Greenland grants 30-year permit to moly mine

Greenland Resources (Cboe CA: MOLY; FSE: M0LY) has secured a 30-year permit for its Malmbjerg molybdenum project, a major development backed by the European Union.

The open-pit mine is expected to supply roughly a quarter of the EU’s annual molybdenum demand over its first decade of operation, producing an average of 32.8 million lb. of the metal each year.

Shares in Greenland Resources gained nearly a third to 88¢ apiece on the U.S. over the counter market on Friday. 

Molybdenum, a silvery-white element used to strengthen steel and improve heat and corrosion resistance, is critical to sectors such as aerospace, energy and defence. China, the dominant global supplier, recently introduced export restrictions on the metal, in response to U.S. President Donald Trump’s tariff on Chinese goods.

The Malmbjerg project is supported by the European Raw Materials Alliance (ERMA) and has already attracted interest from key industrial players. Earlier this year, Greenland Resources signed off-take agreements with Finland’s Outokumpu and Italy’s Cogne Acciai Speciali.

 

Greenland’s Minister for Business, Mineral Resources, Energy, Justice and Gender Equality, Naaja H. Nathanielsen, called the project a step forward for the territory’s economic autonomy.

“The progress we are experiencing in the mineral resources sector is good news for all of us,” she said.  

Nathanielsen noted that projects like Malmbjerg contribute to the Greenland Government’s goal of a self-sustaining economy through job creation, local business opportunities and other direct benefits for communities.”

According to the project’s feasibility study, Malmbjerg could generate nearly $1 billion in tax revenue over its 20-year operational life.

Rising interest 

The Malmbjerg approval comes amid a broader uptick in Greenland’s mining activity. Last month, authorities granted an exploitation licence to a Danish-French mining group, and earlier this month, the EU included a Greenland graphite initiative among 13 new critical material projects.

These moves followed the bloc’s March endorsement of 47 raw material projects within EU borders.

Last week, the U.S. Export-Import Bank (EXIM) said Critical Metals Corp. (NASDAQ: CRML), which is developing the Tanbreez rare earth project in Greenland, had met initial requirements to apply for a $120 million loan.

Interest in Greenland’s mineral potential has grown since Donald Trump floated the idea of purchasing the Arctic island, a semi-autonomous territory of Denmark that holds as many as 40 items on the US and EU critical minerals list.