PEA values Critical Metals’ Tanbreez rare earth project in Greenland at $3B

Critical Metals (Nasdaq: CRML) announced Monday it has released an independent preliminary economic assessment (PEA) on the Tanbreez project in southern Greenland.

Tanbreez is one of the largest rare earth deposits in the world, with a 4.7-billion-tonne mineralized kakortokite unit.

According to the PEA, the Tanbreez project is expected to have a net present value (NPV) of approximately $3 billion (approximately $2.8 billion to $3.6 billion at discount rates of 15% and 12.5%, respectively, before tax), with an internal rate of return (IRR) of 180%.

The NPV and IRR calculations were based off an initial mineral resource estimate totalling 44.97 million tonnes of rare earth materials (indicated and inferred), which is roughly 1% of the resources within the host rock. 

Earlier this month, Critical Metals confirmed the Tanbreez resource through the release of a technical report in compliance with Regulation S-K 1300.

Key REE project

The Tanbreez project will follow a phased growth strategy, with initial production of around 85,000 tonnes of rare earth oxides per annum, scalable to 425,000 tonnes after modular expansion. The resource base of 45 million tonnes grading 0.40% total rare earth oxides, with 27% in heavy rare earths (Dy, Tb, Y), is open laterally and at depth.

The mining license at Tanbreez was granted through to 2050 due to the low-radioactivity mineralization and ESG-aligned development path. The coastal site has deep-water fjord access and proximity to existing infrastructure.

According to Critical Metals, Tanbreez represents one of the few Western-aligned heavy rare earth sources and is tapped as a potential partner for US/EU critical materials strategy. It is also positioned as a long-term supplier to their defense sectors.

“The release of the PEA for Tanbreez confirms the exceptional economic credentials of the project and fast tracks the development strategy for this game-changing rare earth deposit,” Critical Metals CEO Tony Sage said in a news release.

“With significant macroeconomic tailwinds and global policy initiatives, including the US recent executive order to tap the Department of Defense to expand the production of rare earths, the Tanbreez project is expected to play an essential role in supporting an integrated Western supply chain,” Sage added.

As Critical Metals continues to progress its verification work and garner key findings from third-party reports, the company said it expects to conduct additional drilling campaigns and to complete a definitive feasibility study by the end of 2025.

Critical Metals’ stock was up 3.9% in late afternoon trading on the NASDAQ. The company has a $139.6 million market capitalization.