It has caused a stir in Greenland and Denmark that the latter has made a good profit from mining on the world's largest island. But it is not up to 400 billion. DKK, as it appears in some places in the public debate. This is stated by three professors. Despite the great uncertainties about the number, it is a relevant contribution to the narrative of the historical situation when DR's new documentary about the extraction of the mineral cryolite is shown.
That is the opinion of Senior Advisor Carl-Johan Dalgaard, professor of economics at the University of Copenhagen and chairman of the Economic Council.
- It is relevant information to have in the conversation, he says.
The documentary was released on Sunday in the middle of a highly tense major political situation, where Greenlandic independence desires are burning, and the interest of the United States is great.
Economics professor Torben Andersen at Aarhus University warns of "serious problems" in the documentary, which he himself participates in.
- It is a deeply problematic way of calculating, Torben Andersen tells BT.
In the discussion of the relationship between Denmark and Greenland, it is worth noting that the gains have not only gone one way in the form of financial support from Copenhagen to Nuuk, the professors believe.
Professor emeritus Kjeld Møller Pedersen sat and shouted at the television, he writes in a column in Jyllands-Posten.
- In a situation with a debate about Greenlandic independence and Trump's interest in the country, accurate information is crucial. Unfortunately, we did not get that in the documentary. If you did not know better, you would think that Russian trolls had been at play, he writes.
However, there are significant shortcomings in the documentary's calculations in relation to creating a complete impression of Denmark's gains. Denmark has had both expenses and gains, which is important to emphasize according to Torben Andersen.
- That does not change the fact that it has been good business. But the turnover figure does not tell us what the resource has been worth. It is clear that the true figure is less than the turnover, because there have been a lot of costs, he tells BT.
The team behind the documentary seeks to make it plausible what profit Danish society has received from the mining of the mineral cryolite. But it is only possible to make an estimate of how much turnover the Danish mining company has received over the entire period from 1854 to 1987. The estimate is converted into today's kroner at 400 billion. DKK - a figure that should be taken with reservations, the documentary says. And Denmark was only a co-owner for part of the period.
The documentary cannot provide figures on how much Denmark has actually earned from the mining because it has not been possible to get an overview of the operating costs. Carl-Johan Dalgaard therefore lacks greater insight into the real value creation, because one cannot see the costs of the mining project.
- I would add the marginal note that what we would really like to see is the added value, he says.
It is from the added value that the economic social benefit for Denmark arises. An example in the documentary on Danish benefits is that the mining company's earnings go to investments in cookie factories on Funen, which is a derived financial benefit in Denmark. But if one is to estimate how much mining may have contributed to the Danish economy, the proceeds are not sufficient.
- There is significant work for economic historians to look more closely at this, because it is an interesting topic, says Carl-Johan Dalgaard.
Berlingske has spoken to several of the participants - including economics professor Torben Andersen - who criticize the documentary.
In a written response to the newspaper, DR's documentary director, Mikala Krogh, writes that the documentary shows that the calculations - i.e. the 400 billion kroner - "are not a clear-cut result" - just as it also appears that there is uncertainty and disagreement about the calculations among economists and researchers.
Cryolite is a mineral that was previously used as a flux in aluminum production to lower the melting point of aluminum oxide and improve the electrolysis process. It was originally mined in Greenland, but has now been replaced by synthetic alternatives.
jel /ritzau/
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