European Lithium Ltd and Critical Metals Corp have reported robust economics from the recently completed Scoping Study for the Tanbreez Rare Earth Project in southern Greenland, supported by an existing 30-year approved exploitation permit.
The study estimates a pre-tax Net Present Value (NPV) ranging between US$2.4 billion and US$3.0 billion at discount rates of 10% and 8%, respectively. After-tax NPV estimates range between US$1.8 billion and US$2.2 billion, assuming a 25% tax rate. The project also delivers a high Internal Rate of Return (IRR) of 162% before tax and 116% after tax, with a payback period of approximately three years.
It should be noted that The Scoping Study production plan is underpinned solely by the Indicated Mineral Resource, with no contribution from the Inferred Mineral Resource category, pointing to plenty of future upside.
These projections are based on a 19-year mine life, extracting 24.25 million tonnes of eudialyte ore from the 45 million tonne Indicated Mineral Resource, which comprises 95% of the production target. The Scoping Study does not consider chemical processing, which is intended to occur in the USA or Europe.
2016 Inferred and Indicated Resource Estimate.
Significantly, the Tanbreez Project holds an approved exploitation licence (MIN 2020-54) granted by the Government of Greenland in 2020, valid until 2050. This licence grants the right to mine a range of critical rare earth elements including neodymium, praseodymium, dysprosium and terbium – essential inputs in permanent magnet production – as well as zirconium and niobium.
The company highlighted that the project’s favourable environmental profile, including low uranium and thorium content, supports ongoing community and regulatory engagement.
“I am delighted to report the outstanding results from Tanbreez Scoping Study with the project economics, low capital cost and projected REE and rare metal revenue as a major milestone for our company and its stakeholders,” chairman and CEO Tony Sage said.
“Tanbreez is truly proving to be an exceptional asset in a safe jurisdiction with strategic partners and government agencies focused on establishing secure western supply chains for these critical material”.
“The partial standout value alone in the Tanbreez’s magnet rare earth oxides – neodymium, praseodymium, dysprosium, and terbium of up to 75% is critical for permanent magnet production adding significantly to our bottom-line estimated profitability”
A Pre-Feasibility Study is expected to follow, building on this initial economic assessment.
Greenland government backs Tanbreez with 30-year exploitation permit
The Government of Greenland granted a 30-year exploitation permit to Tanbreez Mining Greenland A/S, providing a foundational approval for the development of the Tanbreez Rare Earth Project. The permit, covering an 18 square kilometre area under Licence MIN 2020-54, allows for the extraction of rare earth elements contained in the eudialyte mineral, positioning the project for long-term production.
In support of this development, Critical Metals Corp. and European Lithium Ltd engaged Agricola Mining Consultants Pty Ltd to prepare a Preliminary Economic Assessment and Scoping Study for the project. The study underlines the project’s economic viability as a standalone mining and processing operation, with plans to export an eudialyte concentrate.
Tanbreez’s rare earth mineralisation is hosted within the kakortokite unit—a layered igneous rock formation extending over approximately 5 kilometres by 2.5 kilometres and 270 metres in thickness, with an estimated volume of 4.7 billion tonnes.
The Life of Mine Mining rate for kakortokite over 25 years.
The Scoping Study identifies the project’s standout potential in magnet rare earth oxides—neodymium, praseodymium, dysprosium, and terbium—which together comprise up to 75% of the concentrate. These elements are critical to permanent magnet production and represent a substantial driver of the project’s bottom-line profitability.
It also marks a significant milestone for European Lithium and confirms the project’s capacity to support a long-life operation targeting strategic rare earth supply chains.