Greenland Mines' rare earth project could supply third of non-China output: study

Greenland Mines' wholly-owned Sarfartoq neodymium-praseodymium rare earth project in southwest Greenland could process 1.4 million metric tons/year of mineral ore over a nine-year operating life, according to an independent initial assessment.

The planned annual Nd-Pr oxide output from the ST1 deposit alone would represent about 34% of all Nd-Pr oxide refined outside China, based on 2025 consumption levels, Greenland Mines said. Neodymium and praseodymium account for about 84% of the project's in-concentrate basket value, underscoring the deposit's exposure to magnet rare-earth demand.

In a statement released Aug. 25, the Nasdaq-listed critical minerals developer said the mine plan for ST1, the first of 40 sub-site deposits, envisages a hybrid open-pit and underground operation processing 12.2 million mt of material at an average delivered head grade of 1.32% total rare earth oxides, or TREO.

The project's indicated mineral resource is estimated at 6.9 million mt grading 1.60% TREO, while inferred resources total 5.3 million mt grading 0.96% TREO under the same hybrid mining scenario.

Metallurgical test work completed by SGS Canada's Lakefield facility in 2026 confirmed flotation concentrates of about 8.25% TREO at a design recovery of 63.6%, according to the company. Greenland Mines said the rare earth mineralization is hosted in conventional rare earth minerals that are already processed commercially elsewhere.

The study was prepared in adherence with US SEC Regulation S-K Subpart 1300 and has an effective date of July 31, 2026. Agricola Mining Consultants Pty Ltd conducted the initial assessment, with the technical information independently reviewed and approved by Malcolm Castle.

Sarfartoq is located about 60 km southwest of Kangerlussuaq in West Greenland, with the mining license covering about 191 square kilometers. Greenland Mines said the ST1 deposit accounts for well under 1% of the license area, while five other known rare-earth occurrences — ST40, ST19, ST24, ST31 and ST43 — have been identified along a 32-km outer ring structure and remain largely untested.

The company said it plans targeted infill drilling to upgrade inferred resources, pilot-scale metallurgical test work, mine engineering planning and continued environmental and social baseline studies as it advances Sarfartoq toward a prefeasibility study.

The announcement comes as Western governments and technology manufacturers intensify efforts to diversify critical mineral supply chains away from Chinese producers. China accounted for 61% of global mined supply and 91% of global refining and processing capacity for key rare earths in 2024, according to the International Energy Agency.

Platts, part of S&P Global Energy, assessed neodymium-praseodymium oxide at $115/kg CIF North America on July 31, down $5/kg from the prior month. The assessment for terbium oxide rose to $4,900/kg CIF North America in July from $4,800/kg in June.