Much has been made of China’s monopoly on rare earth metals, supplying more than 90% of the world’s supply. With the metals such an important component to all things technology-- as well as a key component in electric cars and defense systems, it’s no wonder that the rest of the world is concerned about future supply. China has long used the dominance as leverage in trade agreements, not to mention to control prices.
The scramble is on to mine the rare earth metals in other parts of the world, particularly in the US, Australia, Canada and now .. Greenland? It’s true. According to the Sunday Times UK, it’s thought that Greenland is home to the largest deposit of rare earth metals in the world. Beneath the ice and rocks of the Ilimaussaq Intrustion on the southwestern shore may lie the answer to China’s rare earth dominance. It’s estimated that the deposit could supply 25% of world demand for fifty years.
The company that stands to benefit from this is Australian based Greenland Minerals (OTC:GDLNF). The stock soared more than 75% in a single day back in September when it was announced that the Greenland government is willing to ease restrictions on uranium mining. For decades uranium mining was banned but it appears that on a case by case basis, they may allow some uranium mining-- particularly if it means the rare earth metals come along with it. The government likely smells the green stuff too, as Greenland will gain complete control of its natural resources from Denmark beginning next year. The Sunday Times reports that the rare earth mining alone could potentially double Greenland’s GDP.
Disclosure: No positions