U.S. Blocks Chinese Access to Greenland Rare Earths in Strategic Move
Learn how U.S. and Danish officials influenced Greenland’s largest rare earth project sale, reshaping the global resource race.
U.S. and Danish officials reportedly intervened last year to dissuade Greenland’s largest rare earth deposit developer from selling its project to Chinese-linked firms. The CEO of Tanbreez Mining, Greg Barnes, confirmed the lobbying efforts to Reuters, highlighting the ongoing geopolitical tug-of-war over critical minerals.
In a bid to curb China’s dominance in rare earth mining and processing, U.S. representatives visited the Tanbreez project in southern Greenland twice, urging the financially struggling company to steer clear of Beijing-backed buyers. Rare earth minerals, vital for technologies such as electric vehicles and defense systems, have become a focal point of strategic competition between China and Western nations.
U.S. Influence Reshapes Rare Earth Investments
Despite higher offers from Chinese firms, Barnes sold Tanbreez to New York-based Critical Metals (CRML.O) for $5 million in cash and $211 million in stock, a deal considerably lower than offers from China. Critical Metals CEO Tony Sage confirmed the U.S. exerted “significant pressure” to ensure the project remained out of Chinese control.
While specifics on the Chinese bidders and U.S. officials remain undisclosed, the transaction underscores Washington’s strategic push to diversify rare earth supply chains. Analysts, however, remain skeptical about the project’s potential due to its complex mineralogy. David Merriman, a research director at consultancy Project Blue, noted that while Tanbreez holds significant reserves, its challenging composition diminishes its commercial prospects.
Greenland’s Resource Race Heats Up
The sale represents a victory for U.S. interests in Greenland, contrasting with challenges faced in Africa, where efforts to counter China’s dominance in the mineral-rich copper belt have seen limited success. Greenland, though not for sale, has signaled its openness to business. “Greenland welcomes greater U.S. investment,” said Dwayne Menezes, head of the Polar Research and Policy Initiative in London.
Meanwhile, a competing Greenland rare earth project led by Energy Transition Minerals (ETM.AX), with China’s Shenghe Resources as its largest shareholder, remains bogged down in legal disputes.
Talks with Washington Continue
As part of its plans, Critical Metals has applied for funding from the U.S. Department of Defense to develop a rare earths processing facility. However, the review process has stalled, likely awaiting policy direction from the incoming Trump administration. Discussions with defense contractors like Lockheed Martin and potential talks with RTX and Boeing indicate strong U.S. interest in securing rare earth supplies domestically.
The Tanbreez deposit is estimated to contain 30% heavy rare earths, critical for defense applications, along with gallium, a resource China recently restricted for export.
Broader Implications for Greenland’s Resources
Other companies, including GreenRoc Mining (GROC.L) and Neo Performance Materials (NEO.TO), are also exploring Greenland’s untapped potential. GreenRoc has applied for a license to exploit a graphite deposit and has engaged in funding talks with U.S. officials.
The Tanbreez project highlights the intensifying global scramble for critical minerals, with Greenland emerging as a key battleground in the U.S.-China competition. As Washington deepens its involvement, the island’s vast mineral reserves could play a pivotal role in reshaping global supply chains.
Source: (Reuters)
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