Danish state investments in mining and vital projects in Greenland have increased through the EIFO fund, which has doubled its financial support for local projects in recent years, according to local sources.
Views from inside the Nalunaq mine
According to DR, two workers in yellow overalls stopped in front of a massive rock face in southern Greenland to insert hundreds of pipes packed with explosives into pre-drilled holes. They then connected the pipes with wires to a detonator, and in a thunderous moment, a new fissure opened, signaling the path through the mountain toward more gold.
Production value and resumption of work
The Nalunaq mine delivered the equivalent of 280 kilograms of gold this year, an amount roughly the size of a small suitcase but worth more than a quarter of a billion Danish kroner. The mine resumed operations in 2022 after being shut down since 2013 due to low gold prices.
The role of the EIFO fund in financing mines
The Danish Overseas Investment Corporation (DOIC) and the EIFO Development Fund invested 100 million Danish kroner in Amaroq, the owner of the Nalunaq mine. Mine manager Eldur Olafsson said, "The investment from EIFO has had a tremendous impact on our operations.".
Danish investments in Greenland are expanding
«A few years ago, we decided to intensify our cooperation with Greenland, bringing more seriousness and financial support,» said EIFO Executive Director Peder Lundquist. EIFO’s business in Greenland has grown nearly 30-fold over the past decade to 460 million Danish kroner, spread across 37 companies, according to figures obtained by DR.
Geopolitical motives behind investments
Lundquist also linked the fund's decision to increase its focus on Greenland to a "changing geopolitical climate" between the West and China over vital supply chains, as well as to US pressure to exert control over the island. He acknowledged that "there is a significant political backdrop" but denied that all of EIFO's investments were a direct response to US President Donald Trump.
Graphite mining on Amitsoq Island
On Amitsoq Island, 10 kilometers from Nalunaq, a team of six Greenroc workers is drilling some 150 meters underground in search of graphite. CEO Stefan Bernstein said, "The 40 million kroner loan we received from EIFO was crucial to completing this costly work program.".
European support for raw materials projects
The European Commission has included the Greenroc project in its list of rare strategic projects, which qualifies the company for political support, expert advice, and possibly direct funding in the future.
US Rare Earth Project in North Greenland
About 100 kilometers northwest of the Nalunaq mine, Tanbreez is partnering with the U.S.-owned Critical Metals Corp. on a rare earth mining project. The U.S. Export-Import Agency (EXIM) has established a framework for a $120 million loan. ’The project combines economic benefits with political presence, which accelerates its progress,‘ said Tanbreez CEO Thomas ‘Tyt’ Mogensen.
Future outlook on investments
The EIFO Fund confirms that it is continuing its investment «journey» in Greenland, and expects its financing contributions in the mining, fisheries and tourism sectors to increase in the coming period, reflecting the Danish desire to maintain a strategic presence on the island.
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