A little-known Australian junior miner has found itself in the global spotlight following renewed speculation about U.S. President Donald Trump’s interest in acquiring Greenland.

Shares in Energy Transition Minerals (ASX: ETM) surged by as much as 150% in the first two weeks of January and remain up 75% year-to-date, trading for A7¢ apiece on Tuesday in Sydney. Investors are speculating that Trump’s interest could revive ETM’s stalled Kvanefjeld rare earths project.

The U.S. has previously explored acquiring Greenland on three occasions, including during Trump’s first term. Although an autonomous territory of Denmark, Greenland is geographically closer to New York than Copenhagen, making it a strategic gateway between North America and Europe. Trump has described the island as vital to U.S. national security, while its vast critical mineral reserves add further strategic value.

“My view is that the U.S. interest in Greenland is primarily geostrategic and military-driven, with minerals being an added bonus,” ETM managing director Daniel Mamadou told MINING.COM at the Resources Rising Stars Summer Series in Brisbane. “That is my personal view, but the general consensus is that it’s all about the minerals, even though the U.S. has its own critical mineral resources.”

Last month, Greenland’s Prime Minister Mute Egede signalled a willingness to discuss defence and mining with Trump.

A stalled giant

ETM, formerly known as Greenland Minerals & Energy, acquired Kvanefjeld in 2007 and has invested approximately A$150 million ($95.2 million) in the project. The deposit is one of the world’s largest undeveloped rare earths resources, containing 1.01 billion tonnes at 1.1% rare earth oxide. Located in southern Greenland, the site offers year-round access via deep-water shipping ports.

ETM has completed environmental and social impact assessments, both approved for public consultation by the Greenland government in 2020.

“We’ve always had significant support, at least in Nuuk, from the Greenlandic Business Association and trade unions,” Mamadou said.

This Aussie junior is at the centre of a geopolitical storm

During a recent visit to Greenland, Mamadou met Jess Berthelsen, head of the country’s largest trade union, SIK, who reiterated his support for the project. However, opposition remains. Mamadou encountered a small protest in Narsaq, a town near the project site, but noted strong backing from local business owners.

“I think the silent majority in favor is being drowned out by a very vocal minority, as often happens,” he said.

Expropriation battle

In 2021, Greenland’s IA Party passed Act No. 20 — known as the Uranium Act — which bans the exploration and production of uranium above 100 parts per million. Kvanefjeld contains 592.8 million pounds of uranium grading 266 ppm, effectively halting ETM’s efforts to secure an exploitation license.

“I believe applying Act 20 retroactively to our project amounts to de facto expropriation,” Mamadou said.

ETM attempted negotiations with the Greenlandic government but was met with resistance, prompting the company to initiate a dispute resolution process. It filed a statement of claim in 2023 and launched legal proceedings in Greenlandic and Danish courts.

“We are seeking compensation,” Mamadou told the conference. “An external valuation puts this project at $7.5 billion, with an additional $4 billion in accumulated interest. However, our primary goal isn’t an award—we want to put this project back on the path to development.”

A potential turning point looms with Greenland’s upcoming elections. While uranium policies have shifted over time, some political parties have expressed support for the project.

“We work with the government in place, but it’s fair to say our current situation couldn’t be much worse,” Mamadou said. “We are looking forward to what the new administration may bring.”

‘Raw nerve’

Trump’s comments on Greenland — along with a recent visit by Donald Trump Jr. — have reignited local debate over the island’s political future.

“The election this time around is going to be focused really on the topic of independence and where Greenland stands. Does it stand with the U.S? Does it stand with Denmark? Does it stand on its own?” Mamadou said.

The managing director emphasized that economic independence is crucial, noting that a nation that stands on its own economically has more options than one reliant on outside powers.

In the meantime, ETM has appointed former Australian Foreign Minister Julie Bishop as a strategic advisor. The company also capitalized on its recent share price surge, raising A$9.35 million at A6.8c per share, boosting its cash reserves to A$20 million.

Sources indicate growing interest from major U.S. institutional investors. Currently, China’s Shenghe Resources remains ETM’s largest shareholder with a 9% stake.