President Donald Trump announced on Wednesday that he had reached a framework agreement with NATO concerning Greenland’s future, which will involve rights concerning rare-earth minerals.
“They will be involved with the mineral rights, and so will we,” Trump stated about NATO and the US in an interview with CNBC following his initial disclosure on Truth Social.
He did not elaborate on any specific prerequisites. However, Greenland’s untapped mineral wealth has propelled the island to the top of Trump’s aspiration list for empire-building.
Trump administration officials view Greenland’s subterranean riches as a means to diminish China’s dominance over rare-earth metals, which are vital for everything from fighter jets and lasers to electric vehicles and MRI scanners.
Trump played down the significance of Greenland’s natural resources, including during his address at the World Economic Forum in Davos, Switzerland, on Wednesday, when he asserted that securing rare-earth minerals was not the primary reason the US needed the territory.
“Everyone talks about the minerals. There are so many of them,” Trump commented. “The rare earths aren’t rare. The processing is rare. But there are so many rare earths there. To get to that rare-earth ground, you have to go through hundreds of feet of ice. That’s not why we need it. We need it for strategic national and international security.”
President Donald Trump speaks during the 56th annual meeting of the World Economic Forum in Davos, Switzerland.
President Donald Trump speaks during the 56th annual meeting of the World Economic Forum in Davos, Switzerland. Laurent Gillieron/Keystone/AP
Yet, hours later, Trump claimed the Greenland deal has two components: his “Golden Dome” missile defense concept and the minerals. This aligns with what his former National Security Advisor, Mike Wotz, told Fox News in 2024, when Wotz stated the administration focused on Greenland for “critical minerals” and “natural resources.”
The reality is that Denmark’s ownership of Greenland does not preclude the United States from accessing the island’s treasure trove. The challenge lies in the harsh Arctic environment.
“Utterly Insane”
Researchers contend that extracting Greenland’s minerals would be exceptionally difficult and costly, as many of the island’s mineral deposits are situated in remote regions above the Arctic Circle, under a mile-thick polar ice sheet, and shrouded in darkness for much of the year.
Moreover, Greenland, a self-ruling territory of Denmark, lacks the infrastructure and labor force required to realize this mining ambition.
“The concept of turning Greenland into an American rare-earth factory is science fiction. It’s simply insane,” remarked Malte Humpert, founder and senior fellow at the Arctic Institute. “You might as well try mining the moon. In some ways, it’s worse than the moon.”
Despite its name, approximately 80% of Greenland is covered by ice. And mining—or nearly anything else—in the Arctic can cost five to ten times more than in other parts of the globe.
Trump’s interest in Greenland is not new—nor is he the first US president to desire the island.
For years, if not decades, officials in Greenland have courted foreign direct investment. Greenlanders suggest they are already open to business prospects without any aggression.
The “Pot of Gold” Myth
Experts suggest that persuading American businesses to take a gamble in Greenland is wishful thinking.
“If there were a ‘pot of gold’ at the end of a rainbow in Greenland, private ventures would already have gone there,” commented Jacob Funk Kirkegaard, a non-resident senior fellow at the Peterson Institute for International Economics.
However, Funk Kirkegaard, who previously worked at the Danish Ministry of Defence, stated that it is “very hard” to justify the business case for the massive initial investment that would be necessary.
It’s possible Trump is trying to provide financial incentives and guarantees to lure American companies into such extensive investments, similar to the reassurances large oil companies seek to aggressively drill in Venezuela.
“If private business got enough taxpayer money, they would be willing to do almost anything,” Funk Kirkegaard noted. “But is that a good basis for buying up a territory? The answer is no in Greenland, just as it is in Venezuela.”
Environmental Factors
The climate crisis has led to ice melt and rapid temperature increases in the Arctic, causing some to harbor hopes for new economic opportunities.
Still, it is premature to declare that this will be a substantial enough shift to overcome the environmental hurdles of mining in Greenland. While ice melt has opened some shipping lanes, it has also made the ground less stable for drilling and increases landslide risks.
“Climate change doesn’t mean it’s easy. It’s not the Mediterranean or your bathtub. There’s just less hard freeze,” said Humpert of the Arctic Institute.
In parallel, Greenland’s strict environmental regulations will inevitably increase the cost and complexity of widespread mineral extraction.
Certainly, these regulations reflect the local population’s desire to keep their environment pristine. If the Trump administration manages to eliminate these rules somehow, it could prove highly unpopular.
“You could end up with a hostile local political situation,” Funk Kirkegaard suggested.
Friend or Bully?
Adam Lajeunesse, Chair of Canadian and Arctic Policy at St. Francis Xavier University, argued that Trump’s “odd rhetoric” about capturing Greenland risks undermining the economic and strategic goals of American officials by damaging relations with Greenland and Denmark.
“You can see the United States as no longer being perceived as a friend and partner, but as a bully that should be resisted,” he remarked.
To some extent, this might already be happening.
Kresten Kyedser, Managing Director of the Greenland Business Association, cautions American officials about the risk of damaging rapport with the local populace.
“Right now, anything American is a red flag,” he said. “Everyone is asking, ‘Am I supporting someone who is trying to take over my country?'”
About the Author
