Greenland Resources Inc. has announced a significant milestone in its journey towards commercial production, signing a long-term off-take agreement with Outokumpu, a leading global producer of stainless steel. This agreement, aimed at supplying molybdenum oxide, marks a pivotal step in securing a stable and sustainable supply chain for a critical raw material in Europe.

The ten-year agreement commits Greenland Resources to supply approximately eight million pounds of molybdenum per year, representing roughly 25% of the company's projected production for the first decade of operation. This substantial volume will directly support Outokumpu, the largest stainless steel producer in Europe and the second largest in the Americas, in its manufacturing processes.

A key feature of the agreement is the establishment of a price floor and cap, providing both companies with financial predictability and stability in a volatile commodities market.

The agreement's commencement is contingent upon the fulfillment of standard terms and conditions. Importantly, Outokumpu has also pledged to assist Greenland Resources in securing capital expenditure (capex) financing, a crucial step towards bringing the Malmbjerg molybdenum project into full production.

The Malmbjerg project, known for its high-quality molybdenum ore and low-emission processing capabilities, is ideally positioned to meet Outokumpu’s long-term supply needs.

This partnership addresses a critical vulnerability in the European supply chain. As noted by Marc-Simon Schaar, Chief Financial Officer at Outokumpu, Europe heavily relies on imports for critical raw materials, creating susceptibility to geopolitical factors and supply chain disruptions. Molybdenum, a key component in specialty steel production, has seen no domestic production within Europe.

"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," stated Schaar. He highlighted the strategic importance of this agreement in complementing Outokumpu's existing raw material sources, including its chrome mine in Finland and investment in a nickel mine project in Canada.

Dr. Ruben Shiffman, Executive Chairman of Greenland Resources, emphasized the shared commitment to sustainability. "We are delighted to partner with Outokumpu, with the long-term supply of approximately eighty million pounds of molybdenum oxide. This constitutes a critical milestone for our company towards achieving commercial production." He further noted the alignment of both companies’ sustainability values and commitment to responsible mining practices.

This collaboration is expected to have a significant positive impact on Greenland Resources' ability to secure the necessary financing and move forward with the development of the Malmbjerg project, ultimately contributing to the economic and industrial landscape of Greenland and Europe. The partnership signals a move towards greater resource security and sustainable practices in the European steel industry.