Greenland Resources signs moly supply MOU with German steel giant
Toronto-based Greenland Resources Inc. [MOLY-TSX, FSE] has signed a memorandum of understanding (MOU) for a long-term supply arrangement with German steel products company GMH Gruppe SE & Co KG (GMH).
The MOU sets the path for a long-term supply agreement covering ferro-molybdenum, molybdenum-oxide and briquettes produced from molybdenum extracted in Greenland by Greenland Resources that will be refined in Belgium.
Under the MOU, GMH will be able to ensure a stable and responsibly sourced long term secured molybdenum supply with high sustainability standards and low scope 1&2 emissions from an EU associate country.
On Tuesday, Greenland shares eased 5.12% or 10 cents to $1.85. The shares trade in a 52-week range of $2.07 and $1.37.
Greenland Resources is a Canadian company with a focus on the development of its 100%-owned Malmbjerg molybdenum project located in central east Greenland. The project also has magnesium as a by-product, a market dominated 89% by China.
Malmbjerg 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. Production over a 20-year mine life is estimated at 24.1 million pounds per year.
A NI 43-101 compliant definitive feasibility study completed in 2022 envisages an US$820 million capex and a levered after-tax IRR of 33.8%, and payback of 2.4 years, using a US$18 per pound molybdenum price.
Proven and probable reserves stand at 245 million tonnes at 0.176% MoS2, or 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., approximately 25% of EU total yearly consumption and 100% of EU defence needs.
The company is aiming to incorporate magnesium into the economics of the feasibility study.
On June 19, 2025, the company was awarded the exploitation license for molybdenum and magnesium.
Commenting on the MOU, Tim Hodgson, Canada’s Minister of Energy and Natural Resources said he traveled to Berlin last year to sign a Declaration of Intent with Germany to strengthen cooperation on critical minerals.
“Following that in October 2025, on the margins of the G7 Energy and Environment Ministers’ Meeting in Toronto, the Government of Canada issued a communique where the Canadian mining company Greenland Resources was highlighted for its contribution to the Italian steel sector – now, I am pleased to see Greenland Resources moving forward and also contributing to the Germany steel industry, another important G7 ally.”
GMH is a pioneer in sustainable steel production using electric arc furnaces based on scrap recycling thus generating fewer C02 emissions than conventionally produced steel.
GMH supplies customized steel solutions out of more than 15 production sites mostly located in Germany. Key markets for these products are automotive, energy, raw materials, aerospace, defense, agriculture, construction machinery, tooling, mechanical engineering and transportation sectors.