Europe
looks to open up Greenland for natural resources extraction
Melting
of icy surface opens up possibility of extracting rare earth metals
and gemstones, but many fear it could destroy the Arctic
31
July, 2012
Europe
is looking to open a new frontier in the ever more urgent quest for
new natural resources – the pristine icy wastes of Greenland.
Oil and gas have
been the focus of exploitation so far – but the EU sees just as
much potential in a massive opening up of mining operations
across the world's biggest island, according to Antonio Tajani, the
European commission's vice-president and one of the most powerful
politicians in the union. He called the move "raw material
diplomacy".
Latest
satellite data reveal that 97% of the surface of the Greenland ice
sheet underwent surface melting over four exceptionally warm days in
July, indicating natural resources will become more available for
extraction in the coming decades.
The
potential gold rush is being welcomed by some in Greenland, but has
raised fears of environmental damage, pollution and despoliation
across the Arctic that
could destroy one of the world's last wildernesses.
Tajani
said: "Greenland is hugely important in terms of natural
resources, it has vast opportunities. We are currently working very
hard with the prime minister of Greenland on this – we are working
on our own agreement with Greenland on raw materials."
He
said: "This is raw material diplomacy. We have allies working on
this worldwide."
Greenland's
government is keen to exploit the island's natural wealth in order to
alleviate some of the serious poverty and social problems that blight
the indigenous population.
Henrik
Stendal, of the Greenland government's mineral extraction department,
told the Guardian: "The government would like to have another
source of income – currently there is just fishing, and a little
from tourism, so this is a big opportunity for us. These explorations
can be done sensitively, we believe."
Only
one company is currently operating a productive mine in Greenland,
producing gold. But at least five are in the advanced stages of
setting up new mines, and more than 120 sites are being explored.
Greenland is thought to contain vast mineral wealth, including rare
earth metals, gemstones and iron ore.
As
competition from developing world pushes up price of energy,
metals, minerals and other raw materials, finding new sources of
supply is at a premium – putting densely populated Europe at a
disadvantage, with little opportunity to expand its oil and gas
supplies or mining operations.
But
Greenland – with strong historical ties to the EU through Denmark,
though the island now has home rule – represents a vast and largely
untapped resource. Drilling for oil in Greenland's waters is now at
the exploratory stage, having been impractical until recent advances
in deep sea drilling. Mining has also been all but impossible across
most of the country, which is covered in a 150m thick sheet of ice
except for a few coastal strips, but melting ice and new techniques
are likely to bring more of the region's potential mineral resources
within reach in the coming years.
But
Europe may face competition. China is already ahead; one of the most
advanced metals mining projects in Greenland is nominally owned by
London Mining, a UK company, but most of the finance and direction
comes from China. Other countries are also eyeing the prize –
although Greenland's historical ties are mainly with Europe, it is
geographically close to the US and Canada.
Tajani's
aggressive push into the Arctic puts him on a potential collision
course with Greenpeace, the global environmental pressure group.
Greenpeace recently opened up a new campaign focusing on the threats
to the Arctic – one of the last places on earth where the
industrial revolution and exploitation of natural resources have yet
to penetrate. As part of the campaign they closed
74 UK Shell petrol stations in
protest at the company's moves to drill for oil in the Arctic.
Jon
Burgwald, an Arctic expert at Greenpeace, said that mining operations
can bring pollution and destruction: "There could be some very
harsh environmental consequences."
Mikkel
Myrup, chair of the Greenlandic environmental campaigning group
Akavaq, said that dealing with waste and "tailings" from
the mines would be a key concern, as well as handling the toxic
chemicals that are used in some forms of mining. "Mining does
not have the same risks as oil drilling, but mining can be very
hazardous to the environment. It's a real worry, and we don't think
that the Greenlandic government has the capabilities to regulate this
in the way that's needed – they can't stand up to these
multinational companies. The public haven't been given the full
picture," he said from his office in Nuuk, Greenland's only town
of any size, with 15,000 inhabitants.
Burgwald
also warned of the potential social consequences. "What happens
when you have [scores of] Chinese workers living next to a small town
of indigenous people?"
Greenpeace
has already succeeded in delaying attempts by Cairn Energy to
establish oil and gas drilling operations in the Arctic seas.
Activists have more such protests in their sights. Burgwald said that
if there was damage or prospective damage from mines in Greenland,
they too would attract similar actions. "We would certainly
oppose it if it wasn't being done right."
He
did not rule out mining in Greenland altogether, if done in a
sustainable manner, but said that current plans were unclear and
Greenland's government would need substantial help in order to set up
the right standards that would avoid the dangerous consequences.
There was little sign of such help being forthcoming yet, he said.
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