Greenland government approves Tanbreez mine plan

The Greenland government recently approved the mining and closure plans for Critical Metals' Tanbreez rare earths project, allowing the company to move forward with construction. Located in southern Greenland, Tanbreez is considered one of the larger undeveloped heavy rare earth projects outside China, with an after-tax net present value of $2.1 billion at a 15% discount rate.

The approval comes as countries like the U.S. and its allies seek to develop critical mineral supply chains away from China. Shares in Critical Metals rose 4.4% on Monday morning, valuing the company at $1.08 billion. The mining and closure plans outline how the mine, processing plants, port, and supporting infrastructure will be built, operated, and eventually closed and rehabilitated through 2050.

While construction cannot begin until additional approvals are obtained, Critical Metals expects first ore production by the end of 2028 or early 2029, with concentrate exports in the third quarter of 2029. The project has already started supporting infrastructure work and secured a 15-year offtake agreement with REalloys for 15% of Tanbreez's initial production.