Mineral wars: Why Trump needs Greenland
According to geologist James Cooper, the ‘Greenland Grab’ is all about resources and an escalation in US strategy to secure supply chains.
Trump’s known for pulling off big deals.
Buying well-known golf courses in Scotland to grabbing swathes of prime real estate in Manhattan.
But what about an entire country?
Well, if Trump gets his way, the massive island nation of Greenland could become the 51st state of America!
On the surface, that’s an almost unbelievable development.
After all, this autonomous territory sits under the Kingdom of Demark, a long-time American ally and one of NATO’s founding members.
Yet, according to Trump, he’s prepared to use military force to grab hold of Greenland.
While this could be a familiar Trump blaster, the plan does appear to have a profound motive. Greenland is located in a highly geologically active region, providing abundant resources.
But thanks to glacial melting over the last couple of decades, accessing Greenland’s potential bounty is set to become much more manageable.
Bedrock that once lay several hundred meters below the ice is now exposed, opening up new mineral frontiers.
This opportunity could lie at the heart of Trump’s plan to capture Greenland.
Geologists can now peer directly into the outcropping rock and examine the mineral potential over this enormous landmass.
Given the rapidly melting ice, moving machinery, like drill rigs, for exploration is now much more straightforward. So, too, is getting those minerals out of the ground.
Russia is already discussing the potential of unlocking massive new mineral fields across its vast Siberian arctic territories as ice sheets subside. And it seems America wants in on this action, too.
But why would the US, a leader in advanced technology, finance, and banking, suddenly be interested in something as basic as raw materials?
Commodities: The front line battleground in the emerging trade war
As you may know, China holds a firm grip on critical mineral supply.
This is the thorn in the US hegemony’s side, holding it back from dictating the terms of global trade.
If the country pursues trade tariffs and other measures too aggressively, it risks a blockade of critically important resources dominated by Chinese supply.
One example is the battery supply chain.
As you can see below, China (orange) is a force to be reckoned with in this growth sector:
But mineral dominance also spills over into technology and defence.
This is perhaps why Trump wants access to new mineral frontiers… Trade wars and the battle to secure mineral supply chains are becoming a key focus for national security.
That’s why the US Department of Defence (DoD) has invested billions in mining projects in the US, Canada, and Australia.
Like its US$120 million contract with Australian miner Lynas [ASX: LYC], establishing a first-of-its-kind commercial Heavy Rare Earths (HRE) separation facility in the United States.
Or the DoD’s US$37.5 million investment in Canadian junior Graphite One [TSX-V: GPH], which is little more than an early exploration project!
And that’s why Greenland could become a key focus for American interests in 2025.
Already, Trump is putting boots on the ground, with his son, Donald Trump Jr., visiting the region earlier this month.
A Repeat of America’s Alaskan Playbook
As crazy as that seems, this wouldn’t be the first time the US has gained control of a massive northern frontier.
Back in 1867, under President Andrew Johnson, America purchased Alaska from Russia.
At the time, Johnson copped a swarm of criticism for his decision to buy this frozen, inhospitable landmass. Sceptics dubbed the deal ‘Seward's Folly’, a polite way of saying useless land.
We now know that’s not the case at all.
Alaska has rich oil fields and some of the world’s largest copper and gold deposits. And just like Alaska, Greenland is also endowed with mineral wealth.
To date, relatively little exploration or mining has occurred over this emerging frontier.
However, the geological survey of Denmark has detected strong potential for zinc, lead, gold, iron ore, heavy and light rare earth elements, copper and oil.
These important resources might allow the US to unwind its reliance on China… eventually.
2025: Expect more conflict centred on commodities
However, the key point is that announcements like this speak to genuine concern about global mineral supply.
A dramatic shift from 5-10 years ago… Where investment in new mine developments and exploration sank to historic lows. Commodities have been taken for granted for years, especially in the West.
The building blocks of modern civilization and the fuel that drives every aspect of human civilization… Investment in resources needs to play catch-up in a big way.
Without a stable supply, chaos erupts. And dramatic announcements, like gaining control of Greenland, speak to the growing reality that the West has been caught short.
The fallout from these events will have consequences… The least will be the return of strong attention to certain resource stocks linked to this trend.
Pay close attention in 2025...
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James is a former exploration geologist, turned mining analyst with postgraduate qualifications and has extensive operational and financial experience in the mining industry.
He’s worked for major and junior companies throughout Australia and Africa, including Barrick Gold, Equinox Minerals, Crosslands Resources, and Northern Star and has been involved with all phases of exploration across a host of different commodities.
Now the resident commodities analyst at Fat Tail Investment Research and editor for the Diggers & Drillers Publication, he brings he’s past experiences to the table offering investors an insiders take into the coming resurgence in mining stocks.
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All advice is general in nature and has not taken into account your personal circumstances.
Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.
Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.
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James is a former exploration geologist, turned mining analyst with postgraduate qualifications and has extensive operational and financial experience in the mining industry. He’s worked for major and junior companies throughout Australia and...
Expertise
James is a former exploration geologist, turned mining analyst with postgraduate qualifications and has extensive operational and financial experience in the mining industry. He’s worked for major and junior companies throughout Australia and...
Expertise
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