COPENHAGEN, Nov 29 (Reuters) - Greenland's ruling SiumutParty retained a slim majority in a snap election called afteran expenses scandal, according to results issued early onSaturday, but its new leader Kim Kielsen will need to build acoalition to form a government.
Siumut, which has formed every single government inGreenland but one since 1979, won 34.3 percent of the vote.Opposition party Inuit Ataqatigiit, led by Sara Olsvig, won 33.2percent, Greenland's official election website showed.
Although both parties won the same amount of seats inparliament - 11 each out of a total of 31 - Kielsen is expectedto lead coalition negotiations as his party received more votes.
Greenland, whose capital Nuuk is closer to New York thanCopenhagen, became a Danish colony in the early 19th century buthas been gaining its own powers since World War Two, introducinga parliament in 1979 and self-governance in 2009.
A Siumut-led government may comfort the few foreigninvestors who have ventured into Greenland to develop mining.The party lifted a ban on uranium mining, opening the door torare earth projects which often generate uranium as a byproduct.
Inuit Ataqatigiit had vehemently opposed the lifting of theban and had promised to reinstate it, although the party waskeen to emphasise it was not against mining per se.
Greenland's vast mineral and oil potential could form thefoundation for complete independence from Denmark. But projectsare in limbo due to low commodity prices, uncertainty overregulations, as well as the sheer difficulty of dealing withGreenland's isolation and lack of infrastructure.
(Reporting by Sabina Zawadzki; Editing by Pravin Char)
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