Outokumpu signs a letter of intent with Greenland Resources Inc. to strengthen the future supply chain of low-emission high-quality molybdenum

7 October 2023

Outokumpu, a global leader in sustainable stainless steel production, is actively pursuing sustainable sources of molybdenum to support its long-term strategy for value-chain integration. Molybdenum is a crucial raw material for Outokumpu's stainless steel manufacturing. As part of this effort, Outokumpu has entered into a letter of intent with Greenland Resources Inc., a Canadian mining company that is developing the Malmbjerg molybdenum project in eastern Greenland. The letter of intent signals Outokumpu's interest in becoming a future customer for Greenland Resources as the mining project progresses through the definitive feasibility study and capex funding negotiations. This letter of intent sets the stage for further detailed cooperation between the two companies.

The Malmbjerg molybdenum deposit in eastern Greenland stands out due to its high molybdenum grade and minimal environmental impact, making it one of the cleanest deposits of its kind. Greenland Resources is developing this world-class molybdenum deposit, characterized by its low levels of deleterious elements, in a region governed by high environmental, social, and governance (ESG) standards as part of Denmark.

The project has garnered support from prominent bodies, including the European Institute of Innovation and Technology (EIT) RawMaterials and the European Raw Material Alliance (ERMA), an entity of the European Union. According to their press release dated September 23, 2023, the Malmbjerg molybdenum project has the potential to supply approximately 25% of Europe's molybdenum demand. Notably, Europe is the second-largest global consumer of molybdenum and lacks domestic production.

The Malmbjerg molybdenum project boasts a low environmental footprint thanks to modular infrastructure, low carbon dioxide (CO2) emissions, minimal aquatic disruption, and environmentally-friendly tailings management. The project transports 35,000 tonnes of ore daily using a gravity-based aerial rope conveyor, which requires no energy and, therefore, produces zero carbon emissions while generating electricity during braking.

Marc-Simon Schaar, Chief Procurement Officer at Outokumpu, emphasized the company's commitment to reducing its supply chain emissions and sourcing sustainable materials, such as molybdenum from Greenland Resources. This collaboration not only aligns with Outokumpu's efforts to minimize the carbon footprint of its stainless steel products but also ensures access to a stable supply of molybdenum while safeguarding against volatile market prices and supply disruptions.

Greenland Resources Chairman Dr. Ruben Shiffman highlighted the project's focus on extracting high-quality molybdenum with strict ESG standards from Greenland, a jurisdiction with similar living standards to Finland. The Malmbjerg deposit is known for its exceptional richness and environmental cleanliness. This molybdenum is well-suited for use in high-quality steels produced by Outokumpu. The partnership allows Outokumpu to secure a reliable, long-term supply of molybdenum oxide and carbon-free briquettes while adhering to high ESG standards throughout the 20-year mine life. This initiative also contributes to EU circularity, as extraction, processing, and steel production are all conducted within the European Union, supporting local sourcing and economic benefits.

The collaboration between Outokumpu and Greenland Resources underscores their shared commitment to sustainable practices and responsible sourcing in the stainless steel industry.


Source: prnewswire.com