Greenland's election may constrain growing oil and mineral industries, while Shell suffers Arctic setback.
The recent general election saw opposition leader Aleqa Hammond's Siumut party winning 42% of votes, or around 14 seats in the 31-seat parliament, with incumbent Premier Kuupik Kleist’s Inuit Ataqatigiit party taking just 34%. However, Hammond, who will become Greenland's first female Prime Minister, will have to form a coalition government as she failed to gain a majority.
The pre-election debate had been around the country's rich resources, the activities of foreign investors in mining and oil and potential environmental damage.
Greenlanders are sensitive about their mineral wealth and the potential of pollution by 'new' industries such as mining and oil which are replacing traditional Inuit trades of fishing and hunting. A melting ice cap is increasing access to rare earth minerals (essential to manufacturing many electronic devices). However, these are often mixed with uranium. The current ban on the extraction of uranium by Greenland's former colonial power, Denmark, will be a focus for Hammond who also wants mining firms to pay royalties.
Meanwhile, elsewhere in the region, Shell has been banned from drilling for oil in Arctic waters. A US government review has indicated that the company should be better prepared for the extreme conditions. The findings could cost Shell time and money after the oil giant has already spent several years and $4.5bn securing permits to drill in Arctic waters.
The ruling is the latest in a series of setbacks that have delayed Shell's operations in the region and sensitivities were further heightened after Gazprom also suffered a rig failure at the end of last year. According to the Interior Minister, Ken Salazar, "Shell will not be able to move forward into the Arctic to do any kind of exploration unless they have this integrated management plan put in place, it's that plain and simple."