globalEDGE International Business Blog

Greenland is covered by ice on nearly 80% of its surface, making business activities in this area rather difficult. However, as we all know, the northern ice caps are beginning to melt due to rising global temperatures. In fact, it has been predicted that in the next few decades the Arctic Ocean will be almost all open water. While this is bad for the environment, it does open up new opportunities for business.

Greenland is rich with several valuable natural resources. It has an abundance of lead and zinc, both of which have been rising in prices. With ice no longer standing in the way, there is a lot more mining potential. One company in particular from Australia, Ironbark, already has plans to open a zinc and lead mine in the northern part of the country. There are also several Canadian companies that have expressed interest. Not only do the warmer temperatures reveal previously hidden resources, they allow the mines to operate year round, leading to even more profits.

Metal isn’t the only thing that can be found in Greenland,  there could be large amounts of oil under the ice as well. This has caught the eye of Cairn Energy, a Scottish oil company, and they plan to begin drilling as soon as 2011.

The melting ice caps may cause problems for the environment, but it could allow oil and mining companies who expand to Greenland to freeze out the competition.