Critical Metals Corp to Purchase Controlling Stake in Greenland Rare Earth Project

by | 11. Jun 2024 - 09:46 | Economy

The company also owns the Wolfsberg lithium project in Austria.

Critical Metals Corp has signed a binding agreement to acquire a controlling stake in the Tanbreez rare earth project in Greenland. The deal, valued at $211 million, will net the company 92.5 percent of the equity in the project, according to a press release. The project is in the south of Greenland, close to airports and harbors, making the transportation of raw materials to processing facilities in Europe or North America less complicated, the company said.

The previous owner, Tanbreez Mining, acquired a mining permit in 2020 and announced last year that production would start sometime in 2024 (we reported). Tanbreez Mining estimated the deposit to contain 19 million tons of rare earths, with 30 percent coveted heavy rare earths, such as dysprosium or terbium. The production of this subgroup used in permanent magnets, for example, is currently primarily dominated by China.

In addition, the company stated that the project would contain minimal harmful byproducts associated with some rare earth deposits, such as the radioactive elements uranium or thorium. Fellow mining company Energy Transition Minerals has so far failed to secure a mining license from the government for the Kvanefjeld project, also in Greenland, because of the concentration of uranium within the deposit (we reported).

Project Important for Western States, but Estimates Could Be Revised

With the estimated resources, the percentage of heavy rare earths, and the low concentration of radioactive byproducts, the project has gained attention among Western states seeking to diversify supply chains. However, Critical Metals emphasized that the estimates could change with additional tests and exploration efforts in the future.

Critical Metals was formed in February through the merger of Sizzle Acquisition Corp. and European Lithium. It was listed on the NASDAQ afterward. In addition to Tanbreez, the company also owns the Wolfsberg lithium project in the south of Austria, which, according to the company, is the only fully permitted mine in Europe to produce battery-grade lithium. Production is expected to start in 2025, with the first client being German carmaker BMW.

Photo: iStock/KimKimsenphot

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