Greenland Resources awarded 30-year molybdenum exploitation licence
Canadian company Greenland Resources has been awarded a 30-year exploitation licence for molybdenum and magnesium – minerals that are key to the EU’s steel, defence and electric vehicle industries.
Greenland Resources executive chairperson Ruben Shiffman said that the Malmbjerg project, with its forecast production of 32.8-million pounds a year of molybdenum, would be key for the EU at a time of deglobalisation and significant growth in defence expenditures.
“The EU is the second largest worldwide user of molybdenum, has large processing capacity and the best speciality steel products, but has no molybdenum extraction. Only one country currently supplies the EU with primary molybdenum . . . Malmbjerg will change this,” he said in a statement on Thursday, following the award of the exploitation licence.
“The project will be able to supply about 25% of all EU molybdenum needs and 100% of defence applications (more than 80% of the metallic materials for defence require molybdenum),” noted Shiffman.
Naalakkersuisut Business, Mineral Resources, Energy, Justice and Gender Equality Minister Naaja Nathanielsen said the exploitation permit to Greenland Resources came shortly after the company entered into a ten-year offtake agreement with some of the biggest steel companies in Europe.
“It is a sign of confidence in our mining industry in general, but also in Greenland Resources and their project.”
The Malmbjerg project benefits from a definitive feasibility study completed by Tetra Tech in 2022, with an $820-million capital expenditure and a levered after-tax internal rate of return of 33.8% and payback of 2.4 years, using an $18/lb molybdenum price.
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