US Export Import Bank considers a $120 million loan for the Greenland Rare Earth Project
By Ernest Shader
(Reuters) – Critical Metals Corp has received a letter of interest from the US Export Bank (EXIM) for loans worth up to $120 million to fund the Tanbreez Rare Earths mine in Greenland.
The loan, when approved, will help to increase access to minerals at the heart of global economic and trade and offset market leaders’ dependence on China. It also comes after President Donald Trump openly meditated on the acquisition of Danish island territory earlier this year.
New York-based Critical Metal, reviewed by Reuters in a letter dated June 12, meets the initial requirements for applying for a $120 million Exim loan, and if approved, it would be longer than the company has private funds if it has a 15-year repayment period.
The project must be “good capitalized with sufficient stock from strategic investors” in order to receive the loan, the letter said.
EXIM, the US government’s export credit agency, said in the letter that key metals qualify for loan programs designed to support businesses competing with China.
The Tanbreez project will cost $290 million and will use the Exim fund to fund technical work and introduce the mine into initial production by 2026. When fully operational, the mine is expected to produce 85,000 tons of rare earth concentrate and two minor metals per year.
“This funding package is expected to unlock great value for the project and stakeholders,” said Tony Sage, CEO of the company.
Exim representatives were not immediately able to comment.
The move is the latest in Washington’s suite of supportive actions against the Tambrees deposits and Greenland’s mining sector. Reuters reported in January that former President Joe Biden’s administration had successfully lobbyed the private Tumbreeze mining industry to not sell to Chinese developers but instead sell to key metals.
Biden officials had recently visited Nuuk in November, as they were hoping to seek further private investment into the island. Trump sent Vice President J.D. Vance to the island in March.
The island’s mining sector has been developing slowly in recent years, hampered by limited investor interest, bureaucratic challenges and environmental concerns. Currently, only two small mines are in operation.
Rare earths have strong magnetic properties that are important for the high-tech industry, ranging from electric vehicles to missile systems. Their need has sparked fierce competition as Western countries try to reduce their reliance on China’s near-consistency control of extraction and processing.