Brussels, 14/06/2012 (Agence Europe) - In search of raw materials for its industry, the EU has signed a cooperation agreement with Greenland, an autonomous region within the Kingdom of Denmark, which is rich in mineral resources.
The agreement was signed in Nuuk on 14 June. It takes the form of a letter of intent signed by Industry Commissioner Antonio Tajani, Development Commissioner Andris Piebalgs and Greenland's Prime Minister Kuupik Kleist, and provides for intensified cooperation between the EU and Greenland regarding joint infrastructure and investment or capacity-building in exploration and exploitation of raw materials.
At the present time, the share of EU companies operating in Greenland for exploration is only 15% (Denmark, Germany, Czech Republic and United Kingdom), while 58% of exploration companies are Canadian or Australian. Although three out of four operating licenses have been granted to European companies, the latter have a low involvement in ongoing exploration activities and own only a few exploration licences, with most being held by the United Kingdom, Germany and Denmark.
“This cooperation offers a win-win solution for both parties. For Europe this means that we can make sure that Europe's industry will be able to continue to play a leading role in new technologies and innovation”, Commissioner Tajani said. The agreement guarantees that European industry has better access to the mineral resources that are essential for its activities. Greenland's geostrategic position in the Arctic and its wealth in oil and minerals (lead, zinc, niobium, tantalum, rare earths, rubies and molybdenum) make it a “strategic partner in the long term”. The autonomous Danish region has an especially strong potential in six of the 14 critical raw materials identified by the European Commission (niobium, platinum group metals, rare earths and tantalum) and moderate potential for a further three elements. Greenland is also known for its rare earth deposits, a group of 17 minerals of great value for the high-tech industry and which are becoming scarce on the global market given the export restrictions imposed by China, which is at the origin of 97% of world rare earth production with 35% of all reserves. Greenland's share in the total of rare earth resources, which currently amounts to 3.44% (nearly 4.89 million tonnes), could triple in coming years. Although of great economic value, the agreement reached on Thursday also has a development dimension, says the European Commission. Commissioner Piebalgs has said: “The EU confirms its commitment to support Greenland's efforts, to explore the full potential of a sector which may become an important lever in the diversification of the Greenlandic economy”. (EH/transl.jl)