Economy

Greenland mine uncovers rare earths hit by China's export bans

Yesterday 11:20

By: Dakir Madiha

Greenland mine uncovers rare earths hit by China's export bans

A Canadian mining firm has made a significant find in Greenland's remote interior, detecting rare earth elements in samples from its established molybdenum deposit. Greenland Resources Inc., listed on the Toronto Stock Exchange, re-examined archived drill cores from the Malmbjerg project in east-central Greenland. The analysis revealed total rare earth oxide concentrations reaching up to 579.5 parts per million, alongside traces of magnesium and gallium, both deemed critical minerals.

The company selected 233 samples from five diamond drill holes based on molybdenum levels exceeding economic thresholds for proven and probable reserves. Testing at SGS S.A. in Vancouver covered 56 elements, confirming the presence of heavy rare earths like holmium, erbium, thulium, europium, and ytterbium. These discoveries enhance the strategic value of Malmbjerg, already prioritized under the European Commission's RESourceEU action plan, which allocates 3 billion euros in 2026 to fast-track critical raw materials projects.

The timing aligns with escalating global supply chain tensions. Western nations seek alternatives to China's dominance, after Beijing imposed export controls on seven heavy rare earths in April 2025 and five more in October. This leaves the West racing to secure independent sources amid rising demand for defense, technology, and green energy applications.

Greenland Resources highlights the project's readiness, with 20 years of planned molybdenum processing and long-term offtake agreements with major global steelmakers. CEO Dr. Ruben Shiffman noted that the rare earth grades mirror those in other advanced projects nearing production. Malmbjerg holds proven and probable reserves of 245 million tonnes grading 0.176% molybdenum disulfide, with a 30-year exploitation license granted in June 2025 and potential operations starting in 2028; it could supply 25% of the EU's molybdenum needs and fully meet its defense requirements.

Geopolitical interest in Greenland's mineral wealth has surged. The territory holds an estimated 36 million tonnes of rare earths, with 1.5 million tonnes economically viable. U.S. discussions under the Trump administration have eyed these resources to counter Chinese reliance. Next, the firm will conduct petrographic analysis to pinpoint mineral species, paving the way for parallel recovery efforts alongside primary molybdenum extraction.