Denmark rejects $11 Billion mining claim in Greenland

An Australian mining company has been denied permission to extract rare earths from Kvanefjeld in Southern Greenland and has filed an almost 80 billion DKK compensation claim. Greenland and Denmark, supported by the state’s legal counsel, have rejected the claim, stating it does not belong to arbitration. The issue escalated after the Greenlandic election in November 2021, where environmental concerns led to a governmental refusal of the project. The rare earths are vital for modern technologies and the green transition, but extraction would involve radioactive uranium. The case, argued to be a matter of Greenland’s courts by the Greenlandic government, is also seen by the Danish government as Greenland’s responsibility. The outcome of the arbitration, which is still pending, remains uncertain.