Greenland Resources is poised to become a significant supplier of molybdenum and magnesium to the European Union and bolster Greenland's economy.
Greenland Resources Inc. and its wholly-owned Greenlandic subsidiary, Greenland Resources A/S, announced today the signing of a 30-year exploitation permit for molybdenum and magnesium. The license, covering the Malmbjerg project (now officially known as Piiaaffik Høstakken) in East Greenland. The company holds the option to extend the license period for an additional 20 years, bringing the potential total to 50 years.
Minister for Business, Mineral Resources, Energy, Justice and Gender Equality, Naaja H. Nathanielsen noted the timely nature of this permit, coming shortly after Greenland Resources secured a 10-year off-take agreement with some of Europe's largest steel companies. "It is a sign of confidence in our mining industry in general, but also in Greenland Resources and their project," she stated, looking forward to continued collaboration.
Echoing these sentiments, Naalakkersuisut's Minister for Social Affairs, Labour Market, Internal Affairs and Environment, Bentiaraq Ottesen, stressed the importance of carrying out mineral projects with respect for nature and a strong focus on environmental and social responsibility. Minister Ottesen confirmed that mining projects must adhere to clear environmental frameworks, while also recognizing their potential for local job creation and economic development.
Ruben Shiffman, Executive Chairman of the Board of Greenland Resources A/S, conveyed his gratitude to the Greenlandic government. He highlighted Greenland Resources' proven track record in sustainable mining and its commitment to generating wealth and prosperity for communities. According to the company's NI 43-101 Feasibility Study, the Malmbjerg project is projected to generate close to US$1 billion in taxes during its 20-year mine life, while also creating critical infrastructure on the east coast and providing new life skills to the local workforce.
Shiffman emphasized the strategic importance of the Malmbjerg project in the current global climate of deglobalization and increasing defense expenditures. The mine is expected to supply approximately 25% of all EU molybdenum needs and a remarkable 100% of its defense applications, given that over 80% of metallic materials for defense require molybdenum. He noted that the EU, the world's second-largest user of molybdenum with significant processing capacity, currently has no domestic extraction. Furthermore, with only one country presently supplying the EU with primary molybdenum (ideal for high-performance steel and defense) and magnesium (vital for electric vehicle production), Malmbjerg is poised to significantly alter this reliance.
Greenland Resources will now focus on fulfilling the remaining requirements that can be met post-license grant. The exploitation license mandates that mining activities commence no later than December 31, 2028, unless an extension is approved.
