Greenland has approved the mining and closure plans for Critical Metals Corporation’s Tanbreez rare earths project, giving the company regulatory clearance for the proposed mine layout, processing facilities, port infrastructure, and eventual site rehabilitation through September 2050.

The decision advances one of the larger undeveloped heavy rare earth projects outside China. Tanbreez is located at Killavaat Alannguat in southern Greenland, between Narsaq and Qaqortoq, with Critical Metals holding the project through its Tanbreez Mining Greenland subsidiary.

The latest approvals build on the exploitation licence issued in 2020 and cover extraction rights for 19 critical elements.

Operating Permits Still Required Before Construction

The approved plans set out how the mine and associated infrastructure are expected to be developed, operated, closed, and rehabilitated over the project life.

Critical Metals still requires activity-specific authorizations before mine construction can begin. These include permits covering environmental management, marine transport, worker health and safety, and the export and sale of mineral products. The permits fall under Sections 120 and 121 of Greenland’s Mineral Activities Act.

The company must also satisfy financial-security requirements tied to its exploitation licence. Its licence requires financial security and a company guarantee by the end of 2026, with mineral exploitation required to begin by June 2029.

Critical Metals is targeting first ore production during the fourth quarter of 2028 or the first quarter of 2029. Concentrate shipments are planned for the third quarter of 2029.

Tanbreez Targets Heavy Rare Earth Production

The approved mineral suite includes the heavy rare earth elements terbium, dysprosium, and yttrium, along with neodymium and praseodymium, which are used in permanent magnets. The project also contains zirconium, tantalum, hafnium, and niobium.

A preliminary economic assessment published in March 2025 estimated an after-tax net present value of $2.1 billion using a 15% discount rate. Initial capital spending was estimated at $290 million.

The study outlined initial production of about 85,000 tonnes per year, with modular additions that could increase throughput to about 425,000 tonnes annually.

An April 2026 resource estimate placed Tanbreez at nearly 45 million tonnes in the indicated and inferred categories at an average grade of 0.4% total rare earth oxides. The project currently has no declared mineral reserves.

Development Work and US Supply Agreements Progress

Critical Metals approved a $30 million development acceleration program in March 2026. By June, work had started on foundations for a pilot-plant headquarters and other supporting infrastructure. The company also launched a 10,000-metre drilling campaign and acquired a former cruise ship for worker accommodation.

In May, Critical Metals entered a binding 15-year offtake agreement with REalloys covering 15% of Tanbreez’s planned initial production. REalloys intends to use the material within a US mine-to-magnet supply chain serving defence and industrial markets.

The project has also received a $120 million letter of interest from the US Export-Import Bank for possible financing. That funding has not yet been committed.

Critical Metals is pursuing full ownership of Tanbreez through an all-stock acquisition of European Lithium, which owns the remaining 7.5% interest. Shareholders and optionholders are scheduled to vote on the transaction on October 22, 2026.