In a move set to fortify its strategic raw material supply chain, Outokumpu Corporation, a global leader in sustainable stainless steel production, has announced a ten-year off-take agreement with Canadian mining company Greenland Resources Inc. The agreement, announced on 24 February 2025, underscores Outokumpu’s commitment to decarbonizing its operations and integrating a cost-competitive, sustainable value chain.
Strategic Supply and Economic Impact
Under the terms of the deal, Outokumpu will secure approximately 8 million pounds of molybdenum annually—a figure that represents nearly half of its total annual molybdenum requirements. With an estimated current market value of USD 160 million per year, this long-term commitment is expected to total around USD 1.6 billion over the decade. Molybdenum, a critical component in the production of specialty stainless steel, is vital not only for enhancing the durability of steel but also for supporting advanced materials applications across Europe.
Outokumpu’s broader raw material procurement strategy is robust, with an annual spend of approximately EUR 3 billion, further highlighting the significance of this off-take agreement in securing a stable supply of essential inputs.
The Malmbjerg Project and Sustainability Focus
The molybdenum is sourced from Greenland Resources’ Malmbjerg project, a world-class primary deposit located in East Greenland. With a completed feasibility study and clear objectives for commercial production within the current decade, the Malmbjerg project is poised to become a cornerstone of Greenland Resources’ operational portfolio.
The agreement is designed with a strong emphasis on sustainability. Outokumpu’s strategy not only focuses on ensuring a secure supply of molybdenum but also on reducing its Scope 3 emissions through the procurement of low-emission raw materials. The contractual terms include a cap and floor pricing mechanism, thereby providing both price stability and cost competitiveness.
Voices from the Industry
“Europe is heavily reliant on imports for many critical raw materials and the dependence creates vulnerabilities due to geopolitical factors and supply chain disruptions. Furthermore, Europe is the second largest molybdenum user worldwide and has had no production of its own. The cooperation with Greenland Resources allows us to get access to low-emission molybdenum from Greenland, which strengthens our supply chain of critical raw materials and reduces our Scope 3 emissions at competitive prices, including a cap and a floor mechanism. This further strengthens our long-term raw material availability, complementing our own chrome mine in Finland, and our investment in a junior nickel mine project in Canada”, says Marc-Simon Schaar, Chief Financial Officer at Outokumpu.
“We are delighted to partner with Outokumpu, with the long-term supply of molybdenum oxide which at current market prices would represent a value of approximately USD 1.6 billion over ten years. This constitutes a critical milestone for our company towards achieving commercial production. Our two companies share similar sustainability values and commitment to responsible mining. The high-quality molybdenum ore and low-emission processing at Malmbjerg are ideally suited to secure long-term supply for Outokumpu’s specialty steel products”, says Dr Ruben Shiffman, Greenland Resources Executive Chairman.
Supporting Institutions and Future Outlook
Greenland Resources Inc. is bolstered by the support of several key institutions, including the European Institute of Innovation and Technology (EIT), the European Raw Materials Alliance (ERMA), and Finnvera in Finland. This backing further reinforces the project’s viability and its alignment with broader European initiatives to secure and sustainably manage critical raw materials.
Looking ahead, this strategic partnership not only promises to secure a stable base load of molybdenum for Outokumpu’s operations in Europe but also positions both companies as pivotal players in the transformation of raw material sourcing and sustainable industrial practices.
