Greenland’s largest rare earth mineral developer, Tanbreez Mining, stated that officials from the United States and Denmark urged them last year not to sell their rare earth project to enterprises associated with the Chinese Communist Party.
This action highlighted the long-term importance of Greenland to American officials, even predating the recent announcement by former U.S. President Trump’s interest in acquiring Greenland.
Greenland, with an area three times the size of Texas but only around 60,000 residents, possesses vast rare earth mineral reserves and occupies a strategically important location. Rare earths are crucial raw materials for today’s manufacturing industry, essential for high-tech sectors like electric vehicles and missile systems.
In recent years, China’s control over rare earth mining and processing has raised concerns among Western countries. Researchers from the U.S. government are diligently analyzing mineral deposits around the world to assess the progress of increasing rare earth supply from regions outside of China.
Greg Barnes, the CEO of Tanbreez Mining, a senior geologist from Perth, Australia, and also the founder and chief geologist of the company, revealed to Reuters that U.S. officials visited Greenland twice last year to convey a message to the financially strapped company: do not sell the deposits to buyers connected with the Chinese Communist Party.
Tanbreez’s mineral deposits are estimated to contain over 28 million tons of total rare earth oxides, with nearly 30% consisting of the highly valued “heavy rare earth elements” (HREE) crucial for defense applications. The reserves also include gallium, subject to export restrictions by China last year.
Ultimately, Barnes sold control of Tanbreez Mining to New York-based Critical Metals Corp as part of a complex transaction set to finalize in 2025.
Tanbreez Mining aims to extract 500,000 tons of eudialyte annually – a mineral rich in deep red rare earths – before 2026.
Tony Sage, CEO of Critical Metals Corp, stated to Reuters that under strong urging from U.S. officials, Barnes accepted $5 million in cash and $211 million in Critical Metals Corp stock, significantly lower than what Chinese companies offered.
Neither executive disclosed which officials they met with or which Chinese companies made acquisition offers.
However, the third-largest shareholder of Critical Metals Corp is the bond trading firm Cantor Fitzgerald, led by Howard Lutnick, currently nominated by Trump as Secretary of Commerce.
Sage mentioned he had never met or spoken with Lutnick but acknowledged Cantor’s investment as a positive factor for his company.
Critical Metals Corp applied to the U.S. Department of Defense last year for funds to develop rare earth processing facilities. Sage anticipates negotiations to continue post-Trump’s inauguration, with his transition team already in contact.
“We are discussing selling (rare earths) to the U.S. and building processing plants in the U.S.,” Sage stated.
Critical Metals Corp has also engaged in supply negotiations with U.S. defense contractors Lockheed Martin, Raytheon Technologies, and Boeing.
The sale of Tanbreez to Critical Metals Corp signifies a more successful outcome for U.S. officials in Greenland compared to their actions in Africa, where they have been working to counter Chinese control over central African copper belts.
On Tuesday, Trump’s son, Donald Trump Jr., arrived in Nuuk, the capital of Greenland, for a private visit. The day before his arrival, Trump reiterated his desire for the U.S. to own the island.
Denmark has repeatedly stated that Greenland is an autonomous territory of the Kingdom of Denmark and is not for sale.