MINEX Forum

Tag: Greenland

  • U.K. Nears Critical Minerals Partnership with Greenland Amid Global Supply Chain Rivalry

    U.K. Nears Critical Minerals Partnership with Greenland Amid Global Supply Chain Rivalry

    Britain is preparing to sign a landmark critical minerals partnership with Greenland, a move aimed at securing access to the Arctic island’s vast reserves of rare earths and reducing reliance on Chinese supply chains. Sources familiar with the talks told POLITICO that the agreement could be announced during Prime Minister Keir Starmer’s visit to Copenhagen this week for the European Political Community summit.

    Greenland, a self-ruling Danish territory, hosts 40 of the 50 minerals the United States deems essential to national security, including uranium and graphite. These resources are increasingly vital for global supply chains powering electric vehicles, renewable energy, and advanced technologies.

    The U.K. Department for Business and Trade stressed that securing critical minerals is central to Britain’s industrial strategy, growth, and clean energy transition. Trade Minister Chris Bryant hinted earlier this week that new trade talks were imminent, without naming the country involved.

    Analysts caution that while Greenland’s mineral wealth presents an opportunity, the financial and environmental costs of extraction remain high. Environmental standards and indigenous community participation will be key to securing local support. Greenland has previously revoked mining licenses over radioactive waste concerns, underscoring the political and ecological sensitivities.

    The deal also carries political implications. Greenland’s revenues from mining could reduce its reliance on Denmark’s annual block grant, potentially strengthening its independence. However, experts warn that London must coordinate with Denmark, Nordic states, and the EU to avoid tensions, particularly as Brussels already signed a minerals partnership with Greenland in 2023.

    Even if secured, extraction is only part of the challenge. Most refining of rare earths and critical minerals still occurs in China. Without parallel investment in processing capacity elsewhere, Europe and the U.K. risk remaining tied to Chinese supply chains despite new mining agreements.

  • Critical Metals to Boost Tanbreez Stake in Greenland Rare Earth Project to 92.5%

    Critical Metals to Boost Tanbreez Stake in Greenland Rare Earth Project to 92.5%

    Critical Metals Corp (Nasdaq: CRML) will increase its ownership in the Tanbreez rare earth project in southern Greenland from 42% to 92.5%, securing control over one of the world’s largest rare earth deposits, major shareholder European Lithium (ASX: EUR) confirmed on Thursday.

    The revised agreement involves Critical Metals issuing 14.5 million shares to Rimbal Pty Ltd, a company controlled by project founder Gregory Barnes, at $8 per share – a 23% premium to the company’s last closing price of $6.49. The transaction is valued at $116 million and is subject to approval by the Greenland government, with completion expected in October or November 2025.

    Barnes agreed to waive a previous requirement for Critical Metals to commit $10 million in investment before qualifying for the increased stake. European Lithium will retain its 7.5% interest in Tanbreez, along with a 60% shareholding in Critical Metals, worth about $408 million at current market prices.

    The Tanbreez project hosts one of the world’s largest untapped heavy rare earth element (HREE) deposits, with more than 27% HREE content and an estimated 4.7 billion tonnes of host rock. A preliminary economic assessment completed in March valued the project at a pre-tax NPV of $3.04 billion, with an internal rate of return of 180%.

    Describing Tanbreez as “a game-changer” for Western rare earth supply chains, founder Gregory Barnes underscored the project’s strategic significance at a time when China dominates global supply, accounting for about 60% of production and 85% of processing.

    The move also coincides with discussions between the UK, EU allies, and Greenland over a potential critical minerals partnership, with Greenland’s foreign minister signalling the island’s mineral wealth as central to future cooperation.

  • Greenland Approves 30-Year Molybdenum Mining Project to Supply 25% of EU Demand

    Greenland Approves 30-Year Molybdenum Mining Project to Supply 25% of EU Demand

    Greenland has granted a 30-year permit to Toronto-listed Greenland Resources for the development of the Malmbjerg molybdenum mine, marking a major step forward for EU-backed efforts to secure critical raw materials. The project, located in eastern Greenland, is expected to produce an average of 32.8 million pounds of concentrated molybdenum annually—enough to meet around a quarter of Europe’s demand for the metal.

    Molybdenum is used in aerospace, clean energy, and defense due to its strength and resistance to heat and corrosion. With China controlling around 40% of global molybdenum production and recently tightening export controls in response to U.S. tariffs, the project carries geopolitical significance.

    The Malmbjerg mine is backed by the European Raw Materials Alliance and has already secured supply agreements with major European firms, including Finland’s Outokumpu and Italy’s Cogne Acciai Speciali.

    Greenland’s mining sector is seeing increased momentum. Just last month, the country issued another exploitation licence to a Danish-French consortium, and the EU included a graphite project in Greenland among 13 new strategic initiatives aimed at bolstering mineral supply.

    Though development in Greenland has historically been slowed by regulatory hurdles and limited financing, interest from both the U.S. and EU is accelerating. The U.S. Export-Import Bank recently confirmed that a Greenland-based rare earth mine met the initial criteria for a $120 million loan.

  • Greenland Grants 30-Year Mining Permit for Climate-Friendly Aluminium Alternative

    Greenland Grants 30-Year Mining Permit for Climate-Friendly Aluminium Alternative

    Greenland has issued a 30-year mining license to Greenland Anorthosite Mining (GAM), a Danish-French mining group, to extract anorthosite—an unusual white rock that could play a key role in climate-friendly aluminium production. The permit covers a project site in western Greenland and marks a significant step toward the island’s ambitions to become a major player in the global green minerals market.

    GAM, backed by the French investment firm Jean Boulle Group and state investment funds from both Denmark and Greenland, aims to begin mining operations within five years. The company plans to export crushed anorthosite to the fiberglass industry, where it could serve as a more sustainable replacement for kaolin. Longer-term, it may replace bauxite in aluminium production, reducing the carbon footprint of a metal critical to the aerospace, automotive, and defense industries.

    Anorthosite is geologically similar to material brought back from the Moon by NASA’s Apollo missions, and its unique composition—aluminium, micro silica, and calcium—offers promising industrial applications.

    Despite the global spotlight on Greenland’s natural resources, Mineral Resources Minister Naaja Nathanielsen stated that heightened U.S. interest in the Arctic island—especially following former President Donald Trump’s 2019 proposal to purchase it—has not yet resulted in direct American investment.

    “Right now, all the fuss has not resulted in increased appetite for investment directly in Greenland,” Nathanielsen told Reuters. While U.S. business delegations have visited the island, formal talks with the U.S. government remain on hold.

    In contrast, Nathanielsen noted smoother progress with European Union and Danish partners, citing years of intensified cooperation.

    Although Greenland is rich in minerals, oil, and gas, its mining sector remains underdeveloped due to investor caution, regulatory hurdles, and environmental concerns. At present, only two small mines are operational on the island.

  • Greenland Faces $11.5 Billion Lawsuit Over Rare Earth Mining Ban

    Greenland Faces $11.5 Billion Lawsuit Over Rare Earth Mining Ban

    A legal battle is unfolding between Greenland’s government and Australian mining company Energy Transition Minerals (ETM) over the halted Kvanefjeld rare earth mining project. The Greenlandic authorities banned uranium mining in 2021 due to environmental concerns, effectively blocking the proposed $7.5 billion open-pit mine near the town of Narsaq. ETM, which had already invested over $100 million in the site, is now suing for $11.5 billion, arguing that the ban constitutes expropriation.

    Greenland has a history of pollution from past mining operations, with toxins still affecting marine life decades later. The government, led by the Inuit Ataqatigiit party, insists that protecting the environment and public health must come first. However, ETM, backed by litigation finance firm Burford Capital, argues that Greenland’s shift in policy unfairly deprived investors of expected profits.

    The case, which hinges on an investor-state dispute settlement (ISDS) mechanism, highlights a growing global trend where corporations sue governments over environmental regulations. Experts warn that such claims could pressure smaller nations into reversing environmental policies.

    As arbitration proceedings progress, Greenland remains firm in its stance. “They try to bully us and make us feel small. That’s not going to happen,” says Greenland’s mining minister, Naaja Nathanielsen. Meanwhile, Narsaq residents remain divided—some fear the mine’s impact on water and ecosystems, while others see economic opportunity. The case’s outcome could set a precedent for how environmental policies withstand legal challenges from the mining industry.

  • Greenland Unveils New Mineral Resources Strategy Focused on Sustainability and Investment

    Greenland Unveils New Mineral Resources Strategy Focused on Sustainability and Investment

    Nuuk, Greenland – February 11, 2025 – The Government of Greenland has launched its Mineral Resources Strategy for 2025-2029, outlining a vision for a sustainable and prosperous future driven by responsible development of its mineral wealth. The strategy, which replaces the 2020-2024 plan, emphasizes sustainability, attracting investment, and capitalizing on critical mineral resources.

    Naaja H. Nathanielsen, Minister of Business, Trade, Mineral Resources, Justice, and Gender Equality, underscored the importance of the mining sector for global development and Greenland’s economic future. “The mineral resource industry is a necessary prerequisite for the continued development of the global community,” stated Nathanielsen in the strategy’s preface. “The global need for minerals can create jobs and growth locally and nationally, contributing to a more sustainable and robust economic development for us all.”

    The strategy identifies four key focus areas:

    Sustainability and Society: This area prioritizes public engagement, environmental responsibility, and social equity within the mining sector. Initiatives include public surveys on attitudes toward the industry, campaigns promoting education and job opportunities, and the development of gender equality guidelines for companies.

    Attractive Investment Frameworks: Greenland aims to reduce investor risk and stimulate economic growth through targeted tax agreements, streamlined administrative processes via digitalization, and strengthened infrastructure. The strategy also includes ongoing assessments of Greenland’s tax and royalty model to ensure competitiveness.

    Critical Minerals: Recognizing the growing global demand for critical minerals, Greenland will focus on strengthening international partnerships, particularly with the EU and the US, to secure markets for its resources.

    Geological Mapping and Geodata: To improve the attractiveness for exploration and investment, the strategy calls for continued geological mapping, scientific projects to generate new knowledge, and expanded availability of geoscientific data. Focus will also be on preventing natural disasters like landslides.

    The strategy emphasizes a holistic approach to sustainability, encompassing social, environmental, and economic dimensions. It recognizes the importance of balancing resource development with the needs of traditional industries like fishing and hunting, as well as protecting Greenland’s unique natural and cultural heritage.

    The plan outlines numerous concrete initiatives, including marketing efforts at international conventions, increased cooperation with export-import banks to support project financing, and the establishment of a certification system for small-scale licensees. The government also plans to facilitate meetings between investment funds and the mineral resources industry, as well as host an annual investment conference for global investors.

  • Amaroq Minerals Achieves First Gold Pour at Nalunaq Mine in Greenland

    Amaroq Minerals Achieves First Gold Pour at Nalunaq Mine in Greenland

    Amaroq Minerals has celebrated a major milestone with the first gold pour at its flagship Nalunaq gold mine in Greenland. The pour occurred on Wednesday, following the Greenlandic government’s approval of Phase 1 commissioning for the Nalunaq processing plant. Over a ten-hour period, the initial pour yielded 1.2 kg of gold.

    The company stated it will optimize the processing plant during this initial phase and aims to achieve weekly gold pours. Looking ahead, Phase 2 commissioning, which includes a flotation circuit, is expected to conclude by the second quarter of 2025.

    Ramp-up to a steady operational capacity of 260-300 tonnes per day with gold grades of 12-16 g/t is anticipated in the fourth quarter of 2024. Additionally, Amaroq plans to release an updated mineral resource estimate for Nalunaq in early 2025.

    The Nalunaq mine previously produced over 350,000 oz. of gold between 2004 and 2013. Since acquiring the project in 2015, Amaroq has expanded the resource base through exploration and introduced a new geological model centered on the Dolerite Dyke.

    Following the announcement, shares of Amaroq Minerals rose 2% to reflect a market capitalization of C$559 million ($399 million).

  • Critical Metals Corp Secures Extension for Greenland’s Largest Rare Earth Deposit

    Critical Metals Corp Secures Extension for Greenland’s Largest Rare Earth Deposit

    Critical Metals Corp.  announced on Tuesday that it has obtained an extension for the exploitation license of its Tanbreez project in Greenland, which holds the world’s largest rare earth deposit. The company is now required to submit exploitation and closure plans by the end of 2025, provide financial security and a company guarantee by June 30th, 2026, and start mining operations by the end of 2028.

    Chairman and CEO Tony Sage expressed that the extension is a “significant milestone,” reflecting strong local support and the potential for job creation in the region. The drilling program, which began in September, has concluded, with extracted rare earth material securely stored. A portion has been sent for analysis to ALS laboratory in Ireland, and the company expects to receive results in the coming months.

    Located in Southern Greenland, the Tanbreez project contains over 27% heavy rare earth elements (HREE), which are more valuable than lighter rare earth elements. Once operational, the mine will supply rare earth elements to Europeand North America, with year-round direct shipping access through deep-water fjords connecting to the North Atlantic. The orebody, Kakortokite, covers an 8 km by 5 km area and is 400 meters thick.

    In addition to Tanbreez, Critical Metals owns Europe’s first fully permitted lithium mine, the Wolfsberg lithium project in Austria, and debuted on the Nasdaq in March. Construction at Wolfsberg is expected to be completed by 2026, with supply commitments to BMW beginning in 2027. The company has also secured a partnership with Obeikan Investment Group to establish a lithium hydroxide plant in Saudi Arabia. Following this announcement, shares in Critical Metals rose over 2.8%, with the company’s market capitalization reaching $536.6 million.

  • Critical Metals Corp. Acquires Controlling Interest in World’s Largest Rare Earth Deposit

    Critical Metals Corp. Acquires Controlling Interest in World’s Largest Rare Earth Deposit

    Critical Metals Corp. (Nasdaq: CRML) has announced an agreement to acquire a controlling interest in the Tanbreez project in Greenland, home to the largest rare earth deposit in the world. The Tanbreez deposit hosts 28.2 million tonnes of total rare earth oxides (TREO) within 4.7 billion tonnes of material, according to internal company estimates. Notably, the asset contains over 27% heavy rare earth elements (HREE), and Critical Metals is working to convert these internal estimates to U.S. SEC standards.

    Once operational, the mine is expected to supply rare earth elements to Europe and North America. The Tanbreez areaboasts year-round direct shipping access through deep-water fjords leading to the North Atlantic Ocean, providing key transportation outlets. The outcropping orebody, known as Kakortokite, spans 8 km by 5 km and is approximately 400 metres thick.

    Critical Metals acquired the project from Rimbal Pty. Ltd., controlled by geologist Gregory Barnes. CEO Tony Sagedescribed Tanbreez as a “game-changing rare earth mine for the West,” positioning Critical Metals Corp. as a leading supplier of critical minerals with a diversified portfolio spanning multiple geographies.

    In addition to the Tanbreez acquisition, Critical Metals owns Europe’s first fully permitted lithium mine, the Wolfsberg lithium project in Austria, which debuted on the Nasdaq in March. Upon completing construction at Wolfsberg by 2026, the company has committed to supplying BMW by 2027. Critical Metals has also secured a deal with Obeikan Investment Group to build a lithium hydroxide plant in Saudi Arabia.

    Shares of Critical Metals rose 4.6% by 12:00 p.m. EDT, with the company’s market capitalization reaching $877 million.

  • EU Commission President Visits Greenland Amid Rising Strategic Importance

    EU Commission President Visits Greenland Amid Rising Strategic Importance

    Ursula von der Leyen, President of the European Commission, is embarking on a significant journey to Greenland, reflecting the escalating significance of the region due to factors like melting Arctic ice, the demand for green-technology raw materials, and growing competition from China. Despite not being a part of the EU, Greenland holds substantial interest for Brussels, particularly for its abundance of raw materials, believed to encompass 25 out of the 34 materials deemed essential by the EU.

    Von der Leyen’s visit, alongside Danish Prime Minister Mette Frederiksen, entails stops in the Faroe Islands before heading to Greenland to inaugurate a new EU Commission office in Nuuk. This diplomatic excursion aligns with Von der Leyen’s reelection aspirations and follows calls for accelerated green efforts within the EU after recent elections, as highlighted by the EU’s climate chief, Wopke Hoekstra.

    Tomas Baert, Von der Leyen’s special adviser on trade and international partnerships, emphasized Greenland’s significance in providing critical raw materials essential for the EU’s green transition. He underscored the need for partnerships to harness Greenland’s vast potential, acknowledging the geopolitical implications of China’s extraction-focused approach in contrast to the EU’s collaborative model.

    The establishment of the EU Commission office in Greenland underscores the EU’s commitment to bilateral cooperation, as articulated by Naaja H Nathanielsen, Greenland’s minister for business, trade, and raw materials. Nathanielsen highlighted the mutual benefits of cooperation, emphasizing Greenland’s need for external support to develop its mineral sector, crucial for economic diversification alongside traditional sectors like fishing.

    Amidst this geopolitical backdrop, the visit also coincides with critical developments in Denmark’s relationship with Greenland, amidst a growing independence movement and concerns over historical violations, including the forced sterilization of women and girls. While addressing these sensitive issues remains unresolved, the trip underscores the complex dynamics shaping the region’s future.