Greenland's Molybdenum Treasure: Powering Europe's Green Steel Revolution

Greenland Resources Inc., a Canadian public company, is making significant strides in the development of its 100% owned Malmbjerg molybdenum project in central east Greenland. The project has received a letter of intent from the state-owned Swedish Export Credit Agency, EKN, indicating interest in supporting the company with a credit guarantee for offtake agreements. This move aligns with the European Union's sustainability goals and the growing demand for environmentally friendly, high-quality molybdenum to fuel the region's green steel industry.

Unlocking Greenland's Molybdenum Potential for Europe's Green Future

Securing Molybdenum Supply for the EU's Steel Industry

The European Union is the second-largest molybdenum consumer globally, yet it has no domestic molybdenum production. This reliance on imports has made the region vulnerable to supply chain disruptions and price fluctuations. Greenland Resources' Malmbjerg project aims to address this critical gap by providing a reliable and sustainable source of molybdenum for the EU's steel industry.The project's strategic location in Greenland, an EU associate country, offers several advantages. The high-quality, low-impurity molybdenum ore from Malmbjerg is an ideal fit for the high-performance steel industry, which is dominated by European, particularly Scandinavian and German, manufacturers. By extracting, processing, and supplying molybdenum within the EU, Greenland Resources is poised to become a key player in the region's green steel revolution.

Aligning with the EU's Sustainability Goals

The Malmbjerg molybdenum project is designed with sustainability at its core. The open-pit operation features an environmentally friendly mine design that focuses on reduced water usage, low aquatic disturbance, and a small footprint due to modularized infrastructure. This approach aligns with the EU's ambitious sustainability goals and the growing demand for eco-friendly raw materials.Molybdenum is a critical metal that plays a vital role in the green energy transition. When added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance – all essential properties for the development of high-performance, energy-efficient products. By tapping into Greenland's molybdenum resources, the Malmbjerg project can provide a reliable and sustainable supply of this crucial material to support the EU's green initiatives.

Leveraging Greenland's Geopolitical Advantages

Greenland's status as an EU associate country and its close ties with the Kingdom of Sweden, a AAA-rated nation, offer significant geopolitical advantages for the Malmbjerg project. The involvement of the Swedish Export Credit Agency, EKN, not only provides a credit guarantee for offtake agreements but also brings the backing of Sweden's strong financial standing and commitment to sustainable development.This strategic partnership with a European state-owned entity underscores the project's alignment with the EU's priorities and its potential to contribute to the region's long-term economic and environmental goals. By leveraging Greenland's unique position as a resource-rich, like-minded partner, Greenland Resources is poised to become a trusted supplier of molybdenum for the EU's thriving steel industry.

Unlocking the Malmbjerg Project's Potential

The Malmbjerg molybdenum project has a robust technical foundation, as evidenced by the NI 43-101 Definitive Feasibility Study completed in 2022. The study outlines an open-pit operation with an estimated capital expenditure of US$820 million and a levered after-tax internal rate of return of 33.8%, using a molybdenum price of US$18 per pound.The project's Proven and Probable Reserves stand at 245 million tonnes at 0.176% MoS2, containing 571 million pounds of molybdenum metal. During the first ten years of operation, the Malmbjerg project is expected to produce an average of 32.8 million pounds of contained molybdenum metal per year at an average grade of 0.23% MoS2, which would account for approximately 25% of the EU's total yearly molybdenum consumption.The high-grade, low-impurity nature of the Malmbjerg ore makes it an ideal source of molybdenum for the EU's high-performance steel industry, particularly in Scandinavia and Germany. This strategic positioning, combined with the project's robust economics and environmental considerations, positions Greenland Resources as a key player in the EU's quest for a sustainable and secure supply of critical raw materials.

Navigating the Path Forward

As Greenland Resources continues to advance the Malmbjerg project, the company is focused on navigating the regulatory and operational challenges that come with developing a large-scale mining operation in a remote Arctic region. The successful completion of the Social Impact Assessment (SIA) and Environmental Impact Assessment (EIA) will be crucial milestones, ensuring the project's alignment with local community interests and environmental best practices.Additionally, the company's ability to secure the necessary permits and regulatory approvals in a timely manner will be critical to the project's success. Greenland Resources' experienced management team, with a proven track record in the mining industry and capital markets, is well-equipped to navigate these complexities and deliver the Malmbjerg project to fruition.By leveraging its strategic location, technical expertise, and strong partnerships, Greenland Resources is poised to become a reliable and sustainable supplier of molybdenum to the European Union, contributing to the region's green steel revolution and supporting its long-term economic and environmental goals.