Critical Metals has received a letter of interest (LoI) from the US Export-Import Bank (EXIM) for financing the company’s Tanbreez rare earths mine in Greenland with a loan of up to $120m, according to a Reuters report, citing sources.

This move could mark the Trump administration's first overseas investment in a mining project and potentially reduce US reliance on China for critical minerals.

Amid trade tensions, Beijing imposed export restrictions on rare earths, intensifying the global search for new sources.

Critical Metals was informed that it meets the initial criteria to apply for the loan, which offers a 15-year repayment term.

According to the report, the loan is contingent on the project being well-funded with equity from strategic investors.

The Tanbreez mine, with an estimated cost of $290m, is expected to begin initial production by 2026, eventually yielding 85,000 tonnes per annum of rare earths concentrate.

Critical Metals CEO Tony Sage was quoted as saying: “This funding package is expected to unlock significant value for our project and our stakeholders.”

The loan would support technical work and reaching initial production stages. EXIM representatives could not be reached for immediate comment.

Washington has previously shown support for Greenland's mining sector, with Biden administration officials lobbying Tanbreez Mining to avoid a sale to a Chinese developer.

The mining sector in Greenland has faced challenges including limited investor interest and environmental concerns. Only two small mines are currently operational in the region.

Greenland’s Minister for Business and Mineral Resources, Naaja Nathanielsen, has highlighted the need for external investment to bolster the country's mining and tourism sectors, urging Europe and the US to consider investment opportunities.

Critical Metals still needs to develop material processing facilities within the US, a goal bolstered by the potential EXIM loan.

The company previously sought funding from the US Department of Defense for a processing facility, but the process stalled.

To meet additional funding requirements, Critical Metals is exploring options such as offtake agreements and funding from other US agencies. The company has engaged in supply discussions with Lockheed Martin and other defence contractors.

EXIM has also expressed interest in financing Perpetua Resources' mine in Idaho.

"EXIM Bank considers $120m loan for rare earths mine in Greenland" was originally created and published by Mining Technology, a GlobalData owned brand.