There's a lot of money under Greenland

But extracting it could come with a high cost

Photo by Visit Greenland on Unsplash

Greenland’s been in the news a lot lately so I figured, why not write an article (and make a whole video) about it! It’s actually kind of rare that there’s so much obvious geography to talk about with respects to news. But here I am with Greenland and the Gulf of Mexico and then the Panama Canal and oh so much more stuff. All because of one person… it’s nuts. C’est la vie!

Let’s head to Greenland!

Greenland is the world’s largest island, covered in an ice sheet that’s over a mile thick on average. And beneath this icy expanse lies a treasure trove of untouched natural resources, enough to transform Greenland’s economy and potentially make every resident unimaginably wealthy. But just how much money is hidden beneath Greenland’s ice?

Well, let’s back up a little bit because Greenland is not just a treasure chest waiting to be unlocked. It’s a unique area of the planet!

Greenland's identity and history are deeply connected to Denmark, despite being separated by 1,500 miles of ocean. This unique relationship began in the early 1700s, when Danish-Norwegian missionary Hans Egede sought to re-establish contact with the island's long-abandoned Norse settlements. Greenland had been home to Viking communities led by Erik the Red centuries earlier, but by Egede's time, these settlements had vanished. Egede’s expedition, though fruitless in finding Norse survivors, marked the start of Denmark’s modern claim over Greenland.

By the early 1800s, Greenland had become a Danish colony, and in 1953, it was officially integrated into the Kingdom of Denmark. In 1979, Greenland achieved home rule, and by 2009, this autonomy expanded to include greater control over natural resources and foreign policy. Yet Denmark still oversees defense and monetary policy, creating a complicated dynamic between the two.

This is made more complex by Greenland’s stark differences from Denmark. Greenland’s population of 56,000 is dwarfed by Denmark’s nearly 6 million. Also, most Greenlanders are Inuit, with a heritage rooted in the Arctic environment, unlike Denmark’s predominantly European population. Traditional practices such as fishing and hunting remain vital to Greenlanders, while Denmark’s priorities lie elsewhere. It should be no surprise here that Greenlanders, by and large, have more in common with their North American indigenous neighbors than they do with the Danes.

And of course, geographically, Greenland is a land of extremes. Its 2.1 million square kilometers are dominated by the second-largest ice sheet in the world, covering nearly 80% of its surface. Meanwhile, Denmark is a flat, low-lying country of just 43,000 square kilometers. The physical and cultural divides between the two make Greenland’s calls for independence unsurprising.

But independence for Greenland is complicated. The island relies on an annual subsidy of about $500 million from Denmark, roughly $9,000 per resident. However, with its vast natural resources, Greenland could potentially fund itself. And that’s where things get interesting.

In recent years, Greenland’s resources have drawn global attention, especially from the United States. In 1946, President Harry Truman offered Denmark $100 million in gold for Greenland, but the deal was rejected. More recently, under Donald Trump’s administration, the U.S. renewed its interest, citing Greenland’s strategic Arctic location and its vast reserves of rare earth minerals, uranium, and other valuable resources.

While Denmark refused the U.S.’s overtures, the interest is not surprising. Beneath Greenland’s ice lies an estimated $5 trillion worth of resources, or about $90 million per Greenlander on the island. And this amount could potentially go up with totals climbing to $10 trillion or more as the ice continues to melt and more land is able to be prospected. These resources include rare earth minerals essential for modern technology, vast uranium deposits critical for nuclear energy, and untapped oil and natural gas reserves.

The rare earth minerals are particularly noteworthy. Greenland has proven deposits of 25 of the 34 minerals in this category, which are crucial for everything from smartphones to satellite systems. And with China currently dominating global rare earth mineral production, Greenland’s resources could serve as a critical alternative, especially amid growing tensions between the U.S. and China.

Uranium offers another valuable resource. As demand for nuclear energy rises, Greenland’s uranium reserves could play a pivotal role in the energy transition. However, mining uranium remains controversial on the island, with many Greenlanders concerned about environmental risks and the impact on traditional ways of life.

Beyond these modern resources, Greenland also holds significant deposits of iron ore, gold, copper, and zinc. Companies from Australia, Canada, and China have already expressed interest in tapping into these riches. However, Greenland’s government has taken a cautious approach. It has banned oil extraction and emphasizes sustainability, reflecting a desire to balance economic growth with environmental and cultural preservation.

All this said, Greenland’s small population and lack of military power leave it vulnerable in a world increasingly focused on Arctic resources. With climate change accelerating the ice melt, Greenland is becoming more accessible and more desirable. Its potential wealth could make every Greenlander a millionaire many times over, but at what cost? And while today the island is protected by NATO by way of Denmark, if the island became independent, that shield would no longer apply. Which makes things complicated for Greenland.

As countries and corporations vie for influence in Greenland, the island finds itself at the center of a global competition for resources. For Greenlanders, this newfound attention raises profound questions about their future. Will the wealth beneath the ice transform Greenland into a prosperous independent country, or will it come at the expense of their culture, environment, and way of life?

The Arctic is melting, and Greenland’s hidden riches are emerging. What happens next will shape not just the island’s destiny, but also the future of a warming world.