Greenland grants license for climate-conscious aluminium production

Greenland has granted a 30-year mining license to Greenland Anorthosite Mining (GAM), a Danish-French consortium aiming to extract a rare, moon-like rock that could serve as a more environmentally sustainable alternative in aluminium production.

The license allows GAM to develop a mining site in western Greenland. The project is backed by French investment firm Jean Boulle Group, as well as sovereign investment funds from Greenland and Denmark, Caliber.Az reports, citing foreign media.

The rock in question, anorthosite—a pale, lunar-like mineral rich in aluminium, micro silica, and calcium—bears striking resemblance to samples retrieved during NASA’s Apollo missions. Initially, GAM plans to export crushed anorthosite to the fibreglass industry, where it could replace kaolin as a more sustainable raw material. However, the longer-term objective is to deploy the mineral as an eco-friendlier substitute for bauxite in aluminium production, a critical component in aerospace, automotive, and defence manufacturing.

"My hope is that the mine will be operational in five years," said Greenland’s Minister for Mineral Resources, Naaja Nathanielsen.

Greenland, long perceived as a potential resource frontier due to its vast reserves of minerals, oil, and natural gas, has recently returned to the international spotlight—especially following US President Donald Trump’s proposal to purchase the island in 2023. Despite this heightened geopolitical interest, Nathanielsen noted that tangible American investment has yet to materialize.

"Right now, all the fuss has not resulted in increased appetite for investment directly in Greenland," she said, referring to Trump's proposal to buy the island.

"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," she said

While private US business delegations have visited the island since the beginning of the year, formal engagement with the new US administration remains pending. In contrast, cooperation with European partners appears to be advancing more smoothly.

"There is no doubt that the dialogue with both the EU and Denmark is going smoother. This is not only the result of the noise made by the US administration, but also the result of several years of intensified cooperation," Nathanielsen added.

Reappointed in April under Greenland’s newly elected pro-business government, Nathanielsen is tasked with revitalizing the island’s sluggish mining sector. Despite its abundant natural resources, the sector has struggled to gain momentum, hampered by limited investor confidence, regulatory complexity, and environmental concerns. Currently, only two small mines are operational across the island.

If successful, GAM’s project could signal a turning point for Greenland’s mining ambitions, positioning the island as a key supplier of sustainable raw materials in a global economy increasingly focused on green technologies.

By Vafa Guliyeva