Greenlanders will vote on March 11, as Energy Transition Minerals hopes to benefit from a potential Siumut Party victory, which may overturn a ban on uranium mining placed by the ruling Inuit Ataqatigiit Party. The mining company aims for economic self-sufficiency amid a significant dominance of rare earth supply by China, with concerns over environmental impacts influencing the political climate.
Greenlanders are preparing to vote in the upcoming election on March 11, amidst intensifying pressure from US President Donald Trump for Denmark to relinquish control of Greenland. Australia-based Energy Transition Minerals, which holds a license for contentious rare earth and uranium deposits, is hopeful that the Siumut Party will replace the ruling Inuit Ataqatigiit Party, currently in a governing coalition with Siumut and advocating for an independence referendum this year.
Since its ascension to power in 2021, the Inuit Ataqatigiit Party has imposed a ban on uranium mining, effectively curtailing the exploration of what Energy Transition Minerals claims could be the largest rare earth oxide deposit globally. Rare earth minerals, essential for producing batteries and magnets for electric vehicles and military applications, are predominantly controlled by China, which manages approximately 70% of the mining and 90% of refining capacities.
The Inuit Ataqatigiit Party’s opposition to mining stems from concerns over uranium contamination, particularly in areas populated by the indigenous majority of Greenland. In response, Energy Transition Minerals is optimistic that a Siumut victory will lead to the repeal of the uranium mining moratorium and facilitate economic independence from Denmark, as they strive for self-sufficiency.
An intriguing aspect of Energy Transition Minerals is that 7% of its shares are owned by China’s Shenghe Resources, though the company guarantees that it will cater to Western markets for its supplies. Additionally, existing trade deals between the United States, the European Union, and Australia may allow the firm to take advantage of US tax credits for rare earths, despite lingering skepticism on Wall Street regarding its future viability.
In summary, the upcoming March elections in Greenland could significantly alter the landscape for Energy Transition Minerals as they aim to resume rare earth mining. The Siumut Party’s potential victory could lift the restrictions placed by the current administration, promoting economic independence and increased revenue from natural resources. However, market skepticism remains due to the company’s current undervaluation and ownership complexities.
Original Source: www.gzeromedia.com
