Greenland’s largest opposition party wins election, will call off rare earth mining project in which China is the largest shareholder

Greenland voters to hold parliamentary elections on April 6, 2021

Greenland, located in the Arctic region, held an election on Tuesday (April 6, 2021) that has received much world attention. Observers generally agree that the outcome of the election will have important implications for the supply of strategically important rare earths as well as the U.S.-China power rivalry.

A central issue in the election was whether to authorize Australia’s Greenland Mining Corporation to exploit a large rare earth mine in the south. The company’s largest shareholder is Chinese rare earths giant Shenghe Resources Holdings Co.

The ruling Forward Party advocates giving the green light to the mining project to lay the economic and financial groundwork for Greenland’s eventual departure from Danish rule.

Inuit community opposed to rare earth mining project wins Greenland’s April 6, 2021 parliamentary elections

But the main opposition party, the left-wing Inuit Community, believes the mining project will have an extremely negative impact on the environment.

The vote count showed that the Inuit Community received the most votes, with 37 percent of the vote, more than the 29 percent obtained by the Forward Party, and thus qualified to form a governing coalition with other smaller parties.

After the vote results were announced, the leader of the Inuit Community told a Danish media outlet that “Greenlanders have spoken and the Kovane Bay mineral project will not be approved.”

Analysts believe that while the large rare earth mining project may be on hold, Greenland’s election has sparked world attention, showing that the Arctic Circle island with a population of less than 57,000 is playing an increasingly large role because of global climate change.

Aware of Greenland’s rich rare earth resources, its geographic importance and its potentially significant role in the U.S.-China great power rivalry.

Then-U.S. President Donald Trump had proposed the idea of buying Greenland in 2019, but the offer was rejected by Denmark and Greenland.