Greenland, the remote island in the far north Atlantic Ocean, has been one of the least explored countries in the world. Exploration in the past century proved difficult due to harsh climatic conditions, lack of vegetation, and very few inhabitants. Still, the quest for precious stones and metallic ores lured people into taking a chance in a remote and uncharted territory.
Mining activities in Greenland were initially small and sporadic, but as technology advanced, mining operations expanded and revealed much of the hidden wealth that this frozen island possessed.
Today, it is believed that Greenland holds one of the world’s largest deposits of rare-earth minerals and metals. Mining has become a critical and lucrative industry for this island country. And it’s growing fast.
Discovery of Gold in Greenland
Some shreds of evidence suggest that gold was prospected by the first native population that settled on the island. A few tales of gold mining also date back to the time of Vikings, but most of these legends are not substantiated with evidence.
Industrial mining of gemstones and rare metals in Greenland started in the mid-twentieth century, but gold deposits remained unappreciated until the 90s.
The first extensive geological expedition for gold in Greenland was conducted in 1992 by a Canadian exploration company. The initial research yielded significant outcomes in the Southwestern region of Greenland. In the Napasorsuaq Valley, a valuable auriferous quartz vein was discovered, containing significant gold quantities. The following years saw more research, which revealed that Greenland is resting on several gold ore-rich deposits.
The first gold mine, ‘Nalunaq Mine,’ opened in 2004 to extract deposits in the Nanortalik belt. Nalunaq was the first mine opened in 25 years, and it proved to be a rich and promising gold source that generated more than 10 tons of gold in the following years. The mine was decommissioned in 2013 owing to falling gold prices and limited exploration.
Ongoing Gold Mining Projects
The success of the Nalunaq Mine lead to more deep exploration in Napasorsuaq Peninsula. Canadian Junior Exploration Company and Swiss consulting firm Helvetica Exploration Services performed multiple extensive explorations in the area in 2012, 2014, and 2016, which identified numerous gold-rich veins. Greenland state-owned Nunaminerals joint efforts with major international mining companies in this exploration.
The government issued many explorations permits to international investors. Most of these promising locations are present in Southwestern Greenland.
The Vagar project was opened between 2004-2009. NunaMinerals obtained an exploration license for 6800 km square and found free gold and sulfosalts ores in three to four veins. Experts believe that the quality of gold here is comparable with high-quality gold found around North America.
In 2012, another project, ‘Jokum’s Shear,’ was opened by Numnaminerals in the Danell Fjord area. This project has staked a lot on itself, and it is being called the most significant research in Greenland’s history.
AEX Gold Inc. became another major player in the gold mining industry and gained permits for the mineral-rich Nanortalik region. Its First project was Kangerluluk near the 120 km from the old Nalunaq Mine. The site was found highly prospective after extensive exploration. The company was finalizing a massive mining plan in 2020.
AEX also owns 100% rights for the old Nalunaq gold mine. They re-evaluated the area and concluded that the gold mine was still highly productive. Drilling at the site started in 2017 which is still ongoing. Another survey of Nalunaq in 2019 further proved that the site is highly viable and can be operated at a larger scale with further research.
Future of Gold Mining in Greenland
Despite its independence since 2009, Greenland’s economy is still largely reliant on financial assistance by Denmark. Gold mining is seen as a significant growth opportunity by the country, and it has already proven to be highly profitable. The industry is now gaining momentum, and Greenland looks pretty committed to mineral exploration activities and has encouraged foreign investment in the sector. The island country is also eager to reduce its dependency on the fishing industry, which has been at the center of Greenland’s economy.
The mining sector of Greenland is seen as a critical driver of economic growth, which can also create many jobs for locals. However, environmental concerns have been a major stumbling block in the way of gold exploration activities. There are significant mining-related risks to already fragile ecosystems, which must be carefully managed.
The future of gold mining in Greenland is now very promising. Both local population and international mining companies are working with Greenland’s Ministry of Mineral Resources to ensure the industry’s sustainable development. As the first mine, Nalunaq has already exceeded expectations, this frozen island will likely soon become one of the most sought-after destinations for gold mining companies around the globe.