(Bloomberg) — Greenland has given permission to a Canadian mining company to explore for molybdenum, a metal critical to the production of steel, amid growing demand from the defense industry.
The Arctic island and its mineral riches have this year become hot geopolitical topics after Donald Trump’s persistent requests to take over the territory, which is part of the Kingdom of Denmark. At the same time, the European Union has identified Greenland as a strategic area of interest as the continent tries to become less dependent on the import of raw materials.
Greenland Resources Inc., which is based in Toronto, got a 30-year exploitation permit for molybdenum and magnesium at the Malmbjerg project in east Greenland, according to a statement late Thursday. The company can apply to extend the license period to up to 50-years.
The miner said Malmbjerg has the potential to supply all the EU’s demand for molybdenum for defense purposes for decades to come, even as military budgets expand. The Canadian company has signed offtake deals with European steelmakers. Primary molybdenum is currently only produced in China, which has 87% of the market, and the US, which has the remaining 13%, the company said.
“The progress we are experiencing in the mineral resources sector is good news for all of us,” Naaja H. Nathanielsen, who’s Greenland’s minister in charge of business and minerals, said in the statement. “The mineral resources projects contribute to the Greenland government’s goal of a self-sustaining economy and local communities are served through job creation.”
Last week, another Canadian miner raised funds to help expand production at Greenland’s main gold deposit, Nalunaq. In January, Denmark said it will support a company exploring in south Greenland for graphite, a raw material considered critical by the EU.
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