Tetra Tech Supports Greenland Resources' Molybdenum Project with Draft Exploitation License Approval

Greenland Resources Advances Molybdenum Mining with Draft Exploitation License

Greenland Resources Inc. reaches a pivotal moment in its mining operations with the receipt of a draft exploitation license for its Malmbjerg molybdenum project in Greenland. This development follows extensive regulatory processes, including public consultations and environmental assessments, which began with the submission of Terms of Reference to the Government of Greenland in December 2019. After receiving approval in September 2022 for its environmental and social impact assessments, the company formally applied for the exploitation license on January 10, 2024. The recent confirmation from regulators that its application meets all necessary criteria culminates in the issuance of this draft license on January 19, 2025.

The Malmbjerg project is designed with sustainability in mind, focusing on reducing water usage and minimizing environmental impact. The project's Definitive Feasibility Study completed in 2022 outlines a substantial capital expenditure of US$820 million, with an impressive levered after-tax internal rate of return (IRR) of 33.8% and a payback period of just 2.4 years at a molybdenum price of US$18 per pound. Proven and Probable Reserves are estimated at 245 million tonnes, containing 571 million pounds of molybdenum, underscoring the project's potential for robust production, particularly in its initial years where higher-grade molybdenum will be prioritized.

As Greenland Resources Inc. navigates the regulatory landscape, it looks ahead to advancing discussions based on the feedback associated with the draft exploitation license. The company has also sought a two-year exemption from local management requirements, which was granted in December 2024. This strategic maneuver allows Greenland Resources to continue its operations while ensuring compliance with the evolving regulatory framework. The company’s focus on eco-friendly mining practices positions it favorably within the industry, paving the way for future advancements in sustainable mineral extraction.

In addition to its licensing progress, Greenland Resources is committed to maintaining open communication with stakeholders throughout the mining process. Updates regarding the exploitation license will be forthcoming as discussions progress. The focus on sustainable mining not only aligns with global industry trends but also enhances the company's reputation as a responsible operator in the resource sector. With robust reserves and a favorable economic outlook, Greenland Resources is poised to make a significant impact in the molybdenum market.