The Trump administration is presenting its agreement with Denmark and Greenland as a measure to strengthen U.S. security in the Arctic, but the accord could also have significant economic consequences. Announced by President Donald Trump on Truth Social, the deal gives the United States power to bar particular parties from accessing Greenland’s critical-minerals and mining sectors, according to POLITICO, citing the State Department. The provisions appear intended to prevent China or Russia from establishing commercial operations or a military presence in Greenland. Greenland, the world’s largest island, has a population of 56,000 and contains substantial rare earth and oil resources. Its Kvanefjeld deposit is among the world’s largest rare earth resources, while U.S. companies including Greenland Mines Ltd. and Critical Metals Corp. are pursuing projects involving neodymium, praseodymium and heavy rare earths. Yet the territory’s remote location, harsh climate, ice sheet and limited infrastructure make extraction expensive and difficult. Greenland had just two active mines at any scale as of mid-2026. The agreement is expected to be formally signed during the UN General Assembly next week and will require parliamentary procedures in Denmark and Greenland.