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Greenland Resources Signs a Letter of Intent With Outokumpu to Strengthen Their Future Supply Chain of Low-Emission High-Quality Molybdenum

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Greenland Resources announced the Company has signed a letter of intent (“LOI”) with Outokumpu Europe Oy (“Outokumpu”) for the supply of a significant amount of molybdenum from the Malmbjerg molybdenum project. Outokumpu is a major global stainless steel producer and one of the largest molybdenum consumers worldwide and has a long history as a mining company before focusing on stainless steel. Greenland Resources sees a very good fit on Outokumpu and looks forward to continuing negotiations on further detailed cooperation. A joint press release from Outokumpu can be found in their website at www.outokumpu.com.

Outokumpu, the global leader in sustainable stainless steel, has been exploring opportunities to secure sustainable molybdenum supplies from western suppliers – as a part of its long-term strategy for value-chain integration. Molybdenum is a critical and strategically important raw material for Outokumpu’s stainless steel production. Greenland Resources has therefore signed an LOI with Outokumpu, with the goal of providing molybdenum oxide and carbon-free briquettes from the Project.

Greenland Resources is developing one of the highest grade molybdenum deposits in the world with an ore body that contains very few deleterious elements, in a high ESG standard jurisdiction part of Denmark, some 2,300 km west of Helsinki. The Project is supported by European Institute of Innovation and Technology (EIT) RawMaterials and European Raw Material Alliance (ERMA), a body of the European Union, as per their press release of September 23, 2023. The Project is an open-pit molybdenum mine that could supply around 25% of the European molybdenum demand. Europe is the second largest molybdenum user worldwide and has no production of its own. The Project is planned to have a low footprint due to modularized infrastructure, low CO2 emissions, low aquatic disturbance and clean contained tailings. The transport of 35,000 tonnes of ore per day uses a gravity based aerial rope conveyor that requires no energy and therefore generates no carbon emissions and generates electricity from braking. Further information on the environmentally friendly mine design of the Project can be viewed in this video on the project.

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“The carbon footprint of Outokumpu’s stainless steel is already the lowest in the industry. It is a competitive advantage for us, and we want to drive green transition and further decarbonize our product – and the whole industry. Cooperation within our value chain allows us to reduce our supply chain emissions, and at the same time we also want to ensure access to the most sustainable molybdenum suppliers like the Canadian company Greenland Resources. Long-term cooperation with Greenland Resources could also provide us an access to a stable supply of molybdenum and protect us from volatile market pricing and supply. We are excited about the collaboration and are looking forward to continue the good dialogue aiming at a binding long-term cooperation,” says Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.

“We plan to extract quality molybdenum with high ESG standards from Greenland, a jurisdiction that is not only part of the kingdom of Denmark but has very similar living standards as Finland. The Malmbjerg primary molybdenum deposit is one of the richest and cleanest of its kind. The resulting ferroalloys are perfectly suited to be used in high quality steels produced by Outokumpu. Outokumpu will be able to source a long-term reliable supply of molybdenum oxide and carbon-free briquettes, know from where every single pound of molybdenum is being extracted, and can follow the high ESG standards over the 20-year mine life. Adding to EU circularity, the extraction will be done in an associate EU country, the processing of the concentrate and steel production will also be done in the EU; and a significant part of the mining equipment, team and funding will be EU sourced,” says Greenland Resources Chairman Dr Ruben Shiffman.


Source: Business Wire

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