The foreign investors needed to make major mining projects a reality in Greenland may be waiting to see if locals are willing to invest in the country's future, according to a report.
Many projects are already on the drawing board. London Mining has already received the go-ahead to start work, and other permits are pending. However, many foreign investors are stalling.
“Foreign investors, especially those from Asia, are reluctant to invest unless they see local companies getting involved,” Minik Rosing, a University of Copenhagen geologist who was the lead author of a recent report detailing the prospects of the country’s nascent mining industry, told the Arctic Journal.
Rosing said it could end up being the case that Danish companies will need to help attract foreign money to the self-governing country.
“Half the money needed to finance the Isukasia iron mine will need to come from outside of Greenland,” said Rosing. “If just part of that could come from Denmark, it would help to get things rolling.”
Danish co-investors would show potential international partners that there are those close to home who believe in the viability of mining projects in Greenland, and Rosing said he was ‘frustrated’ with Greenlandic scepticism toward Danish investors.
“We will be competing against the entire world and need to play every card we can. One of those is co-operation with Denmark.”