Mentioned:
The United States of America has agreed to an ambitious new security agreement with Denmark and Greenland. But, why?
What’s happening:
- President Donald Trump has publicly stated that the United States has entered into a new agreement with Greenland and the Kingdom of Denmark to allow the United States to have permanent control over the security of Greenland
Why it matters:
- Greenland has come under intense political focus since the United States started pushing to potentially purchase the island, which has largely been driven by Greenland’s abundant critical minerals and rare earth deposits and its geographical position on the polar approaches between North America and Russia
Who is making moves:
- Critical Metals (NASDAQ: CRML) is advancing one of the single largest rare earth projects in the world in Greenland and recently began a new 10,000 metre drilling program
- Greenland Energy (NASDAQ: GLND) owns an oil project located in the historic Jameson Land Basin in East Greenland which potentially contains up to 13B barrels of recoverable oil
Going deeper:
- As part of the new proposed deal, non-NATO countries would be barred from establishing a military base in Greenland
- President Donald Trump has also publicly stated that under the new proposed agreement the United States government would have final approval on other adversary countries making sensitive investments in Greenland
The fine print:
- The deal between Greenland, the Kingdom of Denmark and the United States has still not been formally signed by all three governments and it must go through parliamentary procedures in both Denmark and Greenland before it can take effect
