We traveled to Greenland to see its sole active mine in operation. Discover what is required to extract resources in one of the planet's most isolated regions.

Greenland's Untapped Mineral Wealth and the Challenges of Extraction

Greenland is rich in valuable minerals, but the infrastructure and resources needed to mine them are largely absent.

As one of the most challenging places on Earth for logistics, Greenland lacks roads connecting its towns, has a limited workforce, and faces unpredictable weather that can halt operations at any moment.

Despite these obstacles, global leaders and investors are increasingly interested in Greenland's natural assets—such as copper, zinc, graphite, gold, and rare earth elements—essential for industries ranging from construction and electronics to defense.

With the US, Europe, and other nations seeking to reduce reliance on China for critical minerals, Greenland has come under renewed scrutiny as a possible alternative source. Notably, former President Donald Trump's suggestion that the US should acquire Greenland for security reasons—has also highlighted the island's strategic importance.

Mining anorthosite at Lumina mine. Photo: Mark Adam Miller

Inside Greenland's Only Operating Mine

Currently, Greenland has just one mine in full operation. In June, journalist Sarah Andersen from Business Insider visited this site to understand why it remains active while others have closed, and why the island's mineral riches have yet to trigger a widespread mining surge.

What It Takes to Operate a Mine in Greenland

Bent Olsvig Jensen, managing director of Lumina Sustainable Materials, explains that meticulous planning is essential for mining in Greenland.

Bent Olvig speaking with Business Insider. Photo: Mark Adam Miller

"We must anticipate every need, as it's impossible to simply call for spare parts and expect them to arrive the next day," Jensen shared in June.

Lumina Sustainable Materials, a private group with operations in Greenland, the US, Mexico, and the EU, runs the island’s only fully operational mine. This facility is located deep within a fjord, inaccessible by road.

The mine extracts anorthosite, a mineral used in products like fiberglass and construction materials.

A close-up of anorthosite. Photo: Mark Adam Miller

Beyond the facilities they've constructed—a camp, processing plant, warehouse, harbor, and even a small gym and clinic—there is no supporting infrastructure. Supplies and personnel arrive by ship during the ice-free season or by helicopter when the fjord is frozen, according to Jensen. (Andersen herself traveled eight hours by boat from Nuuk, the capital.)

When equipment fails, there is no overnight delivery option.

"Sometimes, waiting for replacement parts can take a week or two," said Dennis Jensen, the mine's site manager, who oversees operations through the harsh, dark winters where temperatures can plummet to -22°F. "When it gets that cold, outdoor work stops," he added.

Dennis Jensen is the site manager of the Lumina Greenland mine. Photo: Mark Adam Miller

Winter storms can ground helicopters for days, delaying crew rotations and forcing workers to remain on site longer than planned, Dennis Jensen noted.

The Obstacles to Launching Mining Projects in Greenland

According to Naaja Nathanielsen, Greenland's minister overseeing natural resources, it typically takes around 16 years from the initial concept to the opening of a mine.

During most of that period, "expenses outweigh income," she explained.

Naaja Nathanielsen is Greenland's minister of natural resources, business, energy, justice, and gender equality. Photo: Mark Adam Miller

For example, it took Lumina 11 years to progress from exploration in 2008 to full production in 2019, according to Bent Jensen.

Greenland currently has over 100 active mineral licenses, covering everything from early exploration to advanced stages. However, many projects stall before reaching production, often due to difficulties in securing long-term funding, Nathanielsen said.

Majken Djurhuus Poulsen, a geologist with the Geological Survey of Denmark and Greenland, told Andersen that many people wrongly assume mining can begin immediately, but that's far from reality.

Majken Djurhuus Poulsen speaking with Business Insider. Photo: Mark Adam Miller

Poulsen explained that parts of Greenland contain some of the oldest rocks on Earth, formed billions of years ago. This geological history has resulted in diverse mineral deposits, but the harsh conditions make exploration slow and difficult.

"Exploration is only possible for three to four months each year, when the ice recedes enough," she said.

Additionally, many sites are remote and only accessible by helicopter, driving up costs. With little to no existing infrastructure, everything—from the mine itself to worker accommodations—must be built from the ground up. Even after all this, identifying a viable deposit can take many years, sometimes decades, Poulsen added.

Some of the infrastructure of Lumina's Greenland mine. Photo: Mark Adam Miller

Consequently, mining in Greenland requires investors with patience and a high tolerance for risk. Nathanielsen noted that Greenland lacks sufficient domestic capital and must rely heavily on foreign investment.

"It's a sobering challenge to keep investors engaged," said James Kiernan, honorary chairman of Cordiant Capital, a Canadian investment firm and major backer of Lumina.

James Kiernan is the honorary chairman of Cordiant Capital. Photo: Mark Adam Miller

Kiernan cited several mines that have struggled as market conditions changed. "Take the Ruby mine, for instance—they opened, closed, reopened, and closed again," he said, describing the stop-and-go nature of many mining ventures on the island.

Greenland's Approach: 'One Mine at a Time'

The Greenlandic government maintains strict environmental and social requirements for mining projects.

Before any project can proceed, companies must answer two key questions: Will the project create jobs for local residents, and how will it safeguard the environment?

"If companies can't provide satisfactory answers to these questions, they will face resistance," Nathanielsen emphasized.

Greenland's lush natural landscape in the background near Lumina's mine. Photo: Mark Adam Miller

Lumina's ability to navigate these requirements is attributed to its long-term planning, close collaboration with authorities, and a business model tailored to Greenland's unique challenges.

Nevertheless, the mine has yet to achieve profitability, Kiernan told Andersen in a recent follow-up.

However, both Bent Jensen and Kiernan believe that the experience gained from operating in Greenland's demanding environment positions the company well for future projects. Lumina has recently obtained an exploration license for rare earth minerals.

The development of additional mines could help Greenlanders move toward greater economic independence, potentially reducing the island's reliance on Denmark.

Still, a rapid mining expansion is unlikely, according to Bent Jensen.

"I expect Greenland to grow gradually, in step with its people and political leadership," he said. "Progress will come one mine at a time."

Read the original article on Business Insider.