Greenland Resources expands MOU with Molymet

Executive Summary

• Greenland Resources Inc. has expanded its existing Memorandum of Understanding (MOU) with Molymet to include Molymet Germany in Bitterfeld, in addition to the existing Molymet Belgium NV entity in Ghent.
• The amended agreement covers long-term sales and toll conversion of molybdenum concentrate, specifically targeting the production of highly specialized molybdenum metal and powders for consumer goods, electronics, medical equipment, and superalloys.
• The expansion aligns with the strategic importance of molybdenum, which is classified as a high-risk Category 3 critical raw material by the German Mineral Resources Agency (DERA).

Key Details

• Agreement Expansion: The MOU originally signed on May 10, 2023, with binding terms for long-term sales and toll conversion of molybdenum concentrate is now extended to include Molymet Germany (Bitterfeld).
• Counterparties: The agreement involves Greenland Resources Inc., Molymet Belgium NV (Ghent), and the newly added Molymet Germany.
• Product Scope: The agreement covers molybdenum required to produce highly specialized molybdenum metal and powders.
• End-Use Applications: The specialized molybdenum products serve as alloy components in consumer goods, electronics, medical equipment, and superalloys.
• Strategic Context: Molybdenum is allocated to the highest-risk Category 3 on the 2023 criticality list of strategic raw materials by the German Mineral Resources Agency (DERA).
• Project Background (Malmbjerg):
  • Location: Central-east Greenland.
  • Deposit Type: 100%-owned Climax-type primary molybdenum deposit.
  • Feasibility Study: Definitive feasibility study completed by Tetra Tech in 2022.
  • Financials: $820 million (U.S.) capex, levered after-tax IRR of 33.8%, payback of 2.4 years (based on $18/lb Mo price).
  • Reserves: 245 million tonnes at 0.176% MoS2 for 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 to 10 (average grade 0.23% MoS2).
  • Market Share: Approximately 25% of EU total yearly consumption and 100% of EU defence needs.
  • Byproduct: Magnesium extraction from saline water (approx. 35,000 cubic metres/day, ~900 ppm Mg) is being incorporated into the economics.
  • Licensing: Exploitation licence for molybdenum and magnesium awarded on June 19, 2025.
  • Support: Supported by the European Raw Materials Alliance (ERMA).