Greenland Resources, Hempel enter MOU for Mo supply

Executive Summary

• Greenland Resources Inc. has signed a Memorandum of Understanding (MOU) with Hempel Metallurgical GmbH to establish a long-term supply of molybdenum to the German steel industry.
• The agreement positions Greenland Resources to become the largest worldwide molybdenum supplier to Germany, leveraging its Malmbjerg project's high-quality, low-emission concentrate.
• The MOU outlines a path toward direct offtake agreements with German steel companies, focusing on molybdenite concentrate and secondary products like ferromolybdenum and molybdenum oxide.

Key Details

• Counterparty: Hempel Metallurgical GmbH, a Dusseldorf-based company and leading supplier of molybdenum to the German steel industry.
• Agreement Type: Memorandum of Understanding (MOU) for long-term supply.
• Products Covered: Molybdenite concentrate, ferromolybdenum, and molybdenum oxide.
• Supply Chain Logistics: Supply will focus on high-quality, low-emission molybdenum from Greenland, with roasting taking place in Belgium.
• Market Context:
  • Germany was the largest molybdenum user in the EU in 2024, consuming 16.3 million pounds.
  • The EU is the second-largest user of molybdenum globally, with no domestic molybdenum extraction.
  • Primary molybdenum production is dominated by China (87%) and the United States (13%).
• Strategic Importance:
  • The Malmbjerg project's primary molybdenum is ideal for EU defense and high-performance steel applications due to low deleterious elements and long-term security of supply.
  • Over 80% of metallic materials for defense applications require molybdenum alloying.
  • Germany plans to increase defense expenditures from 1.5% to around 5% of GDP.
• Project Fundamentals (Malmbjerg):
  • 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 one to 10 (approx. 25% of EU total yearly consumption).
  • Feasibility Study: NI 43-101 definitive feasibility study completed by Tetra Tech in 2022.
  • Economics: $820 million (U.S.) capital expenditures, levered after-tax IRR of 33.8%, and payback of 2.4 years, based on a $18 (U.S.) per pound molybdenum price.
  • License: Exploitation license for molybdenum and magnesium awarded on June 19, 2025.
  • Byproduct: Magnesium extraction from saline water is being explored; the molybdenum concentrate also contains a magnesium component.

Notable Quotes

• "Based on Greenland Resources' National Instrument 43-101 feasibility study and the previously announced offtake and roasting agreements, the company is positioned to become the largest worldwide molybdenum supplier to Germany."
• "The company expects further announcements related to direct offtake agreements with German steel companies."