The EU-backed Malmbjerg project of Greenland Resources received a 30-year mining permit from Greenland which enables extensive molybdenum extraction for defense and aerospace and energy industries.
The eastern Greenland open-pit mine will generate 32.8 million pounds of concentrated molybdenum annually which would fulfill a quarter of European market requirements according to the company. The project receives backing from the European Raw Material Alliance to decrease European dependence on Chinese mineral imports.
The decision occurs at a time when trade tensions between nations continue to rise. The Chinese government has placed export restrictions on multiple critical metals because of U.S. tariffs which make up about 40% of global molybdenum production.
The mining industry of Greenland has experienced an unusual speedup because of regulatory and funding challenges that previously limited its development. The island gained international attention when President Donald Trump revived discussions about its natural resource potential during the previous year.
The European steel companies Outokumpu and Italian steel producer Cogne Acciai Speciali have already secured supply agreements with Greenland Resources. The project serves as a strategic advantage for Greenland and the EU because it helps them establish secure supply chains for green and defense technologies while critical minerals demand continues to increase.
