Greenland Resources Inc. announced that on the twenty year anniversary of Molymet Belgium and in the presence of Belgium Prime Minister Mr. Alexander De Croo and Mr. John Graell, CEO Molymet, the Company has signed a memorandum of understanding with binding terms (“MOU/Terms”) for long term sales and toll conversion of molybdenum concentrate with Molibdenos y Metales S.A (“Molymet”).
Molymet is an international investment grade rated company with the world’s largest molybdenum processing capacity and sales with production facilities in Germany, Belgium, Mexico and Chile and sales offices in nine different countries.
The MOU / Terms set the path for the sales and tolling conversion of a significant part of the long-term production of the Malmbjerg Molybdenum Project concentrate, and contains both binding and non-binding clauses as well as detailed pro-forma terms and conditions. This MOU / Terms will give the Company the option to both sell its molybdenite concentrate to Molymet, and also to toll process only, and sell secondary products like ferromolybdenum, molybdenum oxide and ammonium dimolybdate directly to various steel and chemical companies. The Company has seen strong interest from large EU investment grade metallurgical steel and chemical companies to source molybdenum from Greenland, and has already signed documentation with many of them.
The Company thanks Molymet, the Prime Minister and EIT RawMaterials / ERMA who was also was represented at the event. The event had coverage in various national newspapers and photos can be found in Greenland Resources website gallery.
Molymet is an international Chilean headquartered company with the largest molybdenum and rhenium processing capacity in the world. Having production facilities and sales offices in nine different countries allows Molymet to offer services and products on every continent. The company adheres to high environmental standards, supported by its environmental management system with ISO 14001, 45001 and 9001 certifications.
About Greenland Resources Inc.
Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focused on the development of its 100% owned world-class Climax type pure molybdenum deposit located in central east Greenland. The Malmbjerg molybdenum project is an open pit operation with an environmentally friendly mine design focused on reduced water usage, low aquatic disturbance and low footprint due to modularized infrastructure. The Malmbjerg project benefits from a NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022, with Proven and Probable Reserves of 245 million tonnes at 0.176% MoS2, for 571 million pounds of contained molybdenum metal. As the high-grade molybdenum is mined for the first half of the mine life, the average annual production for years one to ten is 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS2. The project had a previous exploitation license granted in 2009.
About Molybdenum and the European Union
Molybdenum is a critical metal used mainly in steel and chemicals that is needed in all technologies in the upcoming green energy transition. When added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance. Based on data from the International Molybdenum Association and the European Commission Steel Report, the world produced around 576 million pounds of molybdenum in 2021 where the European Union (“EU”) as the second largest steel producer in the world used approximately 25% of global molybdenum supply and has no domestic molybdenum production.
To a greater degree, the EU steel dependent industries like the automotive, construction, and engineering, represent around 18% of the EU’s ≈ US$16 trillion GDP. Greenland Resources strategically located Malmbjerg molybdenum project has the potential to supply in and for the EU approximately 24 million pounds per year, of environmentally friendly molybdenum from a responsible EU Associate country, for decades to come. The high quality of the Malmbjerg ore, having low impurity content in phosphorus, tin, antimony, and arsenic, makes it an ideal source of molybdenum for the high-performance steel industry lead worldwide by Europe, specifically the Scandinavian countries and Germany.