Posted on 13 Jan 2025
Rare earth miner Tanbreez Mining Greenland is said to have been pushed by US and Danish officials not to sell its Greenland project to a Chinese-controlled entity.
The company, headquartered in Nuuk, Greenland, was granted an exploitation licence to mine the Tanbreez deposit – one of the largest known rare earths deposits globally. It is estimated to hold 4.7 billion tonnes in multiple resources.
The project of the same name is expected to have an output of 500,000 t/y, with first production earmarked for next year.
Amid diplomatic pressure, Tanbreez sold 92.5% of the project to Critical Metals Corp (CRML) for $211 million in exchange for CRML shares and $5m in cash, last June. Australia-listed European Lithium maintained the 7.5% share it already held in the project.
CRML was formed from the business combination of European Lithium and blank check company Sizzle Acquisition Corp. CRML is listed on the Nasdaq, Kallanish notes.
Most of the world’s rare earth supply chain is controlled by Chinese companies, with Western countries looking for alternative sources to reduce their dependence on Beijing.
“There was a lot of pressure not to sell to China,” Tony Sage, ceo of Critical Metals, told Reuters.
Chinese bidders reportedly offered more than Critical Metals.
With a focus on unlocking rare earth supply “for North America,” Critical Metals says it has been in discussion for potential supply deals with defence contractor Lockheed Martin and will also talk with RTX and Boeing. “We’re already in discussions with the US to sell [rare earths] and build the processing plant in the US,” Sage adds.
Critical Metals, US and Danish officials were contacted for comment.
Earlier this week, President-elect Donald Trump said he would implement “very high” tariffs on Denmark if it doesn’t relinquish control of the mineral-rich island. In a televised speech, he suggested “national security” concerns, citing “several” Russian and Chinese ships in its proximity. He added he wouldn’t rule out the use of military force to take control of the territory, which has caused outrage with Denmark and other NATO allies.
Danish foreign ministry said that Greenland could become independent if its residents want, but it wouldn’t become a US state.
Source:Kallanish
