An Australian mining company has sued the Greenlandic self-government following the rejection of the exploitation of rare earth metals in Greenland. The lawsuit came after the Greenlandic government permanently denied an application from the mining company for an exploitation permit at the mountain plateau Kuannersuit, also known as Kvanefjeld in Danish. This was announced by the Greenlandic government, Naalakkersuisut, in a press release on Friday.
The mining company Energy Transition Minerals (ETM) has been conducting searches for rare earth metals in the area since 2007. Large quantities of rare earth metals are found beneath the mountain plateau, which are crucial for modern technology and the green transition as they are necessary for battery production. The rejection from the Greenlandic government has significant consequences for the Australian mining company.
In November 2021, the new Greenlandic government passed a law for environmental reasons that prohibits the extraction of uranium. Since the extraction of the rare earth metals would also involve the extraction of radioactive uranium, the company’s application was rejected.