Sorry, I didn't realise that once you download the link and repost it you can no longer view the article unless you are a registered subscriber - I've edited some of the article from my email a/c to give you an overview of what was reported -
President Donald Trump’s idea to buy Greenland may be fantasy, but the US has staked an interest in the island’s resources — in particular, its rare earth minerals.The US recently signed a memorandum to co-operate with the autonomous territory on rare-earth mining in order to promote investment in the sector, amid wider efforts to secure alternative supplies after China hinted that it could constrict exports to the US.Greenland is estimated to hold 38.5m tonnes of rare earth oxides, while total reserves for the rest of the world stand at 120m tonnes.“Stipulated production is substantial, backed by the resources,” said Per Kalvig, chief consultant at the Geological Survey of Denmark and Greenland.China dominates the global production of these rare earths, a group of 17 metals difficult to commercialise but critical to high-tech applications, including electric vehicles, wind turbines and military technology. More than 70 per cent are mined, and an even higher percentage processed, in China. The two companies in Greenland best positioned to mine rare earths have contrasting opinions on the need to co-operate with China — and, ultimately, whether the US and Europe can secure competitively priced non-Chinese rare earths.Tanbreez Mining, an Australian privately owned company, claims to hold promising resources, rich in the heavy rare earths. Greg Barnes, Tanbreez’s chief geologist, said Chinese participation in its project was unnecessary because the unique ore lacks usual contaminants — such as thorium or fluorine — and can be processed for a low cost with a high return of rare earths, eliminating the need for refining in China.“Our operation doesn’t need any Chinese technology, so we don’t need to go to them,” he said.However, industry analysts said that rare earth projects cannot avoid relying on China further down the value chain.“Chinese companies are considered leaders in complex technology to transform mineral concentrates into commercial products and China is the largest market,” said Patrik Andersson from Aalborg University. “Therefore, it is difficult to envisage how a project that completely excludes Chinese expertise could succeed.”The Arctic nation’s other rare earth mining group, Greenland Minerals, has Chinese producer Shenghe Resources as its largest shareholder. The Australian miner’s share price recently trebled after it announced vastly reduced capital and operational costs for greater resource return, achieved largely thanks to Shenghe’s technical knowhow.“We need Chinese counterparts,” said John Mair, managing director at Greenland Minerals. “We worked with the best western world groups, but China can take it further.”While these mining projects remain contentious due to their by-products uranium and fluorine — and their possible environmental impact in an island that is a barometer for measuring global warming — others point to the benefits they could bring.For some politicians in Nuuk, Greenland’s capital, resource development is seen as a route to employment, stemming emigration and greater independence from Denmark in the long-term, which subsidises more than half of the annual budget. Mining the minerals could also help lower global carbon emissions by enabling a green tech boom.But the government is moving slowly, with only two mines for sapphire and anorthosite operational to date. The Ministry of Mineral Resources and Labour said that its “main concern is to protect the environment and public health,” backed by a study on the benefits of mining that recommended development to not take place too rapidly in a country of just 56,000 people.In fact, both rare earth mining companies state their biggest problem is governmental bureaucracy due to inexperience, turnover of personnel and excessive caution.Greenland Minerals said this had impeded progress but it was now entering a public consultation, after submitting an environmental impact assessment.Tanbreez has been waiting seven years for an exploitation licence, held up by negotiations over local employment related to a chemical plant to refine minerals, likely to eventually be built in Iceland, Denmark or Norway.“Bureaucracy kills the place,” said Mr Barnes before adding that he was “seeing signs of change”.Regarding China’s role in Greenland, a US Department of State official said that their message to the Greenland government was by “opening things up to a wider array of companies that will do this in the best way, you have the best option for your own country”. But even if Greenland’s bureaucracy gives the green light to exploit its rare earth potential, the minerals may end up in China later down the value chain anyway.The structure of the global rare earths supply chain points to the need for western governments and car manufacturers seeking to diversify supply to also focus on building capacity in downstream processing.
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