Greenlanders will vote in March as Energy Transition Minerals hopes for the Siumut Party to reclaim power from the anti-mining Inuit Ataqatigiit Party. The latter banned uranium mining, affecting rare earth exploration crucial for technology and defense. Should Siumut win, the moratorium may be lifted, opening pathways for economic self-sufficiency and potential independence from Denmark.
Greenlanders are poised to participate in an impending election next month as pressure mounts from United States President Donald Trump regarding the transfer of sovereignty over Greenland. Australia-based Energy Transition Minerals, which possesses a license for rare earths and uranium deposits, is optimistic that the social-democratic Siumut Party will displace the current ruling party, the left-wing Inuit Ataqatigiit Party, in the upcoming election scheduled for March 11.
Presently, the Siumut Party is the second-largest faction in the Greenlandic parliament, known as the Inatsisartut, and is in coalition with the Inuit Ataqatigiit Party. The Siumut Party has gained attention by promising to hold a referendum on independence from Denmark in the current year, further complicating political dynamics. The Inuit Ataqatigiit Party, which assumed power in 2021, enacted a ban on uranium mining, consequently halting exploration of what Energy Transition Minerals describes as potentially the world’s largest rare earth oxides deposit.
Rare earths, comprising a set of 17 essential metallic minerals, are vital for the production of batteries and magnets utilized in electric vehicles, power facilities, and military aircraft. Notably, China dominates the global supply chain, accounting for approximately 70% of mining and 90% of refining capacities. The Inuit Ataqatigiit Party’s opposition to mining stemmed from concerns about uranium’s prevalence in the ore, fueling fears of radioactive contamination along the southwestern coast, predominantly inhabited by the indigenous population of around 57,000.
Energy Transition Minerals anticipates that if the Siumut Party wins the election, it may facilitate the lifting of the current moratorium on mining. This change could enable Greenland to generate increased revenue aimed at achieving economic independence and support its long-desired detachment from Danish governance. There are, however, complex considerations involved; the firm’s largest stakeholder, China’s Shenghe Resources, holds a 7% interest, even as Energy Transition assures that it will supply metals primarily to Western markets.
Moreover, due to the U.S. trade agreements with the European Union and Australia, the company’s rare earths may potentially qualify for significant U.S. tax incentives through technicalities in Treasury regulations. It should be noted, however, that despite these prospects, Wall Street remains skeptical regarding the company’s financial future, especially with its stock trading at a very low price per share.
In summary, the upcoming Greenland elections may significantly impact the rare earth mining landscape, particularly for Energy Transition Minerals. The prospect of a Siumut Party victory might revive mining initiatives suspended by the Inuit Ataqatigiit Party, which imposed a uranium mining ban. As global demand for rare earths surges, this election could herald a pivotal transition toward economic independence for Greenland amidst external pressures.
Original Source: www.gzeromedia.com
