ARCTIC: Mining Investments & more – 24th Dec 2024

Góðan daginn from BA! This is the Rorshok Arctic Update from the 24th of December twenty twenty-four. A quick summary of what’s going down North of the Arctic Circle!

The international sanctions being used to hamper Russia’s Arctic energy industry broke new ground this week. So far, sanctions from the EU and US have been focused on the Arctic LNG2 project, Russia’s project aiming to turn the country into the world’s largest gas exporter. As a result the project has yet to become fully operational. But on Monday the 16th, the EU’s newest round of sanctions targeted Russia’s oldest Arctic plan, the Yamal LNG, for the first time. While the EU has tried to block the expansion of Russia’s energy industry, the Yamal plant was left alone because European nations are still buying natural gas from it. The inclusion of Yamal LNG in the EU’s fifteenth round of sanctions shows that Europe is finally moving to reduce its reliance on Russian gas.

The united front against Russia didn’t stop there. On Monday the 16th at a European security coalition meeting, Estonia, Denmark, Finland, Germany, Iceland, Latvia, Lithuania, the Netherlands, Poland, Norway, Sweden and the UK released a joint statement announcing a coordinated effort to combat Russia’s illegal shadow fleet. These vessels have been selling Russian oil worldwide under the guise of another nation’s flag to avoid breaching sanctions. In the statement, all of the countries committed to requiring additional proof of legality from all suspected shadow vessels passing through their territory, and any vessels unable to comply will face serious legal consequences.

Finland took further steps to increase national security on Thursday the 19th, when the Ministry of Defense announced the new boosted military defense budget. The new budget for twenty twenty-five is worth over 6.5 billion US dollars, an increase of over half a billion dollars compared to twenty twenty-four. It includes large investments to build NATO infrastructure near the Russian border, as Finland further aligns itself with European allies and away from Russia.

National security requires more than just military investments though. On Monday the 16th, Norwegian state mining company, Norge Mining, announced its acquisition of Skaland Graphite, Europe’s largest producer of natural graphite, located in Norway’s Arctic region. After China recently announced it is restricting the sale of critical minerals worldwide, the acquisition of domestic supplies of critical minerals has become essential in safeguarding both regional and national security.

North America is taking similar steps. The Canadian and US departments of defense announced on Tuesday the 17th they are jointly funding a Yukon mine that contains one of the largest tungsten deposits on Earth. The funding consists of over $25 million US dollars which will be allocated to the Machtung Mine in the Canadian Arctic, owned by Fireweed Metals. China is the world’s largest tungsten producer but has been restricting sales of the material to countries it has diplomatic tensions with. Creating a safe regional supply is therefore considered critical to both the US and Canada, both of which currently rely heavily on overseas imports.

The U.S. Coast Guard is finally moving forward with plans for new heavy icebreakers. After years of delays, shipping news agency gCaptain reported on Friday the 20th that The Department of Homeland Security is expected next week to announce its final contract decision to begin construction on the country’s first icebreaker in fifty years. The U.S. currently operates only two heavy icebreakers, lagging behind Arctic nations like Russia, which has over forty icebreakers. These ships are crucial for Arctic security, scientific research, and maintaining shipping routes as ice melts.

The US is moving forward with its Arctic plans under a Trump government. On Monday the 16th, Alaskan Governor Mike Dunleavy publicly published his policy requests for the incoming President Trump. Dunleavy is asking him to reverse the widespread environmental and tribal protections put in place by President Biden. Dunleavy argues these policies harm Alaska’s economy and energy independence.

Trump had previously pledged to reauthorize drilling in these regions, setting the stage for potential environmental and legal battles as the Arctic faces growing scrutiny over resource development and climate concerns.

Another new government taking shape in the Arctic is in Iceland. A month after the national election, a coalition government was revealed on Friday the 20th in a press conference held by the new prime minister, Kristrún Frostadóttir. This new government is breaking ground in a number of ways, with Frostadóttir becoming the country’s youngest leader ever at just thirty-six years old. She is the leader of the Social Democratic party and her coalition partners, Viðreisn and the People's Party, are also led by women. This marks the first time Iceland has had a completely female leadership, and was dubbed by national media as the Valkyrie government, named after the infamous female warriors of Norse legend.

Over the sea to Greenland where the Canadian anti-whaling activist, Paul Watson, was released from detention in Greenland on Tuesday the 17th, according to Greenland Police. Watson had been held since July following an international arrest warrant issued by Japan, which accused him of breaking into a Japanese vessel during an Antarctic Ocean protest in twenty ten . Denmark’s justice ministry, after reviewing Japan’s extradition request, denied it on grounds that a fair sentence could not be assured. The decision led to Watson’s immediate release, ending months of detention and marking a significant legal victory for the outspoken conservationist.

Greenland’s future is in its own hands after the island’s Prime Minister, Mute Egede, released a statement on Monday the 23rd declaring that Greenland is not for sale and never will be. His comments came after the incoming US President Trump reiterated comments about gaining ownership and control of Greenland on Sunday the 22nd via his personal social network, Truth Social. Rasmus Jarlov, the leader of Greenland’s Parliament Defense Committee, called on the Danish government to assert his country’s status as an autonomous nation which is not for sale.

Moving over to Sweden where the promise of investment in its northern regions isn’t without complication. On Friday the 20th, Swedish state broadcaster SVT reported that the Spanish chemical giant, Fertiberia, plans to invest millions of US dollars in a cutting-edge fertilizer factory in Sweden’s Arctic capital, Luleå, by twenty twenty-six. The plant promises a boost for the green energy sector, with production powered by renewable hydrogen. However, environmental groups are concerned. The same company was linked to a severe ecological disaster in the Spanish town of Huelva, where in twenty seventeen a fertilizer plant caused long-term pollution. Critics worry similar issues could emerge in Luleå, urging stringent oversight to ensure safety and environmental stability.

are vulnerable to erosion by: 2100

To see exactly which areas are most at risk, take a look at the link in the show notes.

Predicting how warming might affect the Arctic could be done by looking to the past. A study from the Alfred Wegener Institute, published Thursday the 19th in Climate of the Past, examines the Arctic’s geological record to predict how it might respond to modern warming. Researchers analyzed the last major warming event, 120,000 years ago, when the Arctic experienced ice-free summers and a surge in vegetation.

Back then, temperatures soared over ten degrees celsius higher than today, and trees grew in the high Arctic—a scenario modern models predict but unfolding far faster. While past warming spanned 10,000 years, today’s changes are occurring within mere centuries, amplifying the risks to Arctic ecosystems and climate stability.

Aaand that’s it for this week! Thank you for joining us!

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