Greenland Resources Signs MOU With Scandinavian Steel AB for Molybdenum Supply
24 January 2023
Greenland Resources Inc., is pleased to announce that it signed a non-binding memorandum of understanding (“MOU”) for long term molybdenum supply with the Swedish company Scandinavian Steel AB, a leading distributor of ferrous and non-ferrous metals, pig iron and alloys to the steel, foundry and chemical industry on a worldwide basis.
The MOU sets the path for a supply agreement of Molybdenite concentrate as well as secondary products like Ferromolybdenum and Molybdenum Oxide. In order to diversify and maximize molybdenum sales price, the Company marketing strategy targets direct sales to end users, arrangements with roasters to meet downstream end user products specifications, and sales to distributors that can be of strategic importance, with a strong focus on the European Union metallurgical, chemical, and industrial markets.
Andreas Keller, Vice-President, Scandinavian Steel, stated: “There is strong demand for molybdenum and structural issues in future supply; we are very excited to be involved in this upcoming primary molybdenum mine located in an Associate EU country that will supply very clean molybdenum with high ESG standards for decades to come”
Dr. Ruben Shiffman, Chairman Greenland Resources, commented: “Northern Europe represents a significant percentage of the molybdenum consumption in the EU, a region which is the second largest molybdenum user worldwide and has no production of its own. Scandinavian Steel has a strong track record and will help us to diversify sales and strengthen relationships in the region. Excluding China, around 10% of global molybdenum supply comes from primary molybdenum mines. Primary molybdenum is clean, is higher grade, meets all industry standards, and has a more environmentally friendly processing. Malmbjerg has the potential to be 50% of this global primary supply.”