Critical Metals (NASDAQ:CRML) has received formal approval from the Greenland Government for the mining and closure plans for its Tanbreez Rare Earth Project.
The New York-based miner says its Greenlandic subsidiary has been approved for the exploitation of 19 critical elements at Killavaat Alannguat, located between Narsaq and Qaqortoq in southwest Greenland.
“Approval of the mining and closure plans is a defining milestone for Tanbreez and for Critical Metals,” Chairman and CEO Tony Sage says.
The approval builds on the exploitation licence already granted for Tanbreez in 2020 which runs until September 2050, the company says.
Greenland’s Minister for Foreign Affairs, Business, and Mineral Resources Múte B Egede signed the approval on behalf of the government on 29 September.
Tanbreez development advances
Critical Metals considers the approval a key milestone in reducing development risk at what it regards as one of the largest undeveloped heavy rare earth assets outside China.
The company entered the project more than a year ago and has since advanced several development initiatives, including a preliminary economic assessment (PEA) that estimated a project value of US$3 billion ($4.28 billion).
The PEA was based on a mineral resource estimate of about 45 million tonnes within a 4.7-billion-tonne host rock formation. Heavy rare earths account for 27% of the resource’s rare earth content.
Target minerals include terbium, dysprosium, and yttrium. Terbium and dysprosium are used in high-temperature permanent magnets.
Earlier this year, the company approved a US$30 million development program covering drilling, infrastructure, engineering design, and metallurgical work to move Tanbreez closer to production.
First production targeted for 2028
Following the latest approval, Critical Metals says its next step is to obtain operating permits related to environmental management, marine transport, health and safety, and the export and sale of minerals.
The company previously said it is targeting first ore production in Q4 2028 or Q1 2029, followed by concentrate exports in Q3 2029.
Critical Metals focuses on critical minerals and producing strategic products essential to electrification and next-generation technologies for Europe and its Western world partners.
Write to Jackson Chen at Mining.com.au
Main Image: Critical Metals
