Left party against major mining project wins Greenlandic elections

COPENHAGEN (Reuters) – A left-wing party opposing a major rare earth mining project has become the largest in parliament after gaining more than a third of the vote in a quick election.

Tuesday’s election results cast doubt on the mining complex at Kvanefjeld in the south of the Arctic island and send a strong signal to international mining companies seeking to exploit Greenland’s vast untapped mineral resources.

The Inuit Ataqatigiit (IA) Party won 37% of the vote, compared to 26% in the last election four years ago, overtaking the ruling Social Democratic Siumut Party, which obtained 29% of the vote according to official results. .

The pro-mining Siumut Party has been in power most of the time since 1979.

While IA is not completely against mining, it has a strong focus on the environment. It has campaigned to stop the Kvanefjeld project, which contains uranium in addition to rare earths such as neodymium – which is used in wind turbines, electric vehicles and fighter planes.

“This will undoubtedly hinder the development of mining in Greenland,” said Mikaa Mered, teacher of Arctic affairs at HEC Business School in Paris.

While most Greenlanders view mining as an important path to independence, the Kvanefjeld mine has been a point of contention for years and is deeply divisive in the government and the population over environmental concerns.

“It’s not that Greenlanders don’t want mining, but they don’t want dirty mining,” Mered said, referring to uranium and rare earth projects. “Greenlanders are sending a strong message that it is not worthwhile for them to sacrifice the environment to achieve independence and economic development.”

CHALLENGES TO COME

The 56,000-resident island, which former US President Donald Trump offered to buy in 2019, is part of the Kingdom of Denmark but enjoys broad autonomy.

IA leader Mute Egede, 34, will be the first to attempt to form a new government. A possible ally of the government could be the Naleraq, an independence party that is also against the Kvanefjeld project.

The support of Prime Minister Kim Kielsen and his ruling Siumut party helped permit holder Greenland Minerals get preliminary approval for the project last year, paving the way for a public hearing.

The Australian company has already spent more than $ 100 million preparing the mine and has proven processing technologies through its Chinese partner Shenghe Resources.

“The challenge for IA will be to explain to the world that Greenland is still open for business and still an attractive mining jurisdiction,” said Dwayne Menezes, head of the London-based think tank Polar Research and Policy Initiative.