Greenland approved a crucial mining project on Thursday, June 19, and issued a 30-year mining permit. The project will involve mining the “molybdenum” metal on the island, which is a key metal widely used in aerospace, energy, and defense industries. Due to China’s current export control on molybdenum, the European Union strongly supports this project and sees it as an important step in reducing dependency on Chinese critical minerals.
The Greenland government stated that the permit has been granted to Greenland Resources, listed in Toronto (Greenland Resources, stock code MOLY.NLB). This company has the endorsement of the European Raw Material Alliance and has obtained the mining rights for the Malmbjerg project in eastern Greenland.
Greenland Resources stated that the Malmbjerg mine can produce an average of 32.8 million pounds of molybdenum concentrate per year, theoretically capable of meeting about 25% of the molybdenum demand in the European market. Molybdenum, a silver-white metal, is mainly used to strengthen steel, enhance its heat resistance and corrosion resistance, and is an important material in industries such as defense and clean energy.
According to data from the United States Geological Survey, China accounted for approximately 40% of the global molybdenum production last year. However, China implemented export controls on five metals, including molybdenum, in February this year in response to the U.S. tariff measures. Molybdenum is considered a critical mineral by the European Union and the United States, with President Trump also expressing interest earlier this year in acquiring Greenland.
Mining activities in Greenland have significantly increased in the past month. Last month, the Greenland government issued a mining permit to a Danish-French joint mining group; this month, the EU selected 13 new critical materials projects, including a graphite project in Greenland, aimed at increasing the supply of metals and minerals.
This year, Greenland Resources also signed blanket purchase agreements with Finland’s Outokumpu and Italy’s specialty steel producer Cogne Acciai Speciali.
Additionally, the U.S. government’s export credit agency stated last week that companies developing large rare earth mineral mines in Greenland have preliminarily qualified to apply for a $120 million loan.