The world’s largest rare earth deposit in Greenland has been sold to Critical Metals, a Special Purpose Acquisition Company (SPAC) of Australian European Lithium.
On June 10, Critical Metals announced they had signed a contract to acquire a controlling interest in the Greenland Tanbreez Project from Rimbal Pty, operated by geologist Gregory Barnes. The deal is worth approximately US$211 million.
The Tanbreez Project is expected to have a total rare earth oxide (TREO) of 28.2 million tons and a heavy rare earth element (HREE) of more than 27%. Once the project is fully operational, it is expected to supply rare earth elements to Europe and North America.
In particular, the Tanbreez is expected to secure major transportation accessibility, as it is directly connected to the North Atlantic through a deep-sea Fjord, allowing year-round direct transport. The area of ore outcrop, known as Kakortokite, is 40㎢ (15.4 square miles), and its thickness reaches approximately 400 meters (1,312 feet).
Critical Metals Chief Executive Officer Tony Sage characterized the Tanbreez Project as a transformative rare earth mine for the Western landscape. He emphasized that this project represents a significant advancement for Critical Metals, which boasts a diversified multi-asset portfolio in various regions and aims to position itself as a major mineral supplier.
Critical Metals’ acquisition of the Tanbreez Project is interpreted as a move to reduce its dependency on China, which holds over 90% of the world’s rare earth assets.
Greenland, where Tanbreez is located, has 19 million tons of rare earth, corresponding to about 44% of the world’s rare earth reserves. Of these oxides, 30% are reported to be heavy rare earths of great value for industrial use.
Critical Metals went public on NASDAQ in March of this year after Australian European Lithium and SPAC Sizzle Acquisition agreed to merge in 2022.
Critical Metals owns the Austrian Wolfsberg Lithium Project, Europe’s first fully licensed lithium mine. Construction of the Wolfsberg Project is expected to be completed by 2026, and Critical Metals has agreed to supply lithium to BMW by 2027.
In addition, Critical Metals has also signed a contract with the Obeikan Investment Group to build a lithium hydroxide plant in Saudi Arabia.
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