Greenland Resources gets $5M Canadian funding for Malmbjerg molybdenum mine

Greenland Resources (TSX: MOLY) announced Monday the Canadian government has agreed to contribute C$7 million (approximately $5 million) towards the development of its flagship Malmbjerg project.

With the funding, provided as part of Natural Resources Canada’s Critical Minerals Research, Development and Demonstration program, Canada becomes the first G7 nation to invest in mining in Greenland, the company said in a news release.

Greenland Resources is developing the open-pit Malmbjerg mine in east Greenland, which holds deposits of molybdenum, classified as a critical mineral by both the European Union and the US.

China, which accounts for around 40% of global molybdenum production, imposed export controls on the metal ⁠in early 2025, heightening Western concern about supply security.

In February, Greenland Resources secured exclusive rights to an approximate 1,147 km2 land package surrounding the company’s existing exploitation license for molybdenum and magnesium in the Semersooq region.

The company’s metallurgical program will evaluate, using Canadian expertise, the feasibility of processing primary molybdenum using saline and fresh water for flotation, as well as assess the potential recovery of magnesium and rare earth element as by-products contained within the Malmbjerg ore body and saline water.

The program will run until March 2028, it said.

Last year, Greenland Resources inked a long-term offtake agreement with Finland’s Outokumpu, the largest producer of stainless steel in Europe, for the supply of molybdenum oxide produced at Malmbjerg.

Once built, the open-pit mine is expected to produce 32.8 million lb. of molybdenum metal annually, which equals roughly a quarter of the EU’s yearly consumption, over its first 10 years, a 2022 feasibility study showed. The total mine life is projected at 20 years.