Finland’s Outokumpu and Greenland Resources have signed a long-term offtake agreement for the production of the metal molybdenum.
Greenland Resources explains that the offtake agreement positions the company with a “long-term strategy with sustainable and cost-competitive value-chain integration and facilitates access to capex.”
Greenland Resources, a Canadian mining company, despite the name, is developing an open-pit mine in central-east Greenland. The project has an initial capital cost of roughly $820 million.
It’s expected for the mine to produce 32.8 million lb. of molybdenum metal per year, and the life expectancy of the mine is to last around 20 years.
Greenland Resources’ Founder Ruben Shiffman explained that the processing site will produce low-emission, high-quality molybdenum and is “ideally suited to secure long-term supply for Outokumpu’s specialty steel products.”