Greenland Resources Inc announced a significant step towards securing Europe's critical raw material supply chain on May 20. It has signed a non-binding Memorandum of Understanding (MOU) for long-term molybdenum supply with Cogne Acciai Speciali, a global leader in the special steel and long stainless steel industry based in Italy. This strategic alliance underscores the growing urgency for resilient and sustainable raw material sourcing within the European Union.

The MOU paves the way for a definitive long-term supply agreement for Ferromolybdenum and Molybdenum Oxide (Mo-oxide), with extraction planned in Greenland and roasting operations set for Belgium. This integrated approach aims to provide Cogne Acciai Speciali with a stable, responsibly sourced, and long-term secure molybdenum supply. Crucially, the partnership emphasizes high sustainability standards and promises low Scope 1 & 2 emissions, aligning with the EU's ambitious climate goals and increasing demand for ethically produced materials.

Molybdenum, a vital alloying element, significantly enhances the strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance of steel. It is indispensable in a wide array of high-tech sectors, including aerospace, defense, energy generation (especially renewables), and advanced manufacturing. The European Union, despite being the second-largest molybdenum user globally, currently relies entirely on external sources for its molybdenum needs. This dependence highlights the strategic importance of projects like Greenland Resources' Malmbjerg Molybdenum Project.

Italy, following Germany, is the second-largest consumer of molybdenum within the EU. The Italian government's recent establishment of a strategic equity raw materials fund further underscores the nation's commitment to enhancing industrial autonomy and supporting the energy transition and circular economy initiatives. The proposed supply chain from Greenland, an EU associate country, via Belgium, directly contributes to these objectives by creating a secure and geographically proximate source of a critical metal.

Greenland Resources' Malmbjerg project, a 100% owned Climax-type primary molybdenum deposit in central east Greenland, is well-positioned to address Europe's supply gap. A Definitive Feasibility Study completed by Tetra Tech in 2022 highlighted robust economics, with an estimated average annual production for the first ten years of 32.8 million pounds of contained molybdenum metal. This volume represents approximately 25% of the EU's total yearly consumption, offering a substantial domestic supply for decades to come. The project also benefits from a previous exploitation license granted in 2009 and is supported by the European Raw Materials Alliance (ERMA), an organization within the EIT (a body of the European Union), emphasizing its strategic alignment with EU objectives.