Donald Trump has once again revealed his interest in buying Greenland, an island of vital strategic importance, and for good reason. The wish is not some fanciful whim, as it is anchored to Greenland’s enormous mineral wealth and geopolitical significance. Some aspects of this article include the financial stakes for Trump’s wish and the resources involved and the reactions of Denmark and Greenland.
Historical context of Trump’s interest
Interest in the purchase of Greenland goes back to 2019 when Trump first made the suggestion of buying the island while he was president. He called it “essentially a large real estate deal,” referring to its strategic importance for both national security and economic purposes. The proposal was immediately rebuffed by Danish officials, with Prime Minister Mette Frederiksen labeling the plan “absurd.” The rebuff has not stopped Trump from continuing to show interest in purchasing Greenland, claiming it would help greatly if it were part of the United States.
Financial considerations for acquisition
While Trump has not publicly commented on a price he would pay for Greenland, educated estimates can be made based on historical context and economic potential. The island is believed to hold deposits of rare earth elements, uranium, gold, and other mineral deposits critical to the high and energy technology sectors. These findings have attracted global powers interested in securing access to such resources.
The economic value of the mineral resources in Greenland is immense. For example:
- Rare Earth Elements: Large deposits of REEs are found in Greenland, used by modern technologies such as batteries and electronics.
- Uranium: As nuclear energy becomes an increasingly sought-after source of clean power, uranium mining in Greenland can become extremely profitable.
- Gold and Diamonds: These precious metals remain of a high market value and may inspire investment if extraction activities are started.
Taking all the above factors into consideration, the hypothetical purchase price may very well vary from several billions to tens of billions of dollars when one considers the probable cost of these minerals and ongoing geopolitical tension combined.
How much would it cost?
CNN had estimated that the territory could have cost the US at least $1 billion in 2019. A brief glance at history here can be instructive. The Daily Mail reported that the US in 1946 wanted to purchase Greenland for $100 million in gold. Today that would be worth roughly $1.6 billion.
However, both those figures are well below Greenland’s GDP which was $3.24 billion in 2021.
Geopolitical implications
Located strategically between North America and Europe, GreenÂland is important for military and economic reasons, hosting Thule Air Base, a critical U.S. military installation with a significant importance for missile defense and Arctic operations. Following his line of national security, control over Greenland has been deemed by Trump as a necessity; it comes at a time when there are wider geo-political rivalries in the Arctic, including growing tensions between Russia and China.
Moreover, climate change continues to alter the face of the Arctic; resources that had long been out of reach become accessible. This gold rush mind-set has created a developing attitude among countries jostling to take advantage of such opportunities. One can construe Trump’s interest as part of a bigger play that sees the U.S. positioning itself to dominate this new frontier.
Reactions from Denmark and Greenland
The Danish government has rebuffed Trump’s plans for Greenland. Prime Minister Frederiksen reiterated that “Greenland is not for sale” and added that its future should be decided by its people. This is a view shared by the Prime Minister of Greenland, Mute Egede, who has publicly stated on numerous occasions that “Greenland belongs to the people of Greenland.” Responses such as these demonstrate just how complex any conversation about ownership or control over the territory.
These rejections notwithstanding, interest from the US toward Greenland’s resources is growing. The recent visit to the island by Trump Jr. showed at least within the Trump family that there is still appetite for dealing with the local population on looking into possibilities of cooperation, even if unofficially.
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