Background

Kuannersuit – a world-class opportunity

Located in southern Greenland, Kuannersuit (Kvanefjeld) is one of the largest and most accessible deposits of rare earths globally. Its unique geology, proximity to an ice-free harbor, and favorable infrastructure potential make it ideal for low-cost, large-scale production. The Kuannersuit Project was designed to:

• Supply a significant share of global rare earth demand to accelerate renewable energy and electrification.
• Create long-term economic value for Greenland through jobs, skills, infrastructure investment, and royalties.
• Set new standards for responsible mining in Arctic conditions.
  
  

Meeting every standard – and going beyond

Over 15 years, ETM (formerly Greenland Minerals) completed extensive environmental and social impact assessments, technical studies, and community engagement. The project met every requirement from Greenlandic, Danish, and international authorities. Independent experts confirmed that Kuannersuit could be developed safely, with world-leading environmental safeguards and transparent operations.

ETM has a right to an exploitation licence for Kuannersuit to commence mining. This is stated directly in the exploration licence and in Greenland legislation. As a result, ETM have invested US $150,000,000 over 15 years in Greenland engaging closely with the local population and authorities to develop the Kuannersuit Project. Until 2021, there was no legislation in Greenland banning mining of uranium or mining of other minerals involving handling of uranium as a residual (waste) product.

A political decision that changed the game

In 2021, the Government of Greenland introduced legislation banning mineral extraction that contains radioactive material with retroactive effect – despite the Kuannersuit Project having fully complied with all existing laws and approvals. In practice, the Uranium Act functions as a Kuannersuit-specific law, adopted with retroactive and expropriatory effect by stopping ETM from utilizing its right to an exploitation license. The adoption of the Uranium Act effectively halted the project overnight.  

Since then, the project has been at a standstill, harming both ETM and the local community, who have been left in uncertainty and forced to live with the Kuannersuit dispute as part of their daily lives. The result was a reversal of an established legal framework, raising concerns about regulatory certainty for future investment.

The consequences are real

• Greenland loses one of the largest foreign direct investments in its history, along with thousands of potential jobs and decades of royalty revenue. It would amount to approx. US $22.8 billion in total – which equates to more than US $400,000 for every member of the population of Greenland.
• The world forfeits a major new supply of rare earths from a safe, democratic jurisdiction – reinforcing dependence on a single dominant supplier.
• Confidence in Greenland’s resource sector is undermined at a time when global competition for strategic materials is intensifying, and failing to honor the agreement can significantly damage investor confidence in Greenland as a whole.
  
  

A way forward is still possible

The potential of Kuannersuit is immense, which is only stressed by the fact that the project remains viable both under a model involving commercial uranium extraction and under one that does not.

ETM remains committed to constructive dialogue and to finding a joint solution that provides reassurance and certainty for the local community, meets the highest standards for environmental protection, health, and safety, and that gives Greenland an economic boost – not only in the shape of tax revenue, but also skills, jobs, and infrastructure investments that will help the country in the long run. We believe that common ground can be found if the will is present among all parties involved. At ETM, we have that will.

At present, substantial resources are being spent on arbitration and litigation, which means that a genuine resolution remains a distant prospect. This serves no one’s interest. Finding a solution would deliver benefits for Greenland’s economy, support the global green transition, and demonstrate that Greenland can be a reliable partner in securing the strategic resources the world urgently needs.