According to a report on Mining.com, Critical Metals Corp. has secured a $120 million loan from the Export-Import Bank of the United States (EXIM) to support the development of the Tanbreez rare earth project in Greenland.
The Tanbreez project boasts 4 billion mt of mineralized nepheline syenite, most of which remains unexplored, and is considered one of the world's largest rare earth deposits.
A letter seen by Reuters last week indicated that the New York-based company has met the initial conditions for applying for the $120 million loan, with a repayment period of 15 years.
In its letter of intent, EXIM noted that the project may require "adequate equity ownership by a well-funded strategic investor" to secure the loan.
Reuters reported that the loan EXIM intends to provide accounts for half of the $290 million construction investment required for the project, enabling it to commence production in 2026.
Once operational, the Tanbreez rare earth mine is expected to initially produce 85,000 mt of rare earth concentrate annually, with the potential to expand to 425,000 mt after expansion. The mining license is valid until 2050.
The production forecast is based on an ore resource of 45 million mt, accounting for only 1% of the total surrounding rock. According to the company's estimates, the Tanbreez project contains over 27% heavy rare earth elements (dysprosium, terbium, and yttrium), ranking among the highest in the world.
Earlier this year, Critical Metals released the results of an economic evaluation of the Tanbreez project, indicating a net present value of $3 billion (with pre-tax net present values of $2.8 billion and $3.6 billion at discount rates of 15% and 12.5%, respectively) and an internal rate of return of 180%.
As part of its efforts to mitigate asset risks prior to production, the company is currently finalizing the definitive feasibility study for Tanbreez, which includes the project timetable. This study is expected to be completed by the end of 2025.
Critical Metals also stated that it will invest an additional $10 million in exploration this year, which will entitle the company to acquire an additional 50.5% equity stake in the project, bringing its total equity to 92.5%.
Rare earth elements, comprising 17 elements, are essential for various applications ranging from electric vehicles to defense systems. Currently, the US has only one operational rare earth mine at Mountain Pass, and its concentrate needs to be shipped abroad for processing. The reliance on rare earth imports has compelled the US to invest in various rare earth projects domestically and overseas.
Once EXIM's loan is approved, Tanbreez will become the first overseas mining project funded by the US government since Trump's return to power.
This underscores the US's covetousness of Greenland's abundant mineral resources. US government officials have made frequent visits to Greenland. Earlier this year, US Vice President Vance paid a brief visit to Greenland. According to Reuters, US officials had lobbied the then owner of the project not to transfer it to a Chinese enterprise; instead, the project was ultimately transferred to Critical Metals.
Despite growing interest from various parties, mining development in Greenland has been sluggish due to low investor interest, delayed approvals, and environmental concerns. Currently, Greenland only has two small mines in operation.
For Critical Metals, the company still needs to build a processing plant, and its representatives have stated that their goal is to process domestically in the US. The company had previously applied to the US Department of Defense for funding to build a processing plant, but the application was later shelved.
Regarding the additional funding requirements for the Ex-Im Bank loan, Critical Metals told Reuters that it was considering offtake agreements, royalty streams, and funding from other US government agencies.
