COPENHAGEN (Reuters) – A left-wing party opposing a major rare earth mining project has become the largest in parliament after getting more than a third of the vote in a speedy election.
The result of Tuesday’s election calls into question the Kvanefjeld mining complex in the south of the Arctic island, and sends a strong signal to international mining companies that want to exploit Greenland’s vast untapped mineral resources.
The Inuit Ataqatigiit (AI) party got 37% of the vote, compared to 26% in the last election four years ago, beating the Social Democrat party Siumut, which got 29% of the vote, according to official results.
The pro-mining party Siumut has been in power most of the time since 1979.
While not directly opposed to mining, AI has a strong environmental focus. He has campaigned to stop the Kvanefjeld project, which apart from rare earths such as neodymium, which is used in wind turbines, electric vehicles and fighter jets, also contains uranium.
“This will certainly hinder the development of mining in Greenland,” said Mikaa Mered, a professor of Arctic affairs at the HEC business school in Paris.
While most Greenlanders see mining as an important path to independence, the Kvanefjeld mine has been a point of contention for years, sowing deep divisions in government and population over environmental issues.
“It’s not that Greenlanders don’t want mining, but they don’t want raw mining,” Mered said, referring to uranium and rare earth projects. “Greenlanders send a strong message that it is not worth sacrificing the environment to achieve independence and economic development.”
CHALLENGES AHEAD
The 56,000-person island, which former U.S. President Donald Trump offered to buy in 2019, is part of the Kingdom of Denmark but has broad autonomy.
AI leader Mute Egede, 34, will be the first to try to form a new government. A potential ally of the government could be the Naleraq, a pro-independence party that also opposes Kvanefjeld’s project.
The support of Prime Minister Kim Kielsen and his ruling Siumut party helped Greenland Minerals licensees obtain preliminary approval for the project last year, paving the way for a public hearing.
The Australian firm has already spent more than $ 100 million on mine preparation and has demonstrated processing technology through its Chinese partner Shenghe Resources.
“The challenge for AI will be to explain to the world that Greenland is still open to business and is still an attractive mining jurisdiction,” said Dwayne Menezes, head of the London-based Polar Research and Policy Initiative think tank.
Report by Jacob Gronholt-Pedersen; Edited by Andrew Heavens and Timothy Heritage