Greenland Resources Inc. (NEO:MOLY/FSE:M0LY) (“Greenland Resources” or the “Company”) is pleased to note the press release by the European Raw Materials Alliance (“ERMA”), reproduced and attached below. The Company is grateful to receive support from a body of the European Union whose main objectives are to reduce European dependency on strategic and critical raw materials from outside Europe and promote environmental, social and governance standards. Greenland Resources looks forward to working with ERMA as we move the Malmbjerg Molybdenum Project to commercial production.
BERLIN, 13 June – The European Raw Materials Alliance (ERMA) is pleased to announce that it will support Greenland Resources Inc. (NEO:MOLY/FSE:M0LY) in securing finance for the Malmbjerg Molybdenum Project and strengthening relationships with downstream molybdenum users in the EU industry ecosystem. Currently, Europe is the second-largest global molybdenum user but has no production of its own. The Malmbjerg Molybdenum Deposit will change that.
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In the coming decades, the Green Energy transition will significantly increase the global demand for molybdenum, a critical material in the manufacture of clean renewable energy generation and storage technologies such as wind, geothermal, solar, nuclear, and hydro. The project is ideally suited for ERMA, whose main objectives are to reduce European dependency on strategic and critical raw materials from outside Europe and promote environmental, social and governance (ESG) standards.
Bernd Schäfer, CEO and Managing Director of EIT RawMaterials, which manages ERMA commented: “The Russian invasion of Ukraine has increased the urgency for Europe to transit to green energy. We need molybdenum that is produced to the highest of ESG standards possible to make that happen. Today we rely fully on external supply. We need reliable European production to guarantee the safety of our supply and the sustainability of our future.”
Located in east Greenland, a low-risk, responsible EU associate country, the Malmbjerg project has the potential to supply 23% of Europe’s total molybdenum demand for 20 years. Molybdenum is an important alloying element for steel production, increasing its corrosion resistance and high-temperature strength. This makes it a critical material for the steel-dependent industries in the EU, which represent close to 18% of the bloc’s GDP. Because of the few deleterious elements in the Malmbjerg ore body, it is an ideal source of clean molybdenum for the high-performance steel industry, which is led worldwide by Europe, specifically by Germany and the Scandinavian countries.
Dr. Ruben Shiffman, Executive Chairman of Greenland Resources, commented: “European steelmakers are world leaders in the production of high-performance steels, which enhance efficiency in power generation, transport, mobility, and construction. Stronger steel means lower product weight, less raw material consumption, less waste, and lower cost. The unique, high quality of the Malmbjerg ore, with low impurity content in phosphorus, tin, antimony, and arsenic, is crucial for the production of high-performance steel, the future of steel.”
The Malmbjerg project will secure a preferred supply chain option for the EU while prioritising the environment. The operation is focused on reducing its environmental footprint every step of the way, from mine design, processing, and shipping, to reclamation.
Dr. Shiffman said: “Malmbjerg has the potential to become the most environmentally friendly source of sustainable molybdenum in the world. The company’s unique mine design emphasises environmental protection with a low footprint due to modularised infrastructure; an aerial rope conveyor that produces no CO2 and generates its own power through regenerative braking; the use of recycled saltwater as process water means no pressure on freshwater supply, and the low aquatic disturbance by shipping concentrate to Europe up to three months a year.”
The project will also add important economic and social contributions to Greenland, with the potential to generate LOM corporate taxes of US$800 million (€750 million) as per the company’s NI 43-101 Definitive Feasibility Study recently published, as well as creating job security for local residents.
Massimo Gasparon, Director of ERMA said: “In terms of social impact, the project is expected to contribute very positively to the development of a remote region of east Greenland, thus opening opportunities for further activities. The project can significantly reduce unemployment in Greenland and help people obtain new life skills. The company has an excellent track record in social responsibility, having supported local communities and the development of local facilities and infrastructures.”
Source: PRNewswire