Greenland Resources signs eight-year offtake with SSAB

Executive Summary

• Greenland Resources Inc. has signed a binding eight-year offtake agreement with SSAB, a major Nordic and U.S.-based steel producer, to supply high-quality, low-carbon ferro-molybdenum.
• The agreement establishes a price floor and ceiling, securing a stable, long-term primary molybdenum supply for SSAB while providing Greenland Resources with a guaranteed market for its Malmbjerg project.
• The Malmbjerg project, a 100%-owned molybdenum deposit in Greenland, is recognized as a priority EU project under the RESourceEU initiative, highlighting its strategic importance for EU defense and green energy sectors.

Key Details

• Agreement Terms: Binding eight-year offtake agreement.
• Counterparty: SSAB (Nordic and U.S.-based steel producer, largest heavy plate producer in the U.S., annual steel production capacity of 8.8 million tonnes).
• Product: High-quality, low-carbon-emission ferro-molybdenum extracted in Greenland and refined in Belgium.
• Pricing Structure: Established price floor and price ceiling.
• Sustainability: Supply ensures low Scope 1 and Scope 2 emissions; responsibly sourced from an EU associate country.
• Project Status: Malmbjerg project is a 100%-owned Climax-type primary molybdenum deposit in central east Greenland.
• Feasibility Study: Definitive feasibility study completed by Tetra Tech in 2022.
  • Capex: $820 million (U.S.).
  • Levered after-tax IRR: 33.8%.
  • Payback period: 2.4 years.
  • Base case molybdenum price: $18 (U.S.) per pound.
• Reserves: Proven and probable reserves of 245 million tonnes at 0.176% MoS2, containing 571 million pounds of contained molybdenum metal.
• Production Profile: Average annual production of 32.8 million pounds of contained molybdenum metal per year for years 1 to 10, at an average grade of 0.23% MoS2.
• Market Impact: Projected to supply approximately 25% of EU total yearly molybdenum consumption and 100% of EU defense needs.
• Byproducts: Magnesium (extracted from saline water using innovative technologies) and rare earth elements are being incorporated into the project economics.
• Regulatory/Licensing: Exploitation licence for molybdenum and magnesium awarded on June 19, 2025.
• Strategic Recognition: Project mentioned as a priority EU project in the European Commission's RESourceEU presentation on Dec. 3, 2025; supported by the European Raw Materials Alliance (ERMA).
• EU Context: EU is the second-largest molybdenum user (122 million pounds/year, 19% of global demand); currently has no molybdenum extraction; relies on China (87%) and U.S. (13%).

Notable Quotes

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