Greenland Resources Inc. has announced a key development in the licensing process for its mining operations in Greenland. The company has received a revised final draft of its exploitation license from regulatory authorities, incorporating both molybdenum and magnesium resources.

The updated draft includes resolutions to several regulatory comments, as previously noted in the company’s Jan. 20 news release. Significantly, the Government of Greenland confirmed that the presence of magnesium at the site has now been sufficiently substantiated and delineated, and will be included in the exploitation license alongside molybdenum.

The revised draft license will now move to the next phase, with regulators submitting a formal recommendation for approval to the Government of Greenland, known as the Naalakkersuisut. An official signing ceremony for the exploitation license is expected to take place in Nuuk, attended in person by company representatives and a Greenlandic minister.

Magnesium is a lightweight metal known for its high strength-to-weight ratio and is primarily used in the form of magnesium metal or compounds such as caustic-calcined magnesia, magnesium chloride, magnesium hydroxide, and various sulfates. Key applications include magnesium metal for casting alloys in the automotive and aerospace sectors (64%), aluminum-base alloys for packaging and transportation (18%), and desulfurization of iron and steel (4%).

According to the U.S. Geological Survey (2024), global smelter production of magnesium metal reached 1 billion metric tonnes in 2024, with 85% of output sourced from seawater. Despite this production level, smelter capacity worldwide is double that amount. Approximately 75% of magnesium compounds are used in industrial applications, including fertilizers, livestock feed, Epsom salts, heat-resistant construction materials, and de-icing products.

China dominates global magnesium production, accounting for 89% of the market. Europe imports 97% of its magnesium supply from China, with the remainder sourced from countries such as Russia, Israel, and Turkey, according to the European Commission (2023). Neither the United States nor the European Union currently produces magnesium domestically, though both recognize the metal as a critical or strategic mineral.

In response to supply concerns, the U.S. Department of Defense recently invested in a private company exploring new technologies to extract magnesium from seawater.

Greenland Resources is also exploring ways to increase magnesium output by extracting it from the saline water in the tailings management facility used during ore processing, in addition to the magnesium already present in the ore body.

This development represents a major step forward in the company's strategy to support diversified critical mineral supply chains, especially within the EU.

Greenland Resources is a publicly listed Canadian company regulated primarily by the Ontario Securities Commission. The company is advancing the development of its 100%-owned Climax-type primary molybdenum deposit in central eastern Greenland. In addition to molybdenum, the project contains magnesium as a byproduct—an element for which China currently controls 89% of global market production.