ERMA and Greenland Resources Mark Successful Partnership Advancing Responsible Mining in Europe

26 September 2023

The European Raw Materials Alliance (ERMA) and Greenland Resources have underscored their successful partnership on the Malmbjerg molybdenum project, showcasing responsible mining for a secure and sustainable European raw materials value chain, in alignment with the Green Deal.

The Malmbjerg molybdenum project stands as an exemplar of responsible mining practices, adhering to high Environmental, Social, and Governance (ESG) standards. It will provide high-quality molybdenum to satisfy a substantial portion of Europe's demand. Greenland, despite being among the world's largest molybdenum producers, leads in education and healthcare spending and boasts low poverty rates.

Collaboration with ERMA has enabled Greenland Resources to establish offtake agreements with six major EU metallurgical steel and chemical firms, along with securing letters of intent for capex financing from AAA credit-rated financial institutions. ERMA also played a pivotal role in securing documentation with major European and Canadian mining equipment suppliers.

Molybdenum plays a fundamental role in manufacturing clean renewable energy technologies and mining equipment, making it vital for Europe's Green Transition. Currently, China produces about 45% of the world's molybdenum, while the EU is its second-largest global user without any domestic production. Greenland Resources will supply approximately 25% of Europe's total molybdenum demand for over two decades, offering one of the highest-grade and cleanest molybdenum deposits globally.

As global demand for molybdenum continues to rise, its prices have surged. The Malmbjerg project is positioned to meet this demand with its high-quality ore and ESG-compliant mining practices.

Greenland's Minister of Finance, Minerals, Justice, and Gender Equality, Naaja H Nathanielsen, emphasized the country's commitment to responsible mining practices that prioritize the well-being of local communities while maintaining a competitive advantage. The Malmbjerg project serves as a model for responsible mining, fostering growth and job creation in the region.

Moreover, Greenland Resources has expanded its support to the nearest community to the Malmbjerg project, enhancing financial support, mining training, internet infrastructure, and culture and education initiatives. An MOU with the Nuna Group of Companies, a Canadian Inuit-owned civil construction firm, strengthens cooperation and training between Canadian and Greenlandic Inuit communities.

Bernd Schäfer, CEO and Managing Director of EIT RawMaterials, praised the partnership as a win-win scenario, developing multi-country value chains for essential raw materials. He highlighted the commitment to seeking global partners for responsible raw materials value chains.

Dr. Ruben Shiffman, Executive Chairman of Greenland Resources, emphasized ERMA's instrumental support in the project's success. The collaboration has resulted in capex finance support from financial institutions, successful off-take agreements with prominent European steel and chemical companies, and agreements with leading mining equipment suppliers, with significant portions of capex and equipment expenditure expected from EU and Canadian sources.