Trump says ‘massive’ oil, gas and mineral exploration is ‘getting ready to begin’ in Greenland

“There are Experts that are saying that the amount of easily available Oil is far greater than that of almost any land, anywhere in the World and, even more importantly, from a Security Purpose in the Defense and Offense of both the United States of America, and Europe, is second to none,” he wrote.

The brief announcement offered few specifics, leaving unanswered questions about which companies would participate, how the projects would be financed and when exploration could begin.

Greenland’s government, however, disputed the immediacy of Trump’s claim. Deputy mining minister Jørgen Hammeken-Holm told CNN that the territory was “very far away from ‘massive’ exploration.”

He acknowledged that several smaller exploration projects were underway, but cautioned that they could take years to become operational.

In September, the U.S. reached a security agreement with Denmark and Greenland that expanded American military access and opened the door to greater cooperation on mineral extraction. The deal appeared to ease tensions over Trump’s earlier threats to acquire the territory, but his latest remarks suggest the issue may be far from settled.

In his Truth Social post, Trump called the Danish territory “our new and beautiful Greenland,” even though it remains under Danish sovereignty.

The American business case for Greenland

Although Greenland is sparsely populated and has a relatively small economy, its geopolitical importance is considerable.

Much of that appeal stems from its extensive mineral deposits. Research by the Geological Survey of Denmark and Greenland (GEUS) and the U.S. Geological Survey shows the island holds extensive deposits of minerals critical to energy production, advanced technology and defense.

A 2023 GEUS study found that Greenland contains 25 of the 34 critical minerals identified by the European Commission. By U.S. standards, the territory has 39 of the 50 minerals considered essential to economic and national security, according to Sustainable Views, a sustainability publication associated with the Financial Times.

The American Action Forum, a D.C.-based think tank, has estimated the potential value of Greenland’s mineral resources at up to $4.4 trillion.

But having these resources and being able to extract them commercially are two very different things. As the Atlantic Council noted, “Greenland’s reserves are largely theoretical,” with many deposits located in remote Arctic regions where exploration and mining are difficult and expensive. Roughly 80% of the territory is covered by ice, according to CNN, adding another layer of complexity to any large-scale mineral extraction plans.

However, Trump’s continued pursuit of Greenland suggests the administration is willing to confront these obstacles, particularly given what’s at stake for the U.S.

China dominates the global rare earth supply chain, leaving the U.S. heavily dependent on its biggest geopolitical rival for minerals used in everything from electric vehicles to weapons systems. According to the International Energy Agency, China controlled 91% of global rare earth processing as of 2024.

What would it take to unlock Greenland’s resources?

Anthony Marchese, chairman of Texas Mineral Resources Corporation, outlined the financial and logistical challenges of developing Greenland’s mineral deposits in a January interview with Fortune.