Potential US involvement in mining is "problematic," a minister has said, as the autonomous Danish island reassesses global ties

Greenland is weighing the possibility of inviting Chinese investment to develop its mining sector in light of tensions with the US and limited engagement with the EU, the island's business and mineral resources minister, Naaja Nathanielsen, told the Financial Times on Tuesday.

An autonomous territory of Denmark, Greenland holds vast but hard-to-exploit reserves of minerals such as gold and copper. Foreign capital is essential for developing the resources, yet recent geopolitical tensions have made it difficult to secure reliable partnerships.

"We are trying to figure out what the new world order looks like," Nathanielsen said, adding that Greenland was "having a difficult time finding [its] footing" in evolving relationships with its Western allies.

The Arctic island signed a memorandum of understanding with the US on mineral development during President Donald Trump's first term. However, according to Nathanielsen, it's coming to an end. The government in Nuuk had tried, unsuccessfully, to renew it during the administration of former US President Joe Biden.

Following Trump's return to office in January, Greenland hoped to revive discussions of renewing the memorandum. Instead, the US president talked about purchasing the island and refused to rule out using military force to assert US sovereignty over it.

Nathanielsen called such statements "disrespectful and distasteful," adding that Greenland "has no wish to be American." 

China has shown interest in the Arctic's mineral wealth, including oil, gas, and minerals. It has invested in Russian energy projects and has expressed interest in Greenland's mining sector. No Chinese companies, however, are currently operating active mines in Greenland, although one firm holds a minority stake in an inactive project.

According to Nathanielsen, Chinese investors might be holding back because they don't want "to provoke anything." 

"In those terms, Chinese investment is of course problematic, but so, to some extent, is American," she said.

Greenland would prefer closer cooperation with the EU, which aligns more closely with its environmental priorities, the minister said. However, the bloc's engagement has been slow, with only one project, led by a Danish-French consortium, currently in development. The mine is expected to begin operations within five years.

READ MORE: Greenland awards major mining contract to Danish-French firm

At present, Greenland has two functioning mines: one for gold, operated by the Icelandic-Canadian firm Amaroq Minerals, and another for anorthosite, a light-colored industrial rock, managed by a subsidiary of Canada's Hudson Resources.