This expansion further cements Greenland's role in supplying a critical raw material to the European Union, including for specialized molybdenum metal and powders vital for German high-tech and defense sectors.
Greenland Resources Inc. announced a major strategic amendment to its binding long-term sales and toll conversion agreement with the global molybdenum processing giant, Molymet. Following the initial memorandum of understanding signed on May 10, 2023, the agreement has been expanded to include Molymet Germany in Bitterfeld, in addition to Molymet Belgium N.V. in Ghent.
This expansion is a pivotal move, positioning Greenland Resources’ Malmbjerg Project to supply the highly specialized German market. The molybdenum concentrate will now be utilized to produce highly specialized molybdenum metal and powders at the Bitterfeld facility. These products are crucial alloy components finding applications across various high-growth sectors, including consumer goods, electronics, medical equipment, and superalloys.
The move comes as European nations, particularly Germany, seek to secure reliable, non-Chinese sources for critical raw materials. Molybdenum holds a significant place on the German Mineral Resources Agency (DERA)'s latest 2023 Criticality List, categorized in the highest risk "category 3" of strategic raw materials. Greenland Resources' Malmbjerg Project in central east Greenland, a 100% owned Climax-type primary molybdenum deposit, is poised to address this vulnerability.
The existing portion of the agreement with Molymet Belgium N.V. in Ghent focuses on supplying molybdenum oxide and ferromolybdenum, which are essential for the European Union's industrial base. With the Malmbjerg project's projected average annual production for years one to ten being 32.8 million pounds of contained molybdenum metal—representing approximately 25% of the EU's total yearly consumption—the company is set to become a dominant and secure supplier for the bloc. Crucially, this output is also estimated to cover 100% of the EU’s defense needs, highlighting its strategic geopolitical importance.
The project boasts Proven and Probable Reserves of 245 million tonnes at 0.176% MoS2, containing a massive 571 million pounds of molybdenum metal. Furthermore, the mine has a low-impact design, focusing on reduced water usage, low aquatic disturbance, and a small operational footprint via modularized infrastructure. It also produces magnesium as a byproduct, diversifying supply in a market currently dominated 89% by China.
By expanding its partnership with Molymet, Greenland Resources is not only derisking its future production but also establishing a vertically integrated supply chain for Europe's most critical high-tech needs.
