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| Tanbreez project |
Drilling Begins at Tanbreez to Expand Heavy Rare Earth Resource
Critical Metals rare earth investment in Greenland signals a significant step toward diversifying global supply chains. The company has launched a 2,000-meter drilling program at its Tanbreez project to expand its resource base ahead of a bankable feasibility study. This development comes as the world intensifies efforts to reduce reliance on Chinese rare earth supplies.
Tanbreez hosts nearly 45 million tonnes of indicated and inferred rare earths, only 1% of its 4.7-billion-tonne kakortokite host rock. Notably, 27% of the resource consists of heavy rare earth elements (HREEs), which are critical for defense, clean energy, and high-performance electronics. These materials are far rarer and more valuable than light rare earths.
As a result, Critical Metals’ share price surged over 22%, hitting a four-month high on NASDAQ. Investors responded positively to the exploration update and the potential scale of this rare earth resource in southern Greenland.
$3 Billion NPV Project Targets 2026 Production Start
Earlier this year, Critical Metals released a preliminary economic assessment (PEA) showing a net present value (NPV) of $2.8–3.6 billion and an internal rate of return (IRR) of 180%. This positions the Tanbreez project as one of the most promising emerging rare earth ventures globally.
The company plans to commence annual production of 85,000 tonnes of rare earth oxides by 2026, with scalable expansion to 425,000 tonnes. Meanwhile, the 2025 drilling campaign targets eudialyte mineralization in the Fjord deposit, representing about half of the current resource.
In contrast to other rare earth projects, Tanbreez’s scale and heavy rare earth content make it strategically attractive for clean technology and national security applications. The U.S. Export-Import Bank has already signaled support with a $120 million loan commitment to finance project development.
Feasibility Study, Resource Growth, and Geopolitical Relevance
Critical Metals expects the drilling campaign to enhance its mineral resource estimate (MRE) and support regulatory approvals from Greenlandic authorities. With new data, the company aims to finalize its bankable feasibility study (BFS) and attract additional financial partners.
In the short term, drill holes will test extensions of the Fjord deposit over 700 meters eastward and 650 meters along strike, targeting depths between 80 to 250 meters. The exploration team has already reached 60 meters in the first vertical hole through the kakortokite host rock.
Therefore, the Critical Metals rare earth investment represents more than a mining update—it reinforces strategic independence for Western economies. Heavy rare earths are vital to secure domestic supplies for electric vehicles, wind turbines, and advanced defense systems, especially amid supply chain disruptions from China.
ScrapInsight Commentary
Critical Metals’ Greenland expansion signals a rare opportunity in heavy rare earths outside China. As ESG scrutiny and supply chain nationalism grow, projects like Tanbreez will shape long-term market access and geopolitical leverage. Rare earth prices may remain volatile, but resource security now outweighs short-term margin concerns.
