COPENHAGEN (Reuters) – A left-wing party opposed to a major rare earth mining project has become the largest in parliament after securing more than a third of the vote in a quick election.
The result of Tuesday’s election casts doubt on the mining complex at Kvanefjeld in the south of the North Pole Island and sends a strong signal to international mining companies that want to utilize Greenland’s enormous untapped mineral resources.
The Inuit Ataqatigiit (IA) party won 37% of the vote, compared to 26% in the previous election four years ago, and surpassed the ruling Social Democratic Siumut party which, according to official results, secured 29% of the vote .
The pro-mining party Siumut has mostly come to power since 1979.
Although not directly opposed to mining, the IA has a strong environmental focus. It campaigned to stop the Kvanefjeld project, which contains not only rare earth, including neodymium – which is used in wind turbines, electric vehicles and fighter jets – but also uranium.
“This will undoubtedly hamper the development of mining in Greenland,” said Mikaa Mered, lecturer on Arctic affairs at the HEC Business School in Paris.
While most Greenlanders view mining as an important path to independence, the Kvanefjeld mine has been a point of contention for years and sows deep divisions within the government and the population over environmental issues.
“It’s not that Greenlanders do not want mining, but not dirty mining,” Mered said, referring to uranium and rare earth projects. “Greenlanders are sending a strong message that it is not worth sacrificing the environment for them to achieve independence and economic development.”
CHALLENGES AHEAD
The island of 56,000 people, hosted by former US President Donald Trump in 2019, is part of the Kingdom of Denmark but has broad autonomy.
IA leader Mute Egede, 34, will first try to form a new government. The potential ally of the government could be the Naleraq, an independence party that also opposes the Kvanefjeld project.
Support from Prime Minister Kim Kielsen and his ruling Siumut party helped licensee Greenland Minerals 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 the preparation of the mine and has proven processing technology through its Chinese partner Shenghe Resources.
“The challenge for IA will be to explain to the world that Greenland is still open for business and remains an attractive mining law area,” said Dwayne Menezes, head of the London think tank Polar Research and Policy Initiative.
Reporting by Jacob Gronholt-Pedersen; Edited by Andrew Heavens and Timothy Heritage