Tetra Tech Observes Greenland Resources' Sustainable Molybdenum Project Milestone and Economic Impact

Greenland's Molybdenum Future: A Step Forward for Sustainable Mining

Greenland Resources Inc. achieves a significant milestone with the approval of its Social Impact Assessment (SIA) by the Greenland government, allowing the company to move forward with its Malmbjerg molybdenum project. This approval follows a thorough review process that involved regulators, stakeholders, and local communities, underscoring the project’s commitment to responsible development. The SIA, conducted by WSP Denmark, reveals a highly positive outlook regarding the social impacts of the project, particularly in terms of job creation, educational opportunities, and contributions to the public economy. With no communities located within 185 kilometers of the proposed mining site, the project aims to foster economic growth while minimizing potential negative effects on local populations.

The Malmbjerg project is poised to create between 250 and 500 high-quality jobs, significantly enhancing local training opportunities and infrastructure development. Importantly, it is designed as an environmentally friendly open-pit operation that prioritizes reduced water usage and minimal ecological disruption. The project also holds the potential to lessen Greenland's economic dependency on Denmark, with forecasts indicating nearly US$100 million in annual tax revenues over the next 20 years. This revenue stream could revolutionize the economic landscape of Greenland, providing a substantial source of funding for public services and infrastructure.

As Greenland Resources prepares for the next steps in advancing the Malmbjerg project, it anticipates the granting of an exploitation license. The company is proactive in engaging with the global mining community, with plans to attend a sustainable mining conference in Vienna and a mining investment forum in Nuuk in November 2024. These events will serve as platforms for promoting the project's benefits and attracting potential investors who share a commitment to sustainable mining practices.

In addition to the positive social impacts, the Malmbjerg project is backed by a Definitive Feasibility Study that outlines a capital expenditure of US$820 million, paired with a levered after-tax internal rate of return of 33.8% and a payback period of just 2.4 years at a molybdenum price of US$18 per pound. These financial metrics further highlight the project’s viability and potential for long-term success, reinforcing the importance of sustainable practices in the mining industry. As Tetra Tech continues to monitor developments in the mining sector, the outcomes of Greenland Resources’ initiatives could set important precedents for future sustainable projects globally.