Keeping the upper hand in the rare earth minerals race isn’t just about defending the global economy and international security, but also defending western values and the free world.
Over the past decade, Greenland has increasingly been recognized by policymakers, investors, and security analysts as strategically important.
It might be considered that the growing interest stems purely from territorial, expansionist ambition. But in reality, it's because of its growing role in mineral supply chains, Arctic governance, and the resilience of Western economic systems.
As demand for rare earths increases, decisions made in Greenland will help determine whether critical resources remain within transparent, rules-based markets or move further into jurisdictions with fewer safeguards.
Today, there's an opportunity for Western democracies to stand up for what they believe in and distinguish themselves from authoritarian systems.
This specific case calls for the U.S. to speak up and expect allies to uphold legal standards that support free markets, long-term investment, and geopolitical strategy.
Australian mining company Energy Transition Minerals spent years navigating the bureaucratic hurdles forming Greenland's regulatory system to secure a license to explore and ultimately extract rare earth minerals at the Kvanefjeld site, which is one of the largest untapped sources of critical rare earths.
The company invested tens of millions of dollars, met every requirement the Greenlandic government demanded, and completed extensive environmental and technical assessments about the project.
It was a textbook example of lawful and responsible commercial conduct by a foreign investor in a democratic jurisdiction.
However, when a left-wing government came into power in 2021, Greenland retroactively changed the laws governing rare earth development, introducing a ban tied to naturally occurring elements – specifically uranium.
This was in response to appeasing environmental activists.
Through an after-the-fact ban tied to a naturally occurring element in rare earth deposits, the government revoked ETM's license for Kvanefjeld.
Years of work and millions in investment were erased by an overnight, short-sighted political decision.
This goes well beyond any singular mining project.
The retroactive nullification of legal contracts and seizure of property without due process undermines the principles that market economies rely on.
When governments rewrite rules to suit shifting political pressures, contracts lose credibility and investment becomes contingent on political favor rather than compliance.
Western governments regularly emphasize supply chain security, economic resilience, and democratic norms.
Allowing allied governments to disregard property rights and due process without consequence exposes a serious inconsistency. Investors take note: it sends a damaging message that political convenience outweighs the law.
This inconsistency weakens Western credibility and discourages investment needed to secure long-term stability.
Blocking responsible mining in democratic countries does not eliminate the global demand for rare earths but shifts production to countries with fewer safeguards and less transparency.
Critical supply chains are then pushed beyond the reach of accountable legal systems, resulting in corrupt and irresponsible mining practices elsewhere.
Greenland’s mineral resources matter.
They support advanced manufacturing, renewable energy, defense, and technology.
Their location in the Arctic is strategically significant, as the region becomes increasingly central to global security. Our long-term strategy should be looking to the north.
If Western democracies are serious about upholding legal and commercial standards and promoting responsible resource development, then we must make it clear that Greenland's treatment of ETM is unacceptable.
Defending rule of law among allies is not about coercion or intervention, but maintaining shared standards that make cooperation and investment possible.
Across political ideologies, there is a broad agreement on the importance of property rights, rule of law, and national security.
What's happened to ETM in Greenland is a violation of all three.
If we can't defend these principles to our own allies, we erode the foundations that make Western markets credible, investable, and secure.
Greenland still has an opportunity to restore confidence by reaffirming its commitment to due process and legal integrity.
Doing so would strengthen its standing with investors and reinforce the broader economic system on which Western security and prosperity depend.
Duggan Flanakin is a senior policy analyst at the Committee For A Constructive Tomorrow who writes on a wide variety of public policy issues. Read more Duggan Flanakin's reports — Click Here Now.
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