The Canadian company Greenland Resources, which holds the license for Malmbjerget in East Greenland, signed a 30-year exploitation permit for molybdenum and magnesium on June 19. Before the company can establish a mine, however, they must have several reports approved.

In 2018, the Canadian company Greenland Resources took over the license at Malmbjerget in East Greenland, and they have since worked towards a exploitation permit for molybdenum and magnesium, which they received on Wednesday last week at a ceremony in Nuuk.

In 2018, took over

Public hearing

In 2018, the Canadian company Greenland Resources took over the license at Malmbjerget in East Greenland, and they have since worked towards a exploitation permit for molybdenum and magnesium, which they received on Wednesday last week at a ceremony in Nuuk.

In 2018, took overAnnouncement

Public hearing

The company is currently completing their environmental impact assessment (EIA) and social sustainability assessment (SIA).

Efterforskning i Malmbjerget

The 1,750-meter-high Malmbjerg, located 185 km north of Ittoqqortoormiit, was systematically mapped as part of the Werner Bjerge complex by members of the East Greenland expedition back in 1954. The expedition found that the mountain contained large amounts of the element molybdenum, which – if added in small quantities – increases the strength and heat resistance of steel. Molybdenum is used, for example, today in the development of oil pipes, components in aircraft and missiles.

In 1955, the first company, “Nordisk Mineselskab A/S”, came to the area. They carried out further drilling tests and surveys with a view to exporting molybdenum, but world market prices were at that time too low to make it economically viable to establish a mine, processing plant and infrastructure in the area. It was not until the early 2000s that molybdenum prices began to rise, and in 2004, the English company Galahad Gold PLC, through the company International Molydenum PLC, attempted to develop two licenses at Malmbjerget based on an extensive drilling program that led to an approved resource estimate of approximately 200 million tonnes of 0.2 percent molybdenum sulphide.

In 2007, the Canadian company Quadra Mining acquired a majority stake in International Molydenum PLC, and conducted a feasibility study that concluded that it would cost 4 billion kroner to establish a mine, including a processing plant, gravel runway, road and shipping port. The company expected a turnover of 500 million dollars (2.5 billion kroner) per year over the mine’s estimated lifespan of 15-20 years. But then molybdenum prices fell again, and Quadra Mining postponed the investment in the mine, which was otherwise scheduled to open in 2012. 

In 2018, Canadian Greenland Resources took over the license for Malmbjerget.

Once these reports are available, they will be put out to an 8-week public hearing, and consultation meetings will be held, which are expected to take place in Ittoqqortoormiit, Tasiilaq and Nuuk at the end of the year or in early 2026. This is confirmed by both the company and the Ministry of Industry and Mineral Resources to Sermitsiaq. Once the EIA and SIA reports have been approved by the Government of Greenland, the company must prepare mining and closure plans. And they have until 31 December 2026 to do so. Only when these have been approved can the company start its mining activities, which will probably not be until 2029 at the earliest. 

Molybdenum strengthens steel 

According to the chairman of the board of Greenland Resources, Canadian Ruben Shiffman, who is married to a Danish woman and therefore lives part of his time in Denmark, the project will be able to supply approximately 25 percent of the EU’s total molybdenum needs.

Molybdenum is used in steel production, where it helps increase the strength and heat resistance of steel. Molybdenum is used, for example, today in the development of oil pipes and in components in aircraft and missiles. According to the company, the project has the potential to generate close to 1 billion US dollars in taxes for Greenland during the mine’s 20-year lifespan. In addition, there is the possibility of building infrastructure on the East Coast and jobs for locals. 

– We expect to start production in about 4 years, when we have finished the construction phase. For that we will need 300-400 employees and when the mine starts up, it will probably be between 500-700 employees, estimates Ruben Shiffman. 

Molybdenum is not on the EU’s list of critical minerals, but according to Naaja H. Nathanielsen, the mineral is important for the steel industry, and Greenland Ressource has already signed a 10-year sales agreement with some of the largest steel companies in Europe. 

– It indicates that there is a need for the product they are bringing, says Naalakkersuisoq for Industry and Raw Materials, says Naaja H. Nathanielsen. 

Change in process

It is relatively new that the companies can obtain their exploitation permit at such an early stage in their exploration, i.e. before the EIA and SIA have been consulted and approved. 

– We have changed the process so that companies now have the opportunity to apply for and be granted an exploitation permit earlier in the process. This is because there was some criticism that the case processing was too slow. The companies need to be able to show potential investors that they have support for their resource from Naalakkersuisut. But it is important for me to say that getting an exploitation permit is not the same as the rest of the road is open. You still have to produce a proper piece of work, including preparing and having approved the EIA, SIA, exploitation plan and closure plan, before you are allowed to go as far as opening a mine, says Naalakkersuisoq for Industry and Raw Materials, Naaja H. Nathanielsen, and points out that the environmental requirements have neither been relaxed nor the companies’ legal position changed as a result of them now receiving a 30-year exploitation permit earlier in the process. 

– These requirements remain unchanged. And we are very aware in Naalakkersuisut that the fine balance between wanting growth and development and at the same time insisting on taking care of the environment is important for both us, the companies and the entire raw materials sector, says Naaja H. Nathanielsen.

In 2018, the Canadian company Greenland Resources took over the license at Malmbjerget in East Greenland, and they have since worked towards a exploitation permit for molybdenum and magnesium, which they received on Wednesday last week at a ceremony in Nuuk.

In 2018, took over

Public hearing

In 2018, the Canadian company Greenland Resources took over the license at Malmbjerget in East Greenland, and they have since worked towards a exploitation permit for molybdenum and magnesium, which they received on Wednesday last week at a ceremony in Nuuk.

In 2018, took overAnnouncement

Public hearing

The company is currently completing their environmental impact assessment (EIA) and social sustainability assessment (SIA).

Efterforskning i Malmbjerget

The 1,750-meter-high Malmbjerg, located 185 km north of Ittoqqortoormiit, was systematically mapped as part of the Werner Bjerge complex by members of the East Greenland expedition back in 1954. The expedition found that the mountain contained large amounts of the element molybdenum, which – if added in small quantities – increases the strength and heat resistance of steel. Molybdenum is used, for example, today in the development of oil pipes, components in aircraft and missiles.

In 1955, the first company, “Nordisk Mineselskab A/S”, came to the area. They carried out further drilling tests and surveys with a view to exporting molybdenum, but world market prices were at that time too low to make it economically viable to establish a mine, processing plant and infrastructure in the area. It was not until the early 2000s that molybdenum prices began to rise, and in 2004, the English company Galahad Gold PLC, through the company International Molydenum PLC, attempted to develop two licenses at Malmbjerget based on an extensive drilling program that led to an approved resource estimate of approximately 200 million tonnes of 0.2 percent molybdenum sulphide.

In 2007, the Canadian company Quadra Mining acquired a majority stake in International Molydenum PLC, and conducted a feasibility study that concluded that it would cost 4 billion kroner to establish a mine, including a processing plant, gravel runway, road and shipping port. The company expected a turnover of 500 million dollars (2.5 billion kroner) per year over the mine’s estimated lifespan of 15-20 years. But then molybdenum prices fell again, and Quadra Mining postponed the investment in the mine, which was otherwise scheduled to open in 2012. 

In 2018, Canadian Greenland Resources took over the license for Malmbjerget.

Once these reports are available, they will be put out to an 8-week public hearing, and consultation meetings will be held, which are expected to take place in Ittoqqortoormiit, Tasiilaq and Nuuk at the end of the year or in early 2026. This is confirmed by both the company and the Ministry of Industry and Mineral Resources to Sermitsiaq. Once the EIA and SIA reports have been approved by the Government of Greenland, the company must prepare mining and closure plans. And they have until 31 December 2026 to do so. Only when these have been approved can the company start its mining activities, which will probably not be until 2029 at the earliest. 

Molybdenum strengthens steel 

According to the chairman of the board of Greenland Resources, Canadian Ruben Shiffman, who is married to a Danish woman and therefore lives part of his time in Denmark, the project will be able to supply approximately 25 percent of the EU’s total molybdenum needs.

Molybdenum is used in steel production, where it helps increase the strength and heat resistance of steel. Molybdenum is used, for example, today in the development of oil pipes and in components in aircraft and missiles. According to the company, the project has the potential to generate close to 1 billion US dollars in taxes for Greenland during the mine’s 20-year lifespan. In addition, there is the possibility of building infrastructure on the East Coast and jobs for locals. 

– We expect to start production in about 4 years, when we have finished the construction phase. For that we will need 300-400 employees and when the mine starts up, it will probably be between 500-700 employees, estimates Ruben Shiffman. 

Molybdenum is not on the EU’s list of critical minerals, but according to Naaja H. Nathanielsen, the mineral is important for the steel industry, and Greenland Ressource has already signed a 10-year sales agreement with some of the largest steel companies in Europe. 

– It indicates that there is a need for the product they are bringing, says Naalakkersuisoq for Industry and Raw Materials, says Naaja H. Nathanielsen. 

Change in process

It is relatively new that the companies can obtain their exploitation permit at such an early stage in their exploration, i.e. before the EIA and SIA have been consulted and approved. 

– We have changed the process so that companies now have the opportunity to apply for and be granted an exploitation permit earlier in the process. This is because there was some criticism that the case processing was too slow. The companies need to be able to show potential investors that they have support for their resource from Naalakkersuisut. But it is important for me to say that getting an exploitation permit is not the same as the rest of the road is open. You still have to produce a proper piece of work, including preparing and having approved the EIA, SIA, exploitation plan and closure plan, before you are allowed to go as far as opening a mine, says Naalakkersuisoq for Industry and Raw Materials, Naaja H. Nathanielsen, and points out that the environmental requirements have neither been relaxed nor the companies’ legal position changed as a result of them now receiving a 30-year exploitation permit earlier in the process. 

– These requirements remain unchanged. And we are very aware in Naalakkersuisut that the fine balance between wanting growth and development and at the same time insisting on taking care of the environment is important for both us, the companies and the entire raw materials sector, says Naaja H. Nathanielsen.