Greenland Mines Signs LOI for Iceland Brownfield Hub with $1B Savings
Greenland Mines signed a non-binding LOI to assess 100,000–200,000 m² brownfield industrial sites in Iceland equipped with deep-water ports and geothermal power connections. The company aims to cut processing energy costs from roughly $0.20 to under $0.03 per kWh, potentially saving over $1 billion across the mine’s lifespan.
1. Non-Binding LOI for Icelandic Sites
Greenland Mines entered into a non-binding Letter of Intent to evaluate multiple 100,000–200,000 square-meter industrial-zoned sites in Iceland. The initial agreement focuses on technical, commercial and permitting discussions for potential downstream processing of gold, palladium, platinum and critical metals from the Skaergaard project.
2. Energy Cost and Carbon Footprint Reduction
The strategy targets replacing diesel-based power—currently costing up to $0.20 per kWh—with Iceland’s low-carbon geothermal and hydropower, aiming for tariffs below $0.03 per kWh. At a full-scale 50 MW plant (approx. 430 GWh/year), this could drive over $1 billion in life-of-mine energy savings and materially lower the carbon footprint.
3. Brownfield Infrastructure and Logistics
Several sites under review include existing industrial buildings, heavy foundations and deep-water harbor access, enabling faster refurbishment and lower capital intensity. Proximity to Iceland’s robust power grid, experienced workforce and year-round ice-free ports enhances logistical integration with East Greenland’s mining operations.
4. Integrated North Atlantic Value Chain
Greenland Mines envisages ore crushing and sorting in East Greenland, followed by shipping to Iceland for low-carbon processing and onward delivery to North American and European markets. This corridor leverages 400–600 km maritime links (20–30 hour sailing) to create a geopolitically secure supply chain for critical minerals.