Context: Greenland is emerging as a key geopolitical and economic hotspot due to its vast reserves of critical raw materials, strategic minerals, and hydrocarbon potential—resources that are increasingly valuable in the global clean-energy transition and intensifying Arctic competition. As climate change accelerates ice melt, access to these deposits is increasing, creating both opportunity and risk.

Why Greenland Matters
Greenland is the world’s largest non-continental island, located between the Arctic and Atlantic Oceans, functioning as a strategic bridge between North America and Europe. Nearly 80% of Greenland is covered by the world’s second-largest ice sheet (after Antarctica).
While geographically part of North America, it is an autonomous territory within the Kingdom of Denmark, with internal self-government but Danish control over foreign policy, defence, and currency.
Importantly:
- Greenland is under NATO Article 5 protection
- It is not part of the European Union
- Hosts the Pituffik Space Base, crucial for US and NATO Arctic security
Greenland’s Resource Wealth
1) Hydrocarbon Potential
According to the USGS, Greenland may hold about 31 billion barrels of oil-equivalent hydrocarbons in onshore northeast areas, including ice-covered regions. Sedimentary basins, particularly the Jameson Land Basin, are viewed as among the most promising oil–gas zones, often compared to Norway’s hydrocarbon-rich shelf.
2) Critical Minerals and Rare Earth Elements (REEs)
Greenland is predicted to contain around 40 million tonnes of dysprosium and neodymium, potentially meeting over 25% of projected future global demand. These are essential for:
- Wind turbines
- EV motors
- defence electronics
- advanced communication systems
3) Special Minerals and Metals
Greenland also hosts:
- diamond-bearing kimberlite pipes
- native iron lumps
- lead, copper, zinc and iron (often in ice-free basins)
Why is Greenland So Resource-Rich? (Geological Explanation)
Greenland’s geology spans nearly 4 billion years, containing some of the oldest rocks on Earth. This long geological history enabled repeated mineral-forming events.
Uniquely, Greenland experienced all three major resource-generating geological pathways:
- Mountain Building (Orogeny):
Compression created fractures and fault zones that allowed formation of deposits like gold, graphite, and gemstones. - Rifting:
Repeated rifting (including during the Atlantic opening ~200 million years ago) formed sedimentary basins, ideal for hydrocarbons and metals. - Volcanism and Hydrothermal Activity:
Igneous intrusions and hydrothermal fluids concentrated REEs like niobium, tantalum, ytterbium and terbium.
Climate Change Link: Opportunity vs Emissions Trap
Climate change is unlocking Greenland’s deposits at an unprecedented pace.
- Since 1995, Greenland has lost ice over an area roughly the size of Albania
- Exposed terrain is expanding mining feasibility
However, there is a major contradiction:
- Ice melt enables extraction
- but large-scale extraction—especially oil and gas—could worsen emissions, accelerating warming
Greenland is warming about four times faster than the global average, and its ice melt contributes significantly to global sea-level rise. The melting ice also affects the Atlantic Meridional Overturning Circulation (AMOC), impacting weather patterns worldwide.
Geopolitical Significance: The Arctic Chessboard
Pituffik Space Base (Thule Air Base)
- Northernmost US military base
- Located ~1,200 km north of the Arctic Circle
- Operational year-round despite harsh conditions
- Critical for:
- ballistic missile early warning
- satellite tracking
- space monitoring for US/NATO
- Renamed from Thule Air Base in 2023, reflecting Greenlandic heritage
- Established under a 1951 US–Denmark defence agreement
Strategic Competition
Resource access and new shipping lanes are increasing interest from major powers:
- the US and NATO (security + supply chain resilience)
- China (critical minerals and polar routes)
- Russia (Arctic militarisation and dominance)
Thus, Greenland has become central to:
- critical mineral diplomacy
- Arctic security strategy
- climate governance debates
Economic Dimension
Greenland’s economy is still highly dependent on:
- fishing (≈90% of exports)
- Denmark’s annual subsidy (≈20% of GDP)
Mining and energy extraction could provide revenue and autonomy, but risks damaging Arctic ecosystems and indigenous livelihoods if poorly regulated.
Conclusion
Greenland’s rising importance reflects the intersection of geology, climate change, and geopolitics. Its mineral reserves could strengthen global clean-energy supply chains, but extraction in the Arctic must be balanced with climate responsibilities.
In the coming decades, Greenland is likely to remain a focal point of resource competition, strategic security planning, and environmental debate.











