Greenland has awarded a 30-year mining license to Greenland Anorthosite Mining (GAM), a Danish-French consortium aiming to extract a rare mineral with environmentally friendly applications in the aluminium sector. The project, located in western Greenland, is expected to supply a more sustainable alternative to traditional raw materials used in aluminium production.

GAM is backed by the French Jean Boulle Group, alongside state investment funds from Denmark and Greenland, and plans to extract anorthosite, a pale rock rich in aluminium, calcium, and micro silica that resembles the lunar samples retrieved during NASA's Apollo missions.

In the short term, the rock will be processed for use in the fibreglass industry, replacing kaolin. The long-term ambition is to employ it as a greener substitute for bauxite in the aluminium sector, which feeds into the aviation, automotive, and defense industries.

“My hope is that the mine will be operational in five years,” said Greenland’s Minister for Mineral Resources, Naaja Nathanielsen, told Reuters.

Anorthosite: Greener future for aluminium

The extracted anorthosite is being marketed as a more eco-friendly solution for aluminium production, particularly due to its low environmental impact compared to conventional bauxite mining.

Industry analysts have noted growing interest in alternatives that can help reduce the carbon footprint of materials critical to global supply chains.

With demand for aluminium soaring in green technology applications, from electric vehicles to renewable infrastructure, projects like GAM’s are being positioned as part of a broader shift toward sustainable raw material sourcing.

The move also supports Greenland’s attempt to leverage its natural resources for long-term economic development.

Europe deepens Arctic mineral ties amid US absence

The new license arrives at a time when Greenland is receiving renewed geopolitical attention, particularly after former US President Donald Trump floated the idea of purchasing the island earlier this year. However, Minister Nathanielsen noted that such gestures have not resulted in actual investments.

“Right now, all the fuss has not resulted in increased appetite for investment directly in Greenland,” she said, noting that despite visits from private American business delegations, no formal discussions have occurred with the current US administration.

Instead, Greenland has found more constructive engagement with European partners. “There is no doubt that the dialogue with both the EU and Denmark is going smoother,” Nathanielsen remarked.

“This is not only the result of the noise made by the US administration, but also the result of several years of intensified cooperation,” Nathanielsen said.

Regulatory delays and slow investment hamper Greenland’s mining ambitions

Reappointed in April under a more business-focused government, Nathanielsen acknowledged that Greenland’s mining ambitions have long been constrained by limited investor interest, regulatory complexity, and heightened environmental scrutiny. Currently, only two small-scale mining operations are active on the island.

By issuing this license, Greenland aims to signal its readiness to attract sustainable mining initiatives and secure a place in the evolving landscape of green industry supply chains. Yet, the minister tempered expectations, noting that full operationalization remains years away and contingent on further private sector commitment.

As climate concerns intensify and countries race to secure rare earth and strategic minerals, Greenland’s untapped resources, particularly its deposits of aluminium-rich anorthosite, may gain renewed attention as a cleaner foundation for future industry.