Outokumpu signs a letter of intent with Greenland Resources Inc. to strengthen the future supply chain of low-emission high-quality molybdenum

Outokumpu Oyj
Press release
October 6, 2023 at 12.00 noon EEST

Outokumpu signs a letter of intent with Greenland Resources Inc. to strengthen the future supply chain of low-emission high quality molybdenum

Outokumpu, the global leader in 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.* Outokumpu has therefore signed a letter of intent with Greenland Resources Inc., a Canadian mining company developing the Malmbjerg molybdenum project in east Greenland. 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, as per their press release of September 23, 2023. 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 CO2 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,” says Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.

“We plan to extract quality molybdenum with high ESG standards from Greenland, a jurisdiction that is not only part of the kingdom of Denmark but has very similar living standards as Finland. The Malmbjerg primary molybdenum deposit is one of the richest and cleanest of its kind. The resulting ferroalloys are perfectly suited to be used in high quality steels produced by Outokumpu. Outokumpu will be able to source a long-term reliable supply of molybdenum oxide and carbon-free briquettes, know from where every single pound of molybdenum is being extracted, and can follow the high ESG standards over the 20-year mine life. Adding to EU circularity, the extraction will be done in an associate EU country, the processing of the concentrate and steel production will also be done in the EU; and a significant part of the mining equipment, team and funding will be EU sourced,” says Greenland Resources Chairman Dr Ruben Shiffman.

*Molybdenum improves the corrosion resistance, and stainless steel grades that include molybdenum are sometimes called acid-proof.

Further information on the environmentally friendly mine design of the Malmbjerg molybdenum project from the video.

For more information:

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669 

Media: Päivi Allenius, VP – Communications and Brand, tel. +358 40 753 7374 or Outokumpu media phone +358 40 351 9840, e-mail media(at)outokumpu.com