Outokumpu & Greenland Resources sign LoI to strengthen the future supply chain of low-emission high-quality molybdenum

Outokumpu, a global supplier of sustainable stainless steel, has been exploring opportunities to secure sustainable molybdenum supplies from western suppliers as a part of its long-term strategy for value-chain integration.

Molybdenum is a critical and strategically important raw material for Outokumpu’s stainless steel production. Molybdenum improves the corrosion resistance; stainless steel grades that include molybdenum are sometimes called acid-proof.

Outokumpu has therefore signed a letter of intent with Greenland Resources Inc., a Canadian mining company developing the Malmbjerg molybdenum project in east Greenland. A definitive feasibility study completed by Tetra Tech in February 2022 put Malmbjerg mineral reserves at 245 million tonnes at an average grade of 0.176% MoS₂ containing 571 million pounds of molybdenum metal with very low impurity elements—ideal for European high performance steel products.

Outokumpu looks to support Greenland Resources as an interested future customer, as Greenland Resources has completed a definitive feasibility study and is currently negotiating capex funding to build the mine. The letter of intent allows the companies to continue negotiations on further detailed cooperation.

Malmbjerg molybdenum deposit in east Greenland outcrops as per lighter staining and is one of the cleanest of its kind with the highest grade molybdenum and low footprint.

Greenland Resources is developing one of the highest grade molybdenum deposits in the world with an ore body that contains very few deleterious elements, in a high ESG standard jurisdiction part of Denmark. The project is supported by European Institute of Innovation and Technology (EIT) RawMaterials and European Raw Material Alliance (ERMA), a body of the European Union.

The Malmbjerg molybdenum project is an open-pit molybdenum mine that could supply around 25% of the European molybdenum demand. Europe is the second largest molybdenum user worldwide and has no production of its own.

The Malmbjerg molybdenum project has a low footprint due to modularized infrastructure, low O₂ emissions, low aquatic disturbance and clean contained tailings. The transport of 35,000 tonnes of ore per day uses a gravity based aerial rope conveyor that requires no energy and therefore causes no carbon emissions and generates electricity from braking.

The carbon footprint of Outokumpu’s stainless steel is already the lowest in the industry. It is a competitive advantage for us, and we want to drive green transition and further decarbonize our product – and the whole industry. Cooperation within our value chain allows us to reduce our supply chain emissions, and at the same time we also want to ensure access to the most sustainable molybdenum suppliers like the Canadian company Greenland Resources. Long-term cooperation with Greenland Resources could also provide us an access to a stable supply of molybdenum and protect us from volatile market pricing and supply. We are excited about the collaboration and are looking forward to continuing the good dialogue aiming at a binding long-term cooperation.

—Marc-Simon Schaar, Chief Procurement Officer at Outokumpu