Greenland Resources Signs Agreement with German Bank for East Greenland Project
The Canadian firm Greenland Resources has secured a letter of intent with a prominent German bank, paving the way for financing including guarantees, loans, and insurance for its ambitious project to extract molybdenum and magnesium from Malmbjerget in East Greenland, according to a recent press release.
Focused on European Steel Exports
The German bank brings substantial experience in coordinating European project financing—insight that’s crucial as Greenland Resources gears up for exports primarily aimed at Germany, the largest EU consumer of molybdenum. This move aligns with Germany’s anticipated surge in defense spending over the next decade.
Interestingly, over 80 percent of components used in defense systems, including missiles, contain molybdenum. While it has yet to be classified among critical minerals, the company has already inked a 10-year marketing agreement with several major European steel producers.
Photographer: Oscar Scott Carl
In June, Greenland Resources was granted an extraction license for raw materials by Naaja H. Nathanielsen, the Minister for Raw Materials. However, the company, led by director Ruben Shiffman, must still complete environmental and social impact assessments before moving forward.
Environmental Assessments and Community Consultations
In June of this year, Greenland Resources was awarded a 30-year extraction license, yet the road ahead requires the completion of crucial environmental and social impact reports (EIA and VSB). Once these assessments are finalized, an eight-week consultation period will commence, which is expected to include meetings in Ittoqqortoormiit, Tasiilaq, and Nuuk by late 2025 or early 2026. Both the company and the Department for Business and Raw Materials have confirmed this timeline.
A preliminary profitability study estimates that establishing the necessary mining infrastructure—including processing facilities, a gravel runway, roads, and a shipping port—will cost approximately DKK 4 billion. Looking ahead, Greenland Resources anticipates that full-scale mining activities could commence by 2029.