Toronto-based Greenland Resources has secured a 30-year permit to develop its Malmbjerg molybdenum project in eastern Greenland.

This development marks a significant step for both Greenland’s mining sector and the EU’s critical materials strategy. The project, backed by the European Raw Materials Alliance (ERMA), is expected to produce an average of 32.8Mlb (~15kt) of molybdenum concentrate annually, enough to supply approximately 25% of the EU’s annual demand during its first decade of operation.

This development comes amid rising geopolitical tensions and shifting critical mineral supply chains. In February, China—responsible for around 45.9% of global molybdenum production—imposed export controls on several metals, including molybdenum-related products such as powders, which have both civilian and defence applications. These measures were introduced in response to US tariffs.

To support project offtake, Greenland Resources signed a ten-year agreement in February with Outokumpu, Europe’s largest stainless steel producer, securing the sale of 3.6kt of molybdenum annually, equivalent to 25% of planned output. This was followed in May by a memorandum of understanding with Italy’s Cogne Acciai Speciali, a company active in the special and long stainless steel sectors.

These agreements highlight efforts to reduce Europe’s reliance on Chinese supply. For the molybdenum market, the project reflects a broader push toward supply diversification. While the Malmbjerg molybdenum project could help ease EU supply pressures if developed on schedule, its global impact may be limited, given China’s dominance. Nonetheless, it underscores Greenland’s growing strategic importance in critical mineral supply chains.