Why Greenland's Natural Resources Are So Sought-After, According to a Geologist
Greenland, the world's largest island, is a treasure trove of natural resources, according to a geologist. From rare earth elements (REEs) to valuable minerals and metals, and a vast amount of hydrocarbons, Greenland's geological history has made it a prime location for these resources. The island's unique geological processes, including mountain building, rifting, and volcanic activity, have contributed to its rich natural wealth.
One of the most significant aspects of Greenland's geology is its REE-bearing deposits, which are some of the world's largest by volume. These deposits, located deep under the ice, have the potential to produce batteries and electrical components essential for the global energy transition. The US Geological Survey estimates that Greenland's onshore northeast region contains around 31 billion barrels of oil-equivalent hydrocarbons, similar to the US's proven crude oil reserves.
However, Greenland's ice-free area, which is nearly double the size of the UK, is only a fraction of the island's total surface area. This suggests that there may be vast stores of unexplored natural resources beneath the ice. Greenland's geological history, dating back 4 billion years, has resulted in the presence of some of the oldest rocks on Earth, as well as truck-sized lumps of native iron. Diamond-bearing kimberlite pipes were discovered in the 1970s but have yet to be fully exploited due to logistical challenges.
The island's natural resources are primarily derived from its periods of rifting, including the formation of the Atlantic Ocean during the Jurassic Period. Greenland's onshore sedimentary basins, such as the Jameson Land Basin, hold significant potential for oil and gas reserves, similar to Norway's hydrocarbon-rich continental shelf. However, high costs have limited commercial exploration.
Greenland's critical raw materials, such as niobium, tantalum, and ytterbium, are found in igneous rock layers. These elements are essential for wind power, electric motors, and magnets in high-temperature settings. Greenland is predicted to hold sufficient sub-ice reserves of dysprosium and neodymium to satisfy more than a quarter of the world's future demand, making them economically important yet difficult to source.
The global energy transition, driven by the recognition of fossil fuel threats, has major implications for Greenland's natural resources. As climate change accelerates, the availability of these resources, currently covered by ice, becomes a concern. Recent survey techniques, such as ground-penetrating radar, allow for increased certainty in subsurface exploration. However, progress in prospecting under the ice is slow, and sustainable extraction is a significant challenge.
The dilemma arises as Greenland's resource wealth becomes more accessible. Should the extraction be pursued vigorously to support the energy transition? However, this approach would exacerbate climate change impacts, including landscape despoilage and rising sea levels. Greenland's government heavily regulates mining and resource extraction through comprehensive legal frameworks, but pressures to loosen these controls may increase with the US's interest in the island's future.
