Greenland Resources has secured final approval for a US$7 million non-repayable grant from the Government of Canada to support development work at the Malmbjerg molybdenum project in Greenland. The funding will finance a programme focused on molybdenum optimisation, magnesium recovery and the evaluation of potential rare earth by-products, with activities scheduled to continue until March 2028.
The grant supports technical work aimed at expanding the project’s processing potential beyond its existing molybdenum development plan by assessing additional mineral recovery opportunities.
Programme Expands Scope Beyond Primary Molybdenum Production
The approved programme will investigate the recovery of magnesium and rare earth elements alongside the project’s primary molybdenum production. The initiative broadens the development strategy for the Malmbjerg deposit by evaluating opportunities for by-product recovery and mineral processing in addition to its planned molybdenum output.
The Canadian government funding also links the Greenland-based project to broader critical minerals initiatives involving G7 countries through direct public financial support.
Feasibility Study Outlines Project Economics
According to Greenland Resources, the project’s 2022 NI 43-101 feasibility study estimated an initial capital expenditure of US$820 million. The study reported a leveraged after-tax internal rate of return (IRR) of 33.8% and a payback period of 2.4 years, based on a molybdenum price of US$18 per pound. The feasibility study also reported proven and probable mineral reserves of 245 million tonnes grading 0.176% MoS₂, equivalent to approximately 571 million pounds of contained molybdenum metal.
Technical Evaluation Focuses on Additional Mineral Recovery
The programme supported by the Canadian grant will examine technical pathways for recovering magnesium and rare earth elements from seawater, process streams or mineral concentrates associated with the project. The work is intended to assess metallurgical performance, processing requirements and environmental considerations associated with recovering additional mineral products alongside planned molybdenum production.
