Greenland's mining minister has warned that Donald Trump's proposal to buy the Arctic territory could have a "devastating" impact on its mineral marketing to international investors.

Naaja Nathanielsen told the Financial Times that the US president-elect's comments, particularly his refusal to rule out the use of force to capture the island, could undermine the island's reputation as a stable, The image of a resource-rich democracy.

“When he talked about not ruling out military uses for Greenland, I was very worried about how investors would view Greenland as perhaps a democracy that was about to become unstable or overrun,” Nathaniel Nelson said. “That’s a big concern for us. "It would be devastating for the mining industry because investors don't like instability."

Some mining companies have asked the island's government for assurances that their licenses would remain valid "if Greenland is occupied by the United States," a person familiar with the matter said.

"Companies are looking for reasons not to invest. This could fall into the category of political instability."

However, Nathaniel Nelson said she didn't think that was the right way to interpret the incoming U.S. president's remarks.

"If you put aside the rhetoric, what I'm hearing Trump say is that he believes Greenland's natural resources should be exploited. We completely agree with him," she said.

Nathaniel Nelson, whose ministerial portfolio includes business, trade, justice and gender equality, said mining companies operating in Greenland had a similar view but were more confused than actually worried.

"Everyone was waiting with bated breath: What is the message in there? . . . Where does it all fall?" Nathanielson said.

Greenland has positioned itself as an alternative to Western mining for many rare earths and minerals, an area in which China dominates, attracting the attention of U.S. officials keen to keep Beijing and Moscow out of the country.

Nathaniel Nelson said Western capitals were increasingly recognizing the need to diversify supply chains and ensure they were not dependent on China or Russia for defense production minerals.

But that has not translated into the funding and investment needed by mining companies to launch projects in a challenging region like Greenland, Nathaniel Nelson said, describing it as a geopolitical mistake.

"I think everyone is sleeping. And needs to wake up," she said.

The mining industry is also at the heart of Greenland's growing demand for independence. Like tourism, the industry is seen as the best way to boost the island's economy so that it no longer needs 4 billion Danish kroner ($550 million) in annual subsidies from Denmark, which controls the territory.

Despite anger at Trump's tone, many Greenlanders see a positive side to the incoming president's interest in their home country, as it brings attention to the territory's independence from Denmark. But Greenland's economy still has a lot of work to do, Nathanielson said.

Although many companies hold licenses to exploit vast resources in the Arctic, no major mines are operating, and Greenlandic officials and mining bosses admit the lack of progress is disappointing.

Greenland's remoteness, lack of infrastructure and short mining season prevent many projects from being realized.

Nathanielson said Trump's initial interest in Greenland in 2019 sparked a flurry of collaboration on mining in the Arctic with the U.S. State Department, and she hoped his latest comments showed that work would expand.

"To get these minerals from Greenland, it's not enough to just say 'we want this'. You also need to help early-stage companies, and it's very, very important that they get access to significant funding," she said.

London-listed miner Anglo American, Greenland's largest company, has very early-stage exploration licenses that are due to expire this year but can be renewed.

Other companies have discovered promising supplies of minerals such as copper, oil and gallium but have been unable to secure funding despite decades of trying in some cases.

Nuuk's government halted the controversial Kvarnefeld project in southern Greenland, in which a Chinese company was a minority shareholder, because it contained not only rare earths but also uranium.

In addition to regulatory challenges, there are logistical hurdles. Greenland has no roads connecting its cities, let alone its mineral deposits. “You also have to build supporting infrastructure and the actual mine,” said Svend Hardenberg of Energy Transition Minerals, the developer of the Kvanefjeld project. “Additionally, there is a shortage of skilled workers as the industry is immature.”

“The United States and Europe need access to rare earth elements because China has a de facto monopoly,” Hardenberg said.

Roderick McIllree, executive director of British-listed mining company 80 Mile, which has three projects in Greenland, said he hoped Trump would lift the situation.

"People thought Greenland was too hard, too difficult," he said. "Then Donald Trump comes along and says Greenland is probably the most valuable real estate in the world, and suddenly everyone wants to invest."

"This is a paradigm shift in sentiment. Greenland is now on the agenda. This is a land of incredible opportunity."