Greenland needs US, EU commitment to buying critical minerals, top banker says

Greenland needs purchase commitments from either the US or the European Union to unlock investments into critical minerals, according to the head of the island’s largest bank.

Greenland’s critical raw materials provide a “new opportunity” to bolster the territory’s economy, and a chance for western powers to wean off dependence on China for key resources, said Bank of Greenland chief executive officer, Martin Kviesgaard.

A recent increase in international interest in Greenland’s mineral wealth, including by US President Donald Trump and his administration, has yet to be translated into activity on the ground. In the latest overture, Usha Vance, the wife of Vice President JD Vance, will travel with her son and a delegation to Greenland on Thursday on a trip that’s been billed as a private visit.

While the island has ample untapped mineral reserves that are becoming more accessible due to climate change — and potential to be a strategic supplier — production costs are high and its minerals aren’t concentrated enough to have already attracted large-scale investments.

Without guaranteed buyers, commercial extraction of critical raw materials remains so risky that investments may not get off the ground, Kviesgaard said in an interview in Nuuk.

“What we’re missing is the EU or the US stepping up and saying, ‘We’ll take these raw materials,’” he said. “China has built its dominance in the sector by doing exactly that. We need a new way of thinking about how to become independent from China, and that could be by making concrete buyer agreements.”

The US and EU are both racing to secure critical minerals and dial down their reliance on Beijing, which currently dominates the global supply of rare earths used in everything from electric vehicles to wind turbines.

Greenland is betting on its mining industry as key route to building a sustainable economy before breaking away from Denmark. Today, its economy is largely dependent on fishing and support from the government in Copenhagen, which provides an annual grant of around $600 million and also pays for areas such as policing and defense.

The island’s incoming government must work to improve the legal framework for mining projects, said Kviesgaard, who spoke to Bloomberg days after the general election earlier this month. The Bank of Greenland plays a key role in supporting local businesses that provide infrastructure and services to large-scale projects like mines.

The lender, which mostly operates as a retail bank, has a market value of about $220 million, having seen its stock rise more than 20% this year on the back of growing US interest in the self-ruling territory.

While mineral extraction requires long-term commitments, tourism presents a more immediate economic opportunity, Kviesgaard said. Major investments are needed into accommodation, restaurants and attractions to support the influx of tourists, which is expected to rise with the opening of direct flights from the US this summer.

This month, a general election on the island ended with three in four voters backing parties that support a gradual pathway to sovereignty rather than a swift break from Denmark. The outcome has calmed investors, who had been rattled by Trump’s talks of taking control over the world’s largest island.

“My horror scenario was something similar to Brexit: a headlong withdrawal from the commonwealth without any solutions,” Kviesgaard said, adding that it would have sent Greenland into “extremely turbulent and risky” period. “I consider this scenario to be off the table with the election result. It provides peace of mind for both investors and funding sources.”

(By Sanne Wass)

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