Dear [Member of Parliament]
I am writing to you as CEO of the Australian mining company Energy Transition Minerals Ltd (“ETM”) to share my concerns about how the mineral resources sector in Greenland is currently being handled. These concerns are based on ETM’s long-term work in Greenland and reflect a growing uncertainty about the direction and conditions for investment in the sector.
I urge the members of the Greenlandic Parliament to take action to restore confidence in Greenland’s mineral resources sector, which is currently being weakened by the actions of the Government of Greenland, and to ensure that the sector can realise its full potential for the benefit of the Greenlandic society.
Let me stress that potential in Greenland is great. No doubt, the mineral resource sector could significantly contribute to a sustainable economy in Greenland. However, despite holding vast and globally significant mineral resources, Greenland currently gets very little economic value from them, as almost no projects have reached actual production.
ETM has invested approximately DKK 950 million in the Kuannersuit project over the past decade, fully complying with all relevant rules and requirements. We have worked closely with local communities and stakeholders, addressing concerns related to health, safety, and the environment, and remain committed to adapting the project to meet local expectations.
At the same time, we have placed strong emphasis on local engagement in Narsaq, including hiring locally, supporting skills development, and contributing to the local economy. We are committed to building partnerships that deliver clear and lasting benefits both for local communities, including Narsaq, and for Greenland as a whole.
Despite these efforts, progress continues to be slowed down by actions and decisions from Greenlandic authorities and political actors. Of particular concern is the current situation regarding our exploration licence, which ETM has held for more than 15 years without issue. The fact that this licence is now being questioned raises questions about stable and predictable rules. It is difficult to understand why a licence that has long been recognised and operated under clear and known terms, and which was extended as recently as 2023, is now subject to uncertainty.
Moreover, in January of this year, then-minister for Mineral Resources, Naaja Nathanielsen, stated in an answer to a question about the Kuannersuit Project, that it is the Greenlandic authorities’ general practice to grant extensions when the applicable conditions are met. ETM has consistently fulfilled these conditions, as reflected in the repeated extensions granted over the years. Nothing has changed from our side. Against this backdrop, it remains unclear what has changed to justify the current questioning of our licence.
As you all are aware we are currently engaged in a legal process with the Greenlandic authorities. This is not a path we would have chosen, but it has become necessary to protect our long-standing commitment to the project. We believe we have a strong legal case and stand by our position. At the same time, a long and costly legal process is in no one’s interest, and we remain open to finding a constructive and balanced solution.
I wish to emphasise that my objective is not to escalate tensions, but to find a constructive way forward. ETM is committed to solving environmental and social challenges in full alignment with the highest international standards for environmental protection, safety and responsible mining. That is why, we remain committed to dialogue and to identifying a solution that ensures real benefits for the Greenlandic society, while also enabling ETM to realise a project that is both lawful and of great importance to Greenland as well as the strategic autonomy in the EU. In short, if there is a way to reach a compromise we are ready to find it together.
Members of Inatsisartut have previously expressed concern as to whether Naalakkersuisut fully informed Parliament of the potential consequences of the Uranium Act, including possible liability risks in relation to the Kuannersuit project. Although Naalakkersuisut maintained that no information had been withheld and committed to publishing a report by spring 2024, no such report has been made public. ETM would therefore encourage members of Inatsisartut to urge Naalakkersuisut to ensure that such a report is completed and published without further delay, in accordance with Parliament’s original request and in the interest of transparency.
Much is at stake. The handling of this matter sends a very clear and concerning signal to the wider international investment community about the conditions for doing business in Greenland. It demonstrates that Greenland is, in practice, not open for business, despite the Government of Greenland’s continued claims to the contrary.
We therefore address the Greenlandic Parliament directly and urge you, as decision-makers, not to remain passive, but to take active responsibility in light of the current course set out by the Government of Greenland. The current approach seriously weakens investor trust and will have far-reaching consequences for Greenland’s ability to attract future investment and, consequently, for the Greenlandic economy.
We would welcome the opportunity to meet with you and other relevant stakeholders to engage in a constructive dialogue on how to move forward.
If you have any questions, comments or wish further information, please reach out.
Yours sincerely,
Daniel Mamadou, CEO of Energy Transition Minerals