Greenland Resources announces the signing of a memorandum of understanding (“MOU”) for long term molybdenum supply with Düsseldorf based company Hempel Metallurgical GmbH, a leading supplier of molybdenum to the German steel industry. Based on Greenland Resources NI 43-101 Feasibility study and the previously announced offtake and roasting agreements, the Company is now positioned to become the largest worldwide molybdenum supplier to Germany. The Company expects further announcements related to direct offtake agreements with German steel companies.
The MOU sets the path for a supply agreement of Molybdenite concentrate as well as secondary products like Ferromolybdenum and Molybdenum Oxide. The partnership focuses on supplying high quality low emissions molybdenum from Greenland to the German steel industry with roasting in Belgium. According to the International Molybdenum Association, in 2024 Germany used 16.3 million pounds of molybdenum making it the largest molybdenum user in the European Union followed by Italy and Finland, countries with large steel companies that have also entered into direct offtake agreements with the Company. The EU is the second largest user of molybdenum worldwide, has a self-sufficient roasting capacity but has no molybdenum extraction. The primary molybdenum in the Malmbjerg project is ideal for EU defence and high-performance steel applications because of low deleterious elements and long-term security supply. More than 80% of the metallic materials (including carbon and stainless steels) to be used for defence applications require molybdenum alloying. Germany expects to increase defense expenditures from current 1.5% to around 5% of GDP. Primary molybdenum is produced in China (87%) and the USA (13%).
About Hempel Group
Hempel Metallurgical GmbH is a trading company based in Düsseldorf, Germany and a leading supplier of molybdenum to the German steel industry. The Company has also European reach in the trading and distribution of metals and alloys and is part of Hempel Intermétaux SA.
Hempel Intermétaux SA, was founded in 1970s as part of the Hempel Group which has its roots in the 1920s, at that time a group of companies comprising independent divisions with global reach in the trading of metals, metal recycling (publicly traded Campine NV), and the distribution and processing of high-performance metallic materials (Hempel Special Metals AG). Since 2017, is its own independent group of companies.
Greenland Resources Inc.
Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focused on the development of its 100% owned Climax type primary molybdenum deposit located in central east Greenland. The Project has also magnesium as a byproduct, a market dominated 89% by China. The Malmbjerg project is an open pit operation.
Source: Business Wire
