Trump Administration may fund rare earth mine in Greenland to reduce reliance on China

The news agency Reuters revealed Sunday that Critical Metals Corp received a letter of interest from the Export-Import Bank of the United States (EXIM) for a loan of up to $120 million, which would be intended to finance its Tanbreez rare earths mine in Greenland. The media revealed that this action would represent the first foreign mining investment by the U.S. President's Administration Donald Trump, highlighting also that such decision would have as main reason to reduce the current dependence on China, a country that today is considered the leader in this market.

As revealed by Reuters in its article, a letter dated June 12 indicated that the company, which is based in New York, officially complied with all the necessary requirements to apply for the US$120 million loan and that, if approved, it would have 15 years as repayment term. According to what is written in the letter by EXIM, which acts as an export credit agency for the U.S. government, the project must be "well capitalized with sufficient capital from strategic investors" in order for Critical Metals to receive the loan.

The company could become a powerful figure in the market.

Elsewhere in the letter, which was reviewed and verified by Reuters, EXIM noted that the company qualified for a loan program intended to provide support to companies currently competing with China. Also, the media outlet noted that Critical Metals' rare earths mine is currently estimated at $290 million, adding that EXIM funds would be used to finance technical work and bring the project to initial production by 2026.

On this point, the news agency noted that Critical Metals CEO Tony Sage commented that, when the operation is complete, the company expects the Tanbreez mine to achieve production of 85,000 metric tons of rare earth concentrate and two minor metals per year, which would automatically make Critical Metals a major player in the market, with enough power to compete with China. "This financing package is expected to unlock significant value for our project and our shareholders," Sage commented.