Greenland to hold election watched closely by global mining industry-12 Apr 2021 13:39
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Wednesday, 31 March 2021 12:09 GMT
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* Greenland holds parliamentary election on April 6
* Arctic island has vast deposits of rare earth metals
* Election outcome could affect mining projects
* International investors are watching closely
COPENHAGEN, March 31 (Reuters) - Greenland holds an election next week that could decide the fate of vast deposits of rare earth metals which international companies want to exploit and are vital to the Arctic island's hopes of economic recovery and independence.
The government called the April 6 snap parliamentary poll after a junior coalition partner quit in a dispute caused by growing public concern over the potential impact of a big mining project on Greenland's pristine environment.
Though Greenland is home to just over 56,000 people, the fallout from the election will be felt far beyond its borders because it has what the U.S. Geological Survey says are the world's biggest undeveloped deposits of rare earth metals.
As climate change and melting ice make access to the Arctic cheaper, international mining companies are racing for the right to exploit these deposits, which include neodymium, used in wind turbines, electric vehicles and combat aircraft.
But opinion polls show the biggest party in the next parliament could be Inuit Ataqatigiit (IA), which opposes the major rare earth mining project at Kvanefjeld in southern Greenland because the site also contains radioactive materials.
If IA can form a coalition, it is possible that the project will be halted or delayed, with potential repercussions for global mining investors.
Acting Minister of Resources Vittus Qujaukitsoq has warned that if Greenland backtracks now, it could scare mining investors away, and "the credibility of the whole country is at stake."
Such an outcome could also dent hopes of reviving Greenland's fragile economy, built mainly on expected mining revenues.
"If we don't attract capital and create new jobs, I'm not sure what the future looks like for our country," Jess Berthelsen, head of Greenland's biggest labour union SIK, told Reuters.
https://news.trust.org/item/20210331110510-1v6gc/
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