Greenland's Malmbjerg may receive EU financial support

Executive Summary

• Greenland Resources Inc. announced a strategic equity investment from the European Commission under the RESourceEU initiative, aimed at supporting the development of its Malmbjerg molybdenum project in Greenland.
• The company has secured long-term offtake agreements and letters of intent with major European industrial partners and export credit agencies, significantly de-risking the project's commercial and financial viability.
• The project holds an exploitation license for molybdenum and magnesium, with a definitive feasibility study indicating a high internal rate of return and significant potential to meet EU defense and industrial demand.

Key Details

• Strategic Investment: The European Commission, European Investment Bank, and member states are providing financial support for the Malmbjerg project under the RESourceEU plan to secure European supply chains for critical minerals.
• Offtake Agreements:
  • Signed a 10-year "take or pay" offtake agreement with Outokumpu (largest stainless steel company in Europe) for approximately $1.8 billion (U.S.) of molybdenum oxide.
  • Signed letters of intent for long-term supply with steel and chemical companies in Germany, Italy, Belgium, Austria, Sweden, Denmark, and Finland.
  • Signed letters of intent with a roaster and processor in Belgium and Germany.
• Financing Support:
  • Signed high-quality letters of intent with European export credit agencies (EKN, Finnvera, EIFO) and Canadian EDC.
  • These agreements aim to support approximately 70% of the bankable feasibility capital expenditures (capex), estimated at $700 million (U.S.).
• Project Status & Licensing:
  • Granted an exploitation license for molybdenum and magnesium by the Government of Greenland (Naalakkersuisut) in June 2025.
  • Supported by the European Raw Materials Alliance (ERMA).
• Feasibility Study Metrics (Tetra Tech, 2022):
  • Capital Expenditures: $820 million (U.S.).
  • Internal Rate of Return (IRR): 33.8% levered after-tax.
  • Payback Period: 2.4 years.
  • Price Assumption: $18 (U.S.) per pound molybdenum.
  • Reserves: 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 per year of contained molybdenum metal for years 1–10, at an average grade of 0.23% MoS2.
  • Market Impact: Production represents approximately 25% of EU total yearly consumption and 100% of EU defense needs for molybdenum.
• Byproduct Strategy:
  • Project includes magnesium extraction from saline water (approx. 35,000 cubic meters/day, ~900 ppm magnesium) using innovative technologies.
  • Company aims to incorporate magnesium economics into the feasibility study.

Notable Quotes

• Jozef Sikela, European Union's Commissioner for International Partnerships: "This project will provide European industry with stable supplies of molybdenum... With processing taking place inside the EU and long-term offtake agreements secured with European companies, it will create a fully European value chain and significantly reinforce our strategic autonomy."
• Naaja Nathanielsen, Minister of Natural Resources, Business, Trade, Judicial Affairs and Gender Equality, Greenland: "Naalakkersuisut (the government of Greenland) granted Greenland Resources an exploitation licence for molybdenum and magnesium in June, 2025... This is good for the EU and Greenland both, and will help accelerate mining in Greenland for the benefit of our local communities and businesses."
• Dr. Ruben Shiffman, CEO: "Historic day for the EU, and we thank the outstanding team of the EC (DG INTPA and DG GROW) for their consideration in a strategic equity investment."