Greenland Resources has been granted a 30-year exploitation licence for molybdenum and magnesium at the Malmbjerg project in Greenland.
The licence stipulates that mining activities must commence by 31 December 2028 and allows for a potential licence extension of up to 50 years.
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The company is also focusing on addressing additional requirements that can be met following the issuance of the exploitation licence.
Greenland Resources has committed to an environmentally conscious mine and process plant design, aiming to reduce CO₂ emissions and water usage.
The Malmbjerg project is a pure molybdenum open-pit venture in east-central Greenland near the coast, north-west of Iceland and close to Mestersvig airport.
The project is expected to generate more than $800m (DKr5.18m) in corporate taxes for the Greenland Government over its lifetime.
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By GlobalDataThe mineral reserves are estimated at 245 million tonnes (mt) with 571 million pounds (mlb) of molybdenum metal, ideal for European high-performance steel products due to its low impurity levels.
Greenland Resources executive chairman of the board Ruben Shiffman said: “We sincerely thank the Government of Greenland. Our team has a good track record from previous mining projects on sustainable mining and providing wealth and prosperity to communities.
“Malmbjerg has the potential to generate close to $1bn in taxes during the 20-year life of the mine, can create critical infrastructure on the east coast and provide people with new life skills. The project comes at a time of deglobalisation and significant growth in defence expenditures. It will be able to supply around 25% of all EU molybdenum needs and 100% of defence applications.”
A definitive feasibility study for the project was completed by Tetra Tech in February 2022.
The project’s feasibility study highlights include a 20-year mine life with an average annual production of 32.8mlb of molybdenum metal in the first ten years, and an average life-of-mine production of 24.1mlb.
In February, Greenland Resources secured a ten-year offtake agreement with Outokumpu valued at approximately $160m (€138.94m) to supply 8mlb of molybdenum annually.
This partnership supports Greenland Resources’ long-term strategy and facilitates capex financing, with Outokumpu assisting in the arrangements.
