President Trump’s new Greenland security deal comes just 17 days after a US-based company quietly closed a deal to purchase a Greenland mining company that would produce more than a third of the world’s rare earth magnet supply outside of China.
On Sept. 2, Greenland Mines, a NASDAQ listed US-aligned firm headquartered in North Carolina, closed a deal for the Sarfartoq rare earths project in southwest Greenland. The company announced that it planned to produce NdPr oxide – a compound of neodymium and praseodymium used in the manufacturing of magnets for EVs and wind turbines, as well as defense capabilities.
It said it planned to produce about one-third of the amount refined globally outside of China, as the US and other world powers position for access to vital rare earth minerals.
The company says the project has an estimated net present value of approximately $2.05 billion. The agreement, first announced in May, and points to new potential economic ties between the US and Greenland.
President Trump, in his Friday night statement, announced that the US, Denmark, and Greenland have entered into an agreement “that gives the United States permanent control over security, and all other needs, in Greenland, completely addressing ALL of our many U.S. concerns.”
“From now on, no U.S. adversary can EVER have a base in Greenland, have a military presence in Greenland, or make sensitive investments in Greenland, without our express written approval,” Trump posted on Truth Social.
The three governments are expected to sign the agreement next week at the United Nations General Assembly in New York.
Greenland Mines president Bo Møller Stensgaard praised the Trump deal: “Today’s announcement underscores what we have long believed: Greenland is becoming one of the most strategically important regions in the world. We applaud the US and the governments of Greenland and Denmark for advancing a framework that strengthens security, deepens cooperation among longstanding allies and recognizes Greenland’s importance to the future of the United States and the Western alliance. We believe that same strategic importance extends to the critical minerals required for defense, advanced technology and energy security.”
Greenland’s government said Saturday the deal would not relinquish its sovereignty. Greenland is a semi-autonomous territory within the Kingdom of Denmark.
Denmark’s Foreign Minister Lars Lokke Rasmussen posted about the deal Saturday on Facebook, writing: “Next week could be a good week… For both Greenland, Denmark and the USA.”
“As long as uncertainty is hopefully replaced by a binding agreement that strengthens security in the Arctic and the North Atlantic and thus also our common security in NATO and Europe – with respect for the Kingdom’s red lines. It is important at a time when the security policy situation in the Arctic has also changed.”
Neither side mentioned any text in the agreement related to economic considerations, and none of the parties released text of the agreement. Nor have they released text language relating to security arrangements in Greenland.
Reuters reported in advance of Trump’s announcement that parties were close to an agreement allowing components of Trump’s Golden Dome missile defense system to be housed in Greenlandic territory.
