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Greenland opens the door to uranium and rare earths extraction

Greenlandic government says decision is necessary in order to address "stagnant economy" · Opposition criticizes "undemocratic" process · Decision could allow exploitation of mineral site in the south of Greenland · Denmark recalls that uranium exports must have permission from Copenhagen

With 15 votes for and 14 against, the Greenlandic Parliament decided yesterday to lift the ban on the extraction of uranium, a ban that had been in place since 1988. The decision also opens the door to extract rare earth minerals, which are currently fundamental for the manufacturing of various technologies (computer memories, lasers, X-ray tubes...). Rare earths main producer is now China.

The ban was upheld by the former ruling party in Greenland, leftist pro-independence Inuit Ataqatigiit (IA), who lost power in last March election. The current government -led by the pro-sovereignty social democratic Siumut and supported by the conservative Atassut- wants the exploitation of natural resources to become one of the cornerstones for building an economically self-reliant Greenland, as the island nation prepares to eventually achieve independence from Denmark.

Greenlandic Prime Minister Aleqa Hammond defended yesterday the extraction of uranium for economic reasons, The Arctic Journal reports. According to Hammond, lifting the ban veto is necessary given that "unemployment rises and the cost of living goes up, while our economy remains stagnant".

A controversial decision

The division that the outcome of the vote in Parliament reflects is also visible in the Greenlandic society. Opposition groups yesterday demanded that lawmakers did not lift the ban on uranium extraction. Critics believe that it could negatively impact the environment, and argue that it is not clear that Greenlanders agree with the measure.

Hammond said last month that his government was ready to hold a "consultative referendum" on the issue in southern Greenland, the place where the Kvanefjeld site is localted. Kvanefjeld mineral deposit is rich in zinc and rare earths, but also uranium. The company that wants to exploit the site, Greenland Minerals and Energy (GME), argues it is impossible to get rare earths without also extracting uranium. Meanwhile, the proposed referendum has not been held.

On behalf of the Inuit Ataqatigiit, Sara Olsvig has criticized the way Hammond government has led the process to allow for the extraction of uranium. According to Olsvig, the process has been done through an "undemocratic approach", so that decisions are taken "without the involvement of Parliament, and without further public involvement".

Danish permission

The dossier has yet another dimension. Greenland has the power to decide on its natural resources, but not on foreign affairs and defense, which remain in the hands of Denmark. Danish Prime Minister Helle Thorning-Schmidt has recalled that exports of uranium must have the approval of Copenhagen, as this could affect matters related to the security and international relations of Denmark. Thorning-Schmidt has said she is in contact with the Greenlandic government in order to address the issue together.

(Image: A group of rare earths.)