Greenland Resources Signs MOU With Germany’s GMH Gruppe to Secure Long-Term Molybdenum Supply for Europe

TORONTO — Greenland Resources Inc. (TSX: MOLY; FSE: M0LY) announced it has signed a memorandum of understanding (MOU) with GMH Gruppe SE & Co. KG, a major European producer and processor of specialty steel products, to create a pathway toward a long-term supply relationship for molybdenum-based materials destined for European industry.

The agreement follows Greenland Resources’ earlier update that the European Commission introduced RESourceEU and referenced the company’s Malmbjerg molybdenum project in Greenland as a priority EU project. The newly signed MOU is positioned as a concrete next step toward improving Europe’s supply security for molybdenum, a critical alloying element widely used in high-performance steels.

What the MOU Covers

According to the announcement, the MOU sets a framework for negotiating a future long-term supply agreement covering multiple molybdenum products, including:

• Ferro-molybdenum
• Molybdenum oxide
• Molybdenum briquettes

These products would be produced from molybdenum ore extracted in Greenland by Greenland Resources, with refining planned in Belgium. GMH would then use the molybdenum products to support its steelmaking and downstream manufacturing value chains—primarily in Germany and across Europe.

Why This Matters for European Industry

Molybdenum is a small-volume but high-impact metal: when added to steel and cast iron, it can enhance strength, toughness, weldability, corrosion resistance, and performance at high temperatures—traits demanded by advanced industrial sectors. In practice, this makes molybdenum essential for both everyday infrastructure and high-spec applications.

The press release highlights that the EU is the second largest molybdenum user globally and has significant processing capacity, but no molybdenum extraction—a structural gap that leaves European manufacturers reliant on imports.

Germany’s Supply-Risk Signal

The announcement also points to Germany’s classification of molybdenum as a high-risk strategic raw material (described in the release as “category 3” on Germany’s criticality list). In plain terms, that classification reinforces that molybdenum is not only important—it’s also considered vulnerable to disruption.

About GMH Gruppe: A Steelmaker Focused on Low-Carbon Production

GMH Gruppe is described as one of Europe’s largest privately owned metal-processing companies, spanning scrap-based steelmaking through to ready-to-install components. The group reportedly includes 20+ sites, serves customers in 50+ countries, employs around 6,000 people, and generates annual revenues of over €2 billion.

A key reason this partnership stands out is GMH’s emphasis on sustainability. The company is described as a pioneer in “green steel” production using electric arc furnaces (EAFs) and recycled scrap—an approach the release says can produce about 80% fewer CO₂ emissions than conventional blast furnace routes. The announcement also notes GMH’s stated goal of achieving full climate neutrality by 2039.

GMH’s steel and components serve a wide range of end markets, including:

• Automotive
• Aerospace
• Energy
• Construction machinery
• Mechanical engineering
• Transportation and rail
• Tooling and specialty industrial applications
• Defence-related supply chains

For such sectors, reliable access to alloying materials—especially those on critical minerals lists—can be just as important as the steelmaking capacity itself.

Greenland Resources and the Malmbjerg Project

Greenland Resources is a Canadian public company focused on developing a 100% owned “Climax-type” primary molybdenum deposit in central east Greenland: the Malmbjerg project. Beyond molybdenum, the company also highlights magnesium as a potential byproduct—an important note because the press release describes that market as being heavily dominated by China.

Mine Design and Environmental Focus

The Malmbjerg project is described as an open pit operation with a mine design focused on reduced water usage, low aquatic disturbance, and a reduced footprint supported by modularized infrastructure. This matters in Greenland’s sensitive environment, where stakeholders commonly scrutinize water management, local ecosystems, and the scale of industrial installations.

Feasibility Study Snapshot

The release states the project benefits from an NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022. Figures cited in the announcement include an estimated US$820 million capex, a levered after-tax IRR of 33.8%, and an estimated payback of 2.4 years, using an assumed molybdenum price of US$18 per pound.

Important context: feasibility studies rely on assumptions (commodity prices, operating conditions, permitting, financing, construction performance, and more). Actual results can differ materially, which is why the release also includes extensive forward-looking statements and risk factors.

Reserves and Potential Output

The company reports Proven and Probable Reserves of 245 million tonnes grading 0.176% MoS₂, corresponding to 571 million pounds of contained molybdenum metal. The announcement adds that during the first half of mine life (when higher-grade ore is mined), average annual contained molybdenum production in years one to ten could be about 32.8 million pounds per year at an average grade of 0.23% MoS₂.

In a particularly strategic claim, the release states this output could represent roughly 25% of total EU yearly consumption and potentially cover 100% of EU defence needs for molybdenum.

How the Supply Chain Is Intended to Work

One of the most practical details in the announcement is the proposed processing pathway:

1. Mining in Greenland (molybdenum ore extraction at Malmbjerg)
2. Refining in Belgium (conversion into industrial molybdenum products)
3. Use in Europe (GMH’s steelmaking and downstream products, primarily centered in Germany)

By structuring the chain this way, the partnership aims to combine resource development from an EU associate-country source with processing and industrial consumption located within Europe’s existing manufacturing footprint.

Why “Responsibly Sourced” and “Low Emissions” Are Core Selling Points

The press release emphasizes that GMH would be able to secure a stable, long-term molybdenum supply with high sustainability standards and low Scope 1 and 2 emissions (as described in the announcement). In today’s market, this isn’t just branding—European manufacturers increasingly face:

• Supply-risk concerns (geopolitics, export controls, shipping disruptions)
• Customer demands for lower-carbon materials
• Regulatory and reporting pressure related to carbon footprint transparency
• Procurement requirements that prioritize traceability and responsible sourcing

Against that backdrop, the combination of scrap-based green steel and a potentially diversified molybdenum source can be commercially meaningful—especially for demanding customers in automotive, aerospace, and energy transition supply chains.

Political and Strategic Signals: Canada, Germany, and Critical Minerals

The announcement includes a comment attributed to Canada’s Minister of Energy and Natural Resources, referencing a declaration of intent signed in Berlin to strengthen cooperation on critical minerals, and noting that Greenland Resources had been highlighted in a prior G7-related communiqué in 2025. The statement frames this MOU as another step in building trade opportunities for Canadian businesses while supporting allied industrial supply chains.

While corporate MOUs are not the same as government policy, it’s notable that the press release connects the agreement to a broader trend: governments and industries are increasingly aligning around critical minerals security, especially for inputs that underpin advanced manufacturing and defence readiness.

Molybdenum’s Role in Steel, Energy Transition, and Defence

To understand why this MOU is receiving attention, it helps to look at where molybdenum fits in the real world.

1) Specialty Steel Performance

Steel isn’t one material—it’s a family of alloys engineered for different jobs. Molybdenum helps deliver combinations of strength, corrosion resistance, and heat tolerance that would otherwise be difficult (or expensive) to achieve. This supports everything from high-strength automotive components to heavy machinery and industrial tooling.

2) Energy and Infrastructure

Energy systems—whether traditional or renewable—depend on materials that can handle harsh conditions: temperature swings, corrosion, pressure, and long operating lives. Molybdenum-bearing steels are often used where failure is not an option, supporting reliability and safety in critical infrastructure.

3) Defence Applications

The release states that more than 80% of metallic materials used for defence applications require molybdenum alloying. It also emphasizes that “primary molybdenum” with low deleterious elements can be especially suitable for high-performance and defence-related steel needs.

In that context, securing dependable supply is not only an economic issue—it can be a strategic resilience issue as well.

Market Concentration and Supply Risk

The announcement presents a view of concentrated production for primary molybdenum, stating that it is produced in China and the USA, and noting that China has imposed export controls and has become a net importer (as described in the release). The statement also notes that molybdenum is categorized as critical and/or strategic across several major defence nations.

When a supply chain depends heavily on a small number of producing regions, downstream manufacturers can face price volatility and uncertainty—especially when global demand rises or when policy changes affect exports. From that perspective, new projects that diversify supply can attract significant interest, even before production begins.

Magnesium Byproduct Potential: A Second Strategic Angle

Beyond molybdenum, Greenland Resources highlights magnesium as a possible byproduct. The project reportedly uses significant volumes of saline water containing magnesium, and the company says it is working on extracting magnesium using innovative technologies while aiming to incorporate magnesium into the project’s economics.

Why is that meaningful? Because it suggests the operation could eventually support more than one strategically relevant material stream—potentially improving resilience, value creation, and alignment with industrial policy priorities focused on critical inputs. That said, byproduct recovery and commercialization often require additional engineering work, validation, and market development, so investors typically watch these claims carefully.

Key Figures at a Glance

Topic	What the Announcement Says
Parties	Greenland Resources Inc. and GMH Gruppe SE & Co. KG
Instrument	MOU toward long-term molybdenum supply
Products	Ferro-molybdenum, molybdenum oxide, briquettes
Mining Location	Malmbjerg project, central east Greenland
Refining	Planned in Belgium
Feasibility Study	NI 43-101 DFS (Tetra Tech, 2022)
Stated Reserves	245 Mt at 0.176% MoS2; 571M lbs contained Mo

FAQs

1) What is an MOU, and does it guarantee supply?

An MOU is typically a formal statement of intent that outlines a framework for cooperation. It does not always guarantee final terms or binding deliveries. In this case, the MOU “sets the path” toward a long-term supply agreement, implying more steps are needed to finalize definitive contracts.

2) What molybdenum products are included in the planned supply relationship?

The announcement references ferro-molybdenum, molybdenum oxide, and briquettes derived from ore mined in Greenland and refined in Belgium.

3) Why is Europe interested in new molybdenum sources?

The release states the EU is a major molybdenum user with strong processing capacity but no extraction. That mismatch can create vulnerability and motivates interest in diversified, reliable sources tied to European industry.

4) What is special about GMH Gruppe’s steel production model?

GMH is described as using electric arc furnaces and scrap recycling to produce steel with significantly lower CO₂ emissions than conventional routes, and it has a stated climate-neutrality goal by 2039.

5) What is the Malmbjerg project and how large is it?

Malmbjerg is Greenland Resources’ primary molybdenum deposit in Greenland. The company reports Proven and Probable Reserves of 245 million tonnes with 571 million pounds of contained molybdenum metal.

6) Is magnesium part of this story too?

Yes. The company describes magnesium as a byproduct opportunity, including work to extract magnesium from saline water and incorporate it into project economics. However, this appears separate from the MOU’s molybdenum supply focus.

Conclusion: A Step Toward More Resilient, Lower-Carbon Industrial Supply Chains

Greenland Resources’ MOU with GMH Gruppe signals a strategic alignment between upstream critical minerals development and downstream European industrial demand. By combining a potential Greenland molybdenum source, planned refining in Belgium, and GMH’s scrap-based, lower-carbon steelmaking footprint, the partnership aims to support supply security, sustainability goals, and competitive manufacturing capacity across Europe.

As with any MOU tied to mining project development, the next milestones—permitting, financing, detailed engineering, definitive offtake terms, and execution—will determine how quickly this intention turns into physical supply. Still, the announcement underscores a clear message: in an era of critical minerals competition, reliable inputs like molybdenum are increasingly treated as strategic foundations, not just commodities.

Reference: Details in this rewritten report are based on the company announcement distributed via Business Wire.

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