Greenland, USA & Denmark: A Potential Deal Structure

A proposal to balance sovereignty, security, and shared economic growth – purely conceptual and not an official plan

The United States has shown interest in buying Greenland, but neither Greenland nor Denmark is willing to sell. Here’s a proposed deal structure designed to benefit all parties and spark discussion on potential terms.

Disclaimer: This proposal is presented solely as a conceptual framework to inspire public dialogue and discussion on how a potential deal structure could be shaped. Neither Magnus Kjøller, nor the Kjøller organisation represent any government or official entity in any capacity. This term sheet is purely an independent idea and does not reflect the policies, intentions, or views of any government or organisation. For comments or questions, please feel free to connect via this contact form or join the conversation on LinkedIn, Facebook, or X.

The Proposed Term Sheet

The Main Points of the Agreement

This agreement builds on the 1951 Defence Agreement, supporting Greenland’s transition to full sovereignty while maintaining its strategic alliance with the United States. It focuses on four key areas: independence, military presence, mining rights, and mutual obligations.

Greenland gains full control over its governance, judiciary, foreign policy, and defence, with economic and technical support from Denmark and the U.S. Denmark transfers its financial commitments to the U.S., ensuring Greenland’s stability during the transition.

The U.S. assumes responsibility for Greenland’s defence, maintaining existing bases and establishing additional operational zones as needed. Greenland agrees not to allow foreign military access without prior U.S. approval.

To support economic growth, the U.S. receives exclusive onshore mining rights for rare earth minerals under strict environmental regulations. Greenland may operate its own mines but cannot grant rights to other foreign entities without U.S. approval. Mining revenue is shared between Greenland, Denmark, and operators.

This agreement reinforces Greenland’s strategic and economic future while benefiting all parties. It takes effect immediately upon signing.


1. Independence

  1. As part of this agreement, Greenland shall gain full independence from the Kingdom of Denmark, formally transitioning from its status as an autonomous territory to a fully sovereign nation.

  2. All administrative, legal, and governance responsibilities currently managed by Denmark will be transferred to Greenland, including control over its judiciary, foreign and policy, subject to agreements outlined in this term sheet.

  3. Denmark will cease its annual block grant payments to Greenland, with the United States assuming this responsibility as detailed in the “Military Presence” section. Greenland will be empowered to establish its own fiscal policies, manage its resources, and engage in international trade and investment agreements independently.

  4. Greenland shall have the option to purchase public services from Denmark, such as healthcare and higher education, at a fair market price until it is ready as a nation to take on these responsibilities itself. Denmark shall not profit from this agreement, ensuring that the pricing reflects only the actual costs of providing the services.

  5. Both Denmark and the United States shall provide technical and financial support during a transitional period to assist Greenland in building administrative and governance capacities required for a sovereign state. This includes training programs for government officials, infrastructure development, and legal framework establishment.

  6. The independence process will commence immediately upon signing of this agreement, with a formal declaration of sovereignty to be completed within a specified timeframe of 10 years. This period will allow for the orderly transfer of responsibilities and establishment of Greenland’s sovereign institutions.

  7. Upon the implementation of this agreement, Denmark will discontinue all other subsidies to Greenland.


2. Security Agreement

  1. The United States is obligated to provide comprehensive protection to Greenland to ensure the maintenance of its sovereignty and territorial integrity. This commitment includes safeguarding Greenland against external threats, securing its borders, and supporting its ability to exercise full control over its land and resources.

  2. As part of this obligation, the U.S. will deploy necessary military, naval, and air assets to deter potential aggression and respond to security challenges.

  3. Additionally, the U.S. will collaborate with Greenlandic authorities to enhance local defence capabilities and provide strategic support to uphold Greenland’s autonomy and international standing.

  4. This security agreement partnership will remain active for a minimum of 99 years or until cancelled by Greenland.


3. Military Presence

  1. The United States military may continue operations in existing areas, including the Pituffik Space Base (formerly Thule Air Base), which serves as the U.S.’s northernmost military installation in Greenland.

  2. In addition to these existing areas, the U.S. is permitted to establish up to 10 new operational zones (to be determined), expanding its strategic and defence capabilities on the island while adhering to environmental and geopolitical agreements.

  3. Denmark retains the right to maintain a concurrent military presence in Greenland, including establishing or maintaining bases, operational zones, and defence installations, provided these efforts are coordinated with the United States.

  4. Greenland will not permit any foreign powers, other than Denmark or the United States, to establish military bases or maintain a military presence within its territory without prior approval from both Denmark and the United States. As an independent nation and continued NATO member, Greenland may participate in military cooperation, joint exercises, and intelligence-sharing agreements with NATO-aligned nations, but any permanent military presence remains strictly limited to Denmark and the United States, unless otherwise approved by the U.S.

  5. Nuclear weapons or related activities, including testing, storage, transit, research, development, or deployment of nuclear technologies, are strictly prohibited within Greenlandic territory. Any violation of this prohibition will result in immediate termination of the relevant agreements and the imposition of significant penalties. To ensure compliance, regular inspections by independent authorities will be conducted.

  6. As part of this agreement, the United States will assume Denmark’s responsibility for providing Greenland’s annual block grant. As of 2024, this grant amounts to approximately DKK 4.3 billion, or about $600 million USD. To further support Greenland’s development, the U.S. will increase this amount by 50%, resulting in an annual payment of approximately $900 million USD. This payment will be adjusted annually based on Greenland’s population size and inflation rates to ensure sustained support for the nations economic and social programs.

  7. This agreement is active for a term of 50 years. Even if the U.S. withdraws, it will still be obligated to pay the annual block grant during this period.


4. Mining Rights for Rare Earth Minerals

  1. The United States will be permitted to establish and operate onshore mines for the purpose of extracting rare earth minerals and other agreed-upon resources.

  2. These mining operations must adhere to strict environmental and safety regulations, ensuring minimal disruption to local ecosystems and communities.

  3. Additionally, mining activities will be confined to pre-approved zones, determined in collaboration with Greenlandic authorities, to safeguard human settlements and protect endangered species.

  4. These zones are exempt from taxes and fees unless explicitly stated otherwise.

  5. The United States will have exclusive rights to mining operations within the designated zones under this agreement.

  6. Greenland is prohibited from awarding mining rights to any other country or foreign entity without the explicit approval of the United States, with the exception of Greenland itself, which retains the right to develop and operate its own mining projects.

  7. The permit is granted under a 99-year lease agreement, after which it will be subject to renegotiation.

  8. The agreement operates on a revenue-sharing model based on the gross revenue generated from the extracted resources. This revenue-sharing framework aims to balance the economic benefits among all stakeholders while promoting sustainable development and investment in Greenland’s future. The revenue split is structured as follows:

    • 30% to the Greenlandic Development Fund (to be established).

    • 10% to the Danish National Wealth Fund (to be established).

    • 60% retained by the mining operator.

  9. Additionally, a minimum annual payment of $200 million USD must be maintained from the closing date of the agreement. If no mining operator is identified or mining operations are delayed for any reason, the United States government is obligated to pay this amount directly to the Greenlandic Development Fund and the Danish National Wealth Fund according to the agreed revenue split.

  10. Greenland and Denmark are encouraged to establish or expand their respective National Wealth Funds to manage their shares of the revenue, drawing inspiration from the successful Norwegian model. These funds would ensure the sustainable management of resource income, allowing for long-term investments that benefit future generations and promote economic stability.

  11. Only onshore exploration of minerals is permitted under this agreement, while both offshore and onshore exploration of oil are explicitly excluded due to environmental risks, including the hazards associated with transporting oil by sea and the dangers posed by Greenland’s harsh climate, which make such activities particularly perilous and unsustainable.

  12. Greenland may terminate the mining portion of this agreement with five years’ notice, provided it pays $50 billion USD to the United States and $10 billion USD to Denmark as a breakup fee.

  13. If no major environmental or accidental impacts occur during the lease term, the U.S. and Greenland may negotiate more favourable renewal terms, to be determined at a later date.