Greenland Resources has entered a memorandum of understanding (MoU) with Hempel Metallurgical for the long-term supply of molybdenum to the German steel industry.
The MoU, which includes the provision of molybdenite concentrate and secondary products such as ferromolybdenum and molybdenum oxide, is a significant step towards establishing Greenland Resources as the largest molybdenum supplier to Germany.
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The company, based on its NI 43-101 feasibility study and existing offtake and roasting agreements, anticipates making further announcements concerning direct offtake agreements with German steel manufacturers.
This partnership is set to provide high-quality, low-emission molybdenum from Greenland Resources, with roasting to take place in Belgium.
Germany, the largest molybdenum user in the EU, consumed 16.3 million pounds in 2024, according to the International Molybdenum Association.
Italy and Finland, other significant molybdenum users in the EU, have also entered into direct offtake agreements with Greenland Resources, which is developing the Malmbjerg project in east-central Greenland.
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By GlobalDataThe open-pit mine located approximately 30km from the coast is expected to produce pure molybdenum with by-product magnesium.
The primary molybdenum from Malmbjerg is particularly suited for EU defence and high-performance steel applications due to its low levels of deleterious elements and the promise of long-term supply security.
The initiative has the capacity to provide 25% of the total molybdenum demand within the EU and can completely cover the molybdenum needs of the EU’s defence sector.
In June, Greenland Resources was awarded a 30-year exploitation licence for molybdenum and magnesium at the Malmbjerg project, with a stipulation to commence mining activities by December 2028 and the possibility of a licence extension of up to 50 years.
The company is also committed to addressing additional requirements following the issuance of the exploitation licence.
