On June 10, Critical Metals Corp. (NASDAQ: CRML), a mining development company, announced the signing of a legally binding agreement to acquire a controlling stake in the Tanbreez Greenland Rare Earth Mine (the Tanbreez project) from Rimbal, a company controlled by geologist Gregory Barnes. The transaction is valued at up to $2.11 billion.
Following the announcement, shares of Critical Metals rose 4.6% during intraday trading.
Critical Metals focuses on critical metals and minerals, as well as the production of strategic products necessary for electrification and next-generation technologies for European and other Western partner countries. For example, the company owns the Wolfsberg Lithium Project, the first fully licensed lithium mine in Europe. Located in Austria, it is expected to be completed by 2026 and will supply BMW starting in 2027. Additionally, Critical Metals has signed an agreement with Obeikan Investment Group to build a lithium hydroxide plant in Saudi Arabia.
Rare earths refer to the group of lanthanide and actinide elements on the periodic table, playing important roles in modern technology and industry. They are widely used in electronic devices, magnetic materials, chemical catalysts, optical glass, medical equipment, and also play a role in environmental technology and new energy development, such as in the manufacturing of electric vehicles or wind turbines.
Currently, China dominates the rare earth market, producing over 80% of the global supply and meeting approximately 95% of Europe’s demand. However, Europe is not lacking in rare earth resources, especially in resource-rich Nordic countries. Nonetheless, due to environmental concerns and relatively high extraction costs, there has been insufficient development and investment in rare earth resources in the region. In the current geopolitical climate, Western countries aim to supply their own rare earth minerals to reduce dependence on China.
Barnes stated that Tanbreez holds more than half of the world’s rare earth reserves and has been described by the U.S. Geological Survey as the largest undeveloped rare earth deposit in the world. In 2020, the project received a development license from the Greenland government, with an estimated resource of 47 billion tons of multi-element material containing 28.2 million tons of total rare earth oxides (TREO), and expected heavy rare earth elements (HREE) content exceeding 27%.
Once operational, the mine is expected to supply rare earth elements to Europe and North America. Moreover, the asset’s advantageous location near airport and coastal transportation facilities, with a deep-water fjord leading directly to the North Atlantic, adds further value. The outcropping ore body, Kakortokite, spans an area of 8×5 kilometers and extends to a depth of approximately 400 meters.
