Greenland Mines Sarfartoq Rare Earth Project Valued at US$2.05B with 118% IRR

The Quick Take

• Greenland Mines Sarfartoq Nd-Pr project valued at up to US$2.05 billion with 118.6% pre-tax IRR
• ST1 deposit alone would produce approximately 34% of all NdPr oxide refined outside China annually
• The project represents a significant non-China source of neodymium-praseodymium for EV magnets and wind turbines

Greenland Mines has released a maiden S-K 1300 economic study for its Sarfartoq neodymium-praseodymium rare earth project in Greenland, valuing the ST1 deposit at up to US$2.05 billion with a pre-tax internal rate of return of 118.6%. Critically, the NdPr oxide production projected from the ST1 deposit alone would represent approximately 34% of all NdPr oxide currently refined outside China at 2025 consumption levels. NdPr is the critical rare earth element used to manufacture permanent magnets in electric vehicle motors and wind turbine generators — the two fastest-growing applications in the global clean energy transition.

The Sarfartoq economics represent a potentially transformative supply chain development for EV and wind turbine manufacturers seeking to diversify away from China-controlled rare earth refining, which currently dominates 85-90% of global NdPr oxide processing. Companies including Tesla, Volkswagen, Toyota, Vestas, and Siemens Gamesa have all identified rare earth supply chain diversification as a strategic priority following China export restriction signals. A 34% non-China NdPr supply contribution from a single project would materially reduce the supply chain concentration risk that has driven significant government investment in rare earth processing across the US, Australia, Canada, and Europe in recent years.

Watch the Sarfartoq feasibility study completion timeline and financing arrangements as the critical next steps that determine whether the project advances toward construction decisions. Government offtake or financing support from the US, Canadian, or European governments would de-risk project economics significantly and accelerate the timeline. The macro variable is NdPr oxide spot pricing: the 118.6% pre-tax IRR is calculated at specific price assumptions — a sustained NdPr price above US$70/kg would strengthen project economics and attract institutional mining capital, while a price decline below US$50/kg would reduce the IRR materially and require project redesign or delay.

Synthesized from 1 source.