Increased interest in purchasing raw materials from Malmbjerget

Canadian raw materials company Greenland Resources has signed another letter of intent for the long-term supply of molybdenum to a German company.

This time it is with Rogesa Roheisen-und Rohstoffgesellschaft, a subsidiary of two of the leading German steel producers Dillinger and Saarstahl, which produces steel plates for machinery, pipelines and wind power as well as wire rod and steel for the automotive and construction industries.

Letters of intent and agreements

Back in January, Greenland Resources announced a similar letter of intent with another German steel producer; GMH Gruppe.

The aim of the letters of intent is to pave the way for a long-term supply agreement for ferromolybdenum and molybdenum oxide, which hardens steel and makes it more resistant.

The company has also entered into some binding customer agreements, for example with Finnish Outokumpu for long-term supply of molybdenum oxide. Outokumpu is the largest producer of stainless steel in Europe and the second largest producer in America.

Steel producers in Germany

According to the director of Greenland Resources, Ruben Shiffman, the company is currently also negotiating with two additional steel producers in Germany.

“We have a dominant position in Germany, which is among the largest molybdenum buyers in the EU. And the EU is the second largest buyer of molybdenum in the world,” says Ruben Shiffman, highlighting the raw material quality of Malmbjerget.

– It is very pure, and therefore has a very high quality. It can meet all the standards that the European steel industry and defense industry have for molybdenum.

According to Greenland Resources, the plan is to crush the ore at processing plants in Greenland and develop the molybdenum concentrate, which will then be shipped to the company MolyMet in Belgium, which will further process it into a molybdenum product that can be distributed further to the steel and chemical companies that need molybdenum for hardening their products.

Supply chain in Europe

This means that the supply chain of raw materials from Malmbjerget will remain in Europe, says Ruben Shiffman, who estimates that it will contribute to jobs, income, and the development of critical infrastructure in Greenland.

– The project could increase Greenland's gross domestic product by over 25 percent, and create up to 500 jobs during the construction phase and 250 jobs during operation. It will also contribute to tax revenues and the development of the east coast's infrastructure.

Canadian contribution

Recently, the Canadian government announced that they will contribute a grant of approximately 33 million kroner to Greenland Resources' project, which according to director Ruben Shiffman can help attract other investments to the project, which is needed.

– Support from governments like the Canadian one is crucial for us to be able to attract additional investments to the project, says Ruben Shiffman.