The Trump government is in conversation to take an interest Critical Metals Corp ) Tanbreez Project.
Four people who are familiar with the discussions told Reuters that the administration is considering converting a $ 50 million Defense Production Act subsidy into a stock investment, which marks a potentially new front in Washington’s pressure to protect critical mineral supply chains.
“Hundreds of companies are approaching us who are trying to make the administration invest in their critical mineral projects,” said a senior Trump Administration official. “There is absolutely nothing close to this company at the moment,” the civil servant added, and emphasized that discussions remain for the time being.
Also read: US pushes stock allowances into the critical mineral sector of Australia
After deployment in Lithium Americas (NYSE: LAC) and MP -Materials (NYSE: MP), Such an investment would be the next step for the White House, because it wants to reduce the dependence on Chinese controlled production and processing.
The Tanbreez deposit, located in the south of Greenland near the city of NarsaqContains approximately 45 million tonnes of rare-earth-bearing rock. These materials are essential for various technologies, including electric vehicles, wind turbines, advanced defense systems and semiconductor components.
President Donald Trump has showed interest in Greenland On several occasions famous threaten to buy the island in 2019 and again earlier this year. Although the proposal was rejected on a large scale, the US continued by the judge of Greenlandic officers, including by visits by Vice President JD Vance Earlier this year.
Last year Tanbreez bought critical metals for $ 5 million in cash and $ 211 million in stock, after the successful encouragement of American officials to the previous owner to reject a higher bid from a Chinese buyer. The development costs of the mine are estimated at $ 290 million, with the initial production aimed at 2026.
Once operational, it could produce around 85,000 tons of rare earth concentrate annually, in addition to smaller but strategically essential quantities of gallium and tantalum, both minerals on which China recently imposed export restrictions.
The Trump administration started the company with the company about six weeks ago and evaluated the conversion of the $ 50 million subsidy in equity. From the end of Friday, critical metals had a market capitalization of approximately $ 787 million, which would translate into a interest of around 6.3% in the company, although the final structure remains uncertain. The discussions are independent of a proposed $ 120 million loan package that is considered by the American export-import bank to finance developmental activities at an early stage at Tanbreez.
The interest in Greenland’s means is a global issue. Great -Britain has also deepened its involvement in Greenland. Politics reported That the British government was looking for free conversations with the island and closer cooperation in the field of critical minerals. British companies have about a third of the mining permits of Greenland.
Price watch: Critical Metals shares have risen 77.69% premarket, currently at $ 14.18 per share from 5:00 am et.
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