Greenland has granted a 30-year permit to Toronto-listed Greenland Resources for the development of the Malmbjerg molybdenum mine, marking a major step forward for EU-backed efforts to secure critical raw materials. The project, located in eastern Greenland, is expected to produce an average of 32.8 million pounds of concentrated molybdenum annually—enough to meet around a quarter of Europe’s demand for the metal.
Molybdenum is used in aerospace, clean energy, and defense due to its strength and resistance to heat and corrosion. With China controlling around 40% of global molybdenum production and recently tightening export controls in response to U.S. tariffs, the project carries geopolitical significance.
The Malmbjerg mine is backed by the European Raw Materials Alliance and has already secured supply agreements with major European firms, including Finland’s Outokumpu and Italy’s Cogne Acciai Speciali.
Greenland’s mining sector is seeing increased momentum. Just last month, the country issued another exploitation licence to a Danish-French consortium, and the EU included a graphite project in Greenland among 13 new strategic initiatives aimed at bolstering mineral supply.
Though development in Greenland has historically been slowed by regulatory hurdles and limited financing, interest from both the U.S. and EU is accelerating. The U.S. Export-Import Bank recently confirmed that a Greenland-based rare earth mine met the initial criteria for a $120 million loan.
