Greenland signs lucrative minerals deal with Europe in blow to TrumpThis image from March 29, 2025 shows fishing vessels in the harbor of Nuuk, Greenland.© Leon Neal/Getty ImagesGreenland has allowed a Danish-French consortium to mine a rock which is key to the production of aluminum.
The permit granted to Greenland Anorthosite Mining (GAM) to extract anorthosite follows interest in the Arctic territory from U.S. President Donald Trump in acquiring the autonomous island which is part of the Kingdom of Denmark.
GAM, which is backed by French company Jean Boulle Group and real estate investment firms bodies from Denmark and Greenland, was granted a 30-year permit, Reuters reported.
Jesper Willaing Zeuthen, associate professor at Aalborg University, in Denmark, told Newsweek Trump's interest in Greenland's resources is likely to be more in securing long-term investment objects which is difficult under current Greenlandic legislation.
Newsweek has contacted the White House for comment.
Why It Matters
Greenland has sparked international attention since President Trump expressed his interest in acquiring the Arctic island rich in minerals, oil and natural gas.
Greenland's Mineral Resources Minister Naaja Nathanielsen said that U.S. interest in the island has not resulted in any investment and the deal signals that business dialog with European partners was progressing more quickly.
What To Know
Greenland Anorthosite Mining (GAM) was granted permission to extract anorthosite, a white rock composed mainly of aluminum, micro silica, and calcium. The firm plans to ship crushed anorthosite from the west of Greenland for use by the fiberglass industry.
In announcing the 30-year permit, Greenland's Mineral Resources Minister Naaja Nathanielsen said the goal was to scale the project to become a climate-friendly alternative to bauxite in producing aluminum for aircraft, vehicles and defense.
She said that private U.S. business delegations had visited the island this year but despite the rhetoric from the Trump administration, no formal dialogue with the new U.S. administration had started nor brought about an increased interest in direct investment. Cooperation with both the EU and Denmark was progressing more smoothly, she added.
Jesper Willaing Zeuthen, associate professor at Aalborg University in Denmark, told Newsweek on Thursday that Trump's interest in resources from Greenland is likely to focus more on long-term investment objects, and securing the minerals in the future but not the immediate development of mines.
Zeuthen said that Greenlandic legislation makes this approach hard, since mining licenses are temporary and require costly activities on the sites to uphold them.
Had Greenlandic territory been governed according to U.S. legislation, investors could simply buy the land including sub-territory rights and wait for the ice to melt, Zeuthen said, "but since land in Greenland belongs to the Greenlandic state, Greenland is far from this situation."
What People Are Saying
U.S. President Donald Trump on May 4: "We need Greenland very badly."
Greenland's Mineral Resources Minister Naaja Nathanielsen: "We have welcomed a number of investors, but we have not yet seen any concrete example of American funds being injected into Greenland's business community."
Jesper Willaing Zeuthen, Aalborg University, to Newsweek: "The wish from Greenland to have mining projects developed when they are not extremely polluting and next to a settlement is high."
What Happens Next
GAM is backed by French investment firm the Jean Boulle Group and state investment funds in both Greenland and Denmark. Zeuthen told Newsweek that the company will still need to look for investors to begin construction which is a step many other projects have previously failed to complete.
Update 05/22/25, 8 a.m. ET: This article has been updated with further information and comment from Jesper Willaing Zeuthen.
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