U.S. expands military presence in Greenland under new Denmark agreement

The United States and Denmark signed a security agreement on the sidelines of the United Nations General Assembly that will increase the American military footprint in Greenland while maintaining Danish sovereignty over the territory. The deal comes as Washington seeks to secure access to the island's strategic location and its untapped natural resources.

Greenland sits between North America and Europe along key air, sea and missile routes, and its melting ice is opening new shipping lanes that attract interest from several world powers. The U.S. already operates Pituffik Space Base, formerly Thule Air Base, which supports missile warning, missile defense and space surveillance.

American officials and industry representatives say the island may also hold deposits of rare earth minerals, nickel, copper, palladium and cobalt that could reduce U.S. reliance on China and Russia. "We don’t want to be dependent on China for our rare earth minerals, and we don’t want to be dependent on Russia for them either," said Robert Price, CEO of Greenland Energy Company and president of USFM Corporation.

Price added that his company is pursuing permits for an exploratory oil well slated for 2027 on Greenland’s eastern side, noting similarities between the region’s geology and the North Sea. He cited current disruptions in the Strait of Hormuz as a factor driving interest in Arctic oil exploration.

"What it does is it shores up long-term investment in Greenland, and that’s what our projects are," Price said, referring to the potential impact of the security pact on future mineral and energy projects.

The agreement is intended to bolster investor confidence in long-term projects while expanding U.S. defense capabilities in the Arctic.