Critical Metals has announced that its Tanbreez Project in Southern Greenland is valued at approximately $3bn, according to the findings of a preliminary economic assessment (PEA).
The assessment forecasts an internal rate of return (IRR) of 180% for this rare earth deposit, which ranks among the largest globally.
The PEA evaluates just 1% of the Tanbreez Project’s 4.7 billion metric ton kakortokite unit, encompassing around 44.97 million metric tons of indicated and inferred rare earth resources. Initial production is targeted at 85,000 tonnes per annum, with potential scalability to 425,000 tonnes through modular expansion.
Located along the coast, the Tanbreez Project benefits from logistical advantages such as deep-water fjord access and nearby infrastructure, ensuring efficient transportation. The project has secured an exploitation license valid until 2050, aligning with an ESG-compliant development strategy that minimises environmental impact.
Holding a 42% equity interest in the project, Critical Metals plans to invest $10m in exploration activities by the end of 2025. This investment is intended to advance further drilling and culminate in a definitive feasibility study within the same timeframe.
Upon completing this investment, Critical Metals aims to increase its stake to 92.5% by issuing additional ordinary shares valued at $116m to Tanbreez’s current majority owner.
Identified as a significant source of heavy rare earth elements (HREE), the Tanbreez Project is positioned to supply Western markets, particularly in the US and the European Union (EU), with critical minerals essential for advanced commercial products and defense applications.
The project also offers low capital expenditure for initial mining operations and includes feldspar and alflarsenite as marketable by-products, generating only 3% waste material.
Critical Metals CEO and chairman Tony Sage said: “With significant macroeconomic tailwinds and global policy initiatives, including the US’ recent executive order to tap the Department of Defense to expand the production of rare earths, the Tanbreez Project is expected to play an essential role in supporting an integrated Western supply chain.
“As this PEA was only based on a fraction of the total resource potential at Tanbreez, Critical Metals Corp believes that more drilling can unlock enormous upside potential for Western stakeholders producing defense applications and other next-generation technologies, and can substantially increase the Tanbreez Project’s NPV.”
