Places in News: Greenland
Context:
ü A diplomatic row has erupted after US President Donald Trump expressed interest in purchasing Greenland for defence purposes
ü This is a move strongly rejected by Denmark and Greenland.
ü Reports suggest the US views the autonomous Danish territory as strategically vital.
Strategic Significance
ü Greenland’s location in the Arctic is militarily critical.
It hosts the Pituffik Space Base(formerly Thule Air Base), the US’s northernmost military installation.
ü The base is essential for monitoring and intercepting intercontinental ballistic missiles, acting as a buffer against potential threats from Russia and China.
ü In recent years, China and Russia have reportedly scaled up their military capabilities in the Arctic, according to an Arctic Institute research paper.
● Resource Potential:
ü Greenland has large reserves of not just traditional resources- gold, nickel and cobalt.
ü Greenland holds some of the world’s largest undeveloped deposits of rare earth metals (neodymium, dysprosium)
o They are crucial for electric vehicles, wind turbines, and military technology.
ü
As climate change melts the island's ice sheet, these mineral deposits are becoming more accessible, intensifying global competition for access.
China factor:
ü China is currently the leading supplier of Rare Earths.
ü They account for 11% per cent of the investments in the mineral sector in Greenland, just behind Australia and the US.
ü The Chinese presence is not limited to the mineral sector in Greenland.
o It has also been involved in creation of new infrastructure, aimed at facilitating greater usage of Arctic Sea routes.
● Historical Precedents of US Acquisitions:
ü The US has a history of purchasing territories to expand its strategic reach:
Louisiana Purchase, 1803:
▪ It was acquired from France for $15 million.
ü Alaska
It was purchased from the Russian Empire for $7.2 million.
ü US Virgin Islands:
Originally the Danish West Indies, bought from Denmark.