Reuters: US pushes Greenland rare earths developer to avoid selling to China

In a bid to secure strategic control over critical mineral resources, US and Danish officials actively lobbied the developer of Greenland's largest rare earths deposit last year, urging the company not to sell the project to firms linked to China.

Greg Barnes, CEO of Tanbreez Mining, confirmed to Reuters that US officials visited the southern Greenland site twice in 2024, delivering a clear message: avoid Chinese-backed buyers at all costs, per Caliber.Az.

Tanbreez Mining is working to develop one of Greenland’s most promising rare earths deposits, essential for industries like electric vehicles and missile systems, where rare earth elements’ magnetic properties are vital. The US has shown increasing interest in Greenland’s critical minerals, a long-standing priority for Washington, long before President-elect Donald Trump's recent comments about potentially acquiring the territory.

Barnes explained that US pressure influenced Tanbreez’s decision to sell the project to New York-based Critical Metals (CRML), rather than to Chinese firms, despite more lucrative offers from China. Tanbreez will be sold in a deal that involves $5 million in cash and $211 million worth of stock, significantly lower than the proposals from Chinese companies, according to Tony Sage, CEO of Critical Metals.

“The pressure was definitely there not to sell to China,” Sage confirmed. Barnes emphasized that Chinese offers were not seriously considered, as they lacked clarity on payment plans.

Despite the political pressure, the sale of Tanbreez highlights a shift in the rare earths sector. Analysts note that while the Tanbreez deposit is large, its mineral composition is not the most commercially attractive. David Merriman of Project Blue, a minerals consultancy, remarked that the chances of the project reaching commercial production are slim due to its complex mineralogy.

The US appears to be gaining influence in Greenland’s mining sector, securing rare earth projects that were previously overlooked by investors. "Greenland is not for sale, but it is open for business," said Dwayne Menezes, head of the Polar Research and Policy Initiative. He added that Greenland would welcome greater investment from the US as it continues to pursue economic partnerships to develop its mineral wealth.

In contrast, a rival Greenland rare earths project from Energy Transition Minerals has faced setbacks, including ongoing legal battles, and is being closely linked to Chinese interests. This contrast underscores the growing geopolitical competition over Greenland’s mineral resources, especially rare earth elements.

By Tamilla Hasanova