Portugal’s mining strategy may favour copper over lithium
Portugal already has the largest copper mine in the European Union, operated by Lundin Mining.
The European Raw Materials Alliance (ERMA) and Greenland Resources have announced they are collaborating on the Malmbjerg molybdenum project, in a cross-regional mining initiative to build a secure and sustainable European raw materials value chain.
Greenland Resources has proposed to build a 35,000-ton-per-day mining facility which would produce 483 million pounds of molybdenum over 20 years at a cash cost of $6.30/lb. molybdenum.
Currently, China produces around 45% of world’s molybdenum, while the EU is the second largest molybdenum user worldwide and has no production of its own.
Greenland Resources said it will supply some 25% of Europe’s total molybdenum demand for 20 years from a responsible EU source with one of the highest-grade and clean molybdenum deposits in the world, adding that Malmbjerg will prioritize responsible mining practices and top-tier environmental, social and governance (ESG) standards.
The collaboration with ERMA enabled Greenland Resources to sign documentation on offtake agreements directly with six major EU metallurgical steel and chemical companies and to secure letters of intent to finance the project capex from AAA credit-rated financial institutions, it said.
As global demand for molybdenum continues to soar, its prices have surged, making it one of 2023’s top-performing metals. The London Metal Exchange reported a closing price of $23.95/lb. on Sept.22, nearly 33% higher than the base case price used in the company’s NI 43-101 feasibility study.
“Greenland is committed to fostering responsible mining ventures that not only tap into our abundant natural resources but also prioritize the well-being and empowerment of our local communities,” Naaja H Nathanielsen, Greenland’s Minister of Finance, Minerals, Justice and Gender Equality, said in a statement.
“It’s crucial that we set a benchmark for ESG standards while maintaining our competitive advantage,” Nathanielsen added. “Projects such as the Malmbjerg project with proximity to Europe and high-quality ore serve as a model of responsible mining practices, and they hold immense importance for our region in terms of growth and job creation.”
In June, Greenland Resources expanded its support to Ittoqqortoormiit, the nearest community to the Malmbjerg project. This included a boost in financial support and mining training, enhancing internet infrastructure, and allocating funding to strengthen culture and education initiatives.
Greenland Resources also recently signed an MOU with Nuna Group of Companies, a world-class Canadian majority Inuit-owned civil construction company that specializes in Arctic construction and contract mining operations. This will add to the cooperation and training between Canadian and Greenlandic Inuit communities.
“ERMA’s support has been instrumental in our success,” said Dr. Ruben Shiffman, Greenland Resources executive chairman. “Recently, in the presence of the Prime Minister of Belgium, we signed terms with Molymet, the world largest molybdenum roaster, to convert our molybdenite concentrate in Belgium to ferromolybdenum, molybdenum oxide, and ammonium dimolybdate and sell them directly to the EU steel and chemical industry.”
