Trump’s Greenland talk brings opportunity, unease for business

Greenland’s business community is split on the impact of Donald Trump’s renewed interest in the Arctic island.

While some see commercial opportunity, others say harsh rhetoric about taking control of the territory is dampening near-term activity.

The revived talk has sparked a new rush by US officials to identify business deals and other ways to deepen ties with Greenland, according to people familiar with the matter. For now, discussions are focused on mining projects, hydroelectric power and other ventures that could expand the US economic footprint on the island.

“Greenland is now in the position to decide its future, to build up its economic independence,” Eldur Olafsson, founder and chief executive officer of Amaroq Ltd, told Bloomberg Television on Thursday. “There is opportunity in this.”

The Toronto-based company operates a newly opened gold mine in Greenland and holds the largest portfolio of mineral exploration licenses in the territory. Last year, Amaroq attracted strong demand from investors on both sides of the Atlantic in an oversubscribed funding round and has since seen interest from state-backed agencies in the US and Europe.

The US president has “really put Greenland on the map” since he first touted the idea of buying the island in 2019, Olafsson said. “People saw there are resources there.”

Trump “doesn’t want to lose time to get something done,” Olafsson said. “That overall is a good thing, because Greenland needs investment.”

The island’s public finances are under mounting pressure and its fiscal position suffered a “surprisingly sharp deterioration” last year, according to an analysis published this week by Denmark’s central bank. It underscores the urgency of discovering new sources of growth as Greenland seeks greater economic self-reliance.

The Arctic island is betting on its mining sector to help diversify the economy and lay the groundwork for future independence from Denmark. Despite Greenland’s vast untapped reserves, commercial extraction remains limited so far. Harsh operating conditions, high production costs and relatively low mineral concentrations have deterred large-scale development.

To bridge that gap, support from other governments will likely be needed. The US and other nations could help projects get off the ground through purchase commitments, price floors, grants or even equity stakes.

Elsewhere in Greenland’s business community, reactions are more mixed.

“Some people do see it as an opportunity to expand into new markets in the US,” Mads Qvist Frederiksen, executive director of the Arctic Economic Council, told Bloomberg Radio. While Greenlanders are unlikely to agree to a sale, he said, companies remain open to doing business.

For now, however, the rhetoric around buying Greenland or taking it by force is proving counterproductive.

“Everything is put on hold at the moment,” Frederiksen said, with companies postponing decisions until there is more clarity about Greenland’s future. “We have to turn off this fire that is on at the moment.”

(By Sanne Wass)