MOLY news Greenland expects draft exploitation licence shortly
2024-06-11 09:49 ET - News Release
Dr. Ruben Shiffman reports
GREENLAND RESOURCES EXPECTS DRAFT EXPLOITATION LICENSE
Further to Greenland Resources Inc.'s press release dated April 2, 2024, the company's wholly owned subsidiary Greenland Resources A/S has received a positive assessment letter from the Greenland Mineral License and Safety Authority (MLSA) stating that the company fulfilled the formal submission requirements of the Act on Mineral Activities and that a draft exploitation licence is expected to be issued within the next three months. If the company has no further comments to the draft, the exploitation licence is submitted for approval to the government of Greenland.
The company also expects to provide an update on the capex financing process within the next few weeks.
Based on the current project National Instrument 43-101 definitive feasibility study, the project is set to potentially become the largest public revenue source in Greenland for decades to come (greater than $1-billion (U.S.) in taxes) and create over 500 local jobs during construction and 200 local jobs during the 20-year mine life. Moreover, it aims to provide new life skills and training opportunities for the people of Greenland while establishing critical infrastructure on the east coast.
Additionally, the project holds the potential to emerge as the largest molybdenum supplier to the European Union Green Deal, aligning with high sustainable standards and responsible sourcing practices. Currently the EU is the second-largest user of molybdenum worldwide and, despite having a self-sufficient molybdenum processing capacity and high-quality steel and chemical products that require molybdenum, it has no molybdenum mines. With China dominating 45 per cent of the world molybdenum market (byproduct and primary) and primary molybdenum being less than 15 per cent of the total world molybdenum production, the EU has only one western country currently supplying primary molybdenum, crucial for producing high-performance steels, including military-grade and advanced chemical products, sectors led worldwide by the EU.
Furthermore, the project economics are favourably positioned, as current molybdenum prices are above $23 (U.S.) per pound, notably higher than the $18 (U.S.) per pound of molybdenum considered in the company's NI 43-101 feasibility study.
The company also wishes to announce that it will be participating on June 14 in a panel discussion at Folkemodet in the Danish island of Bornholm, invited by COWI. The event will focus on mineral resources, the green deal, climate and more. The panel will include the company, the president of COWI, the Greenland Minister of Mines and a partner from Kaya Partners. Folkemodet is a prominent political event held annually in Bornholm, bringing together Danish business leaders, academia, politicians and individuals with a keen interest in democracy with the aim to inspire each other and find solutions to the challenges of society. Denmark has one of the largest molybdenum end-users worldwide for chemical applications and one of the world's largest wind turbine manufacturers. Wind turbines require significant amounts of molybdenum in several crucial components amounting to approximately 120 kilograms of molybdenum per megawatt installed capacity.