen, 33, is a former raw materials and industry minister and his party has promised to cut red tape and lower corporate taxes.
Its election manifesto characterised the current mining legislation as far too strict and flagged potential changes to make it more flexible and efficient.
“Raw materials are worth zero as long as they remain in the ground but could potentially be worth billions if we have the courage and willingness to work with international companies to pull them out,” the party’s campaign policy statement says.
Greenland only has one active mine.
University of Greenland associate professor Rasmus Leander Nielsen says the Democrats are keen to diversify Greenland’s economy, which is heavily reliant on fish exports and a block grant from Denmark.
“The Demokraatit have been somewhat open to that specific mining project,” he told reporters in Copenhagen on Wednesday.
Danish Institute of International Studies senior researcher Ulrik Pram Gad told AAP it was “not impossible” for the Australian mine to get the go-ahead following the change of government.
However, he notes that it much depends on Demokraatit’s choice of coalition partners.
That said, the obvious pick – the environmentalist Inuit Ataqatigiit, which still has seven seats – is unlikely to drop its opposition to the mine.
Energy Transition Minerals said it would seek to establish “a constructive working relationship” with the new government after coalition negotiations were complete.
“Economic development is vital for realising the aspirations of the people of Greenland and the … project has the potential to make a significant long-term contribution to the economy,” the company said in a statement.
The autonomous Danish territory of 57,000 people had a 70 per cent voter turnout.
Between the Arctic and Atlantic oceans, the world’s biggest island has been controlled by Denmark for about 300 years.
It governs its own domestic affairs but its foreign and defence policies are formulated in Copenhagen.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
