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Denmark’s investment fund plans to increase investments in Greenland and has a “huge appetite” to do more in the Arctic island that has been thrust into the spotlight by US President Donald Trump’s threats to acquire it.
The chief executive of the state-owned Export and Investment Fund of Denmark (EIFO) said it had hundreds of millions of euros to deploy this year and would allocate a “significant amount” of that to Greenland’s critical minerals and energy sectors.
“We have a huge appetite to do more” in Greenland, Peder Lundquist told the FT, adding that there was a “good pipeline” of potential investments in the territory.
Lundquist’s comments come in the context of a diplomatic row sparked by Trump’s stated desire to buy or even invade Greenland. The controversy has also highlighted long-standing grievances about Denmark’s historic treatment of Greenland and whether it has invested enough in the island.
Trump’s threats have drawn international attention to the future of the Nato alliance, Arctic security as well as the global race to secure access to the critical minerals key to the green transition and defence industries.
Lundquist said EIFO was taking a “keep calm and carry on” approach with regard to Greenland and wanted to be “a long term reliable partner” for the island, including during a time of “uncertainty and turmoil”.
EIFO has four equity investments in Greenland, including in London-listed Amaroq Minerals, which started gold production in 2024 and is exploring for other minerals including nickel, which is used in batteries that power electric vehicles. Its other investors include the Louis-Dreyfus family.
EIFO has also provided $36mn in the form of guarantees and loans to groups in the territory, including to London-listed GreenRoc Strategic Minerals, which is seeking to reopen an old graphite mine.
Lundquist said the bank aimed to make another three to five investments in Greenland this year, with a focus on the minerals and energy sectors. It did not expect to fund military spending on the island, which would typically be financed directly by national governments, he said.
Many Greenlanders argue that Trump’s interest has pushed Denmark to raise its investments in the territory that is home to 57,000 mainly Inuit inhabitants.
Copenhagen said in October it would spend $4.2bn to boost security in Greenland, having announced the previous month a plan to allocate $250mn for infrastructure and healthcare, in addition to the $700mn annual subsidy it already gives the island.
Greenland is in principle rich in minerals but has few operating mines due to the harsh climate that presents logistical challenges. Still, GreenRoc’s chief executive Stefan Bernstein said the territory’s government was determined to “build a minerals industry”, with investor interest in the region growing.
Greenlandic officials have complained that Denmark, the EU and the US were slow in investing, with business minister Naaja Nathanielsen telling the FT in May that Greenland could look to other countries such as China to help develop its minerals industry.
Aki-Matilda Høegh-Dam, a Greenlandic member of Denmark’s parliament, said Nuuk had long tried to talk to Copenhagen about some of the wrongs of its colonial past and getting more of a say in foreign policy.
“All of these are only being listened to because of the pressure we’re experiencing from the United States. So there’s also some good that can come with it, but I’m also saddened that we had to come to this before we were taken seriously,” she told foreign journalists on Thursday.