Tetra Tech Supports Greenland Resources' Malmbjerg Molybdenum Project Approval and Economic Impact

Greenland Resources Achieves Key Approval for Malmbjerg Molybdenum Project

Greenland Resources Inc. receives a significant boost with the approval of its Social Impact Assessment (SIA) by the Greenland government. This approval follows in-depth evaluations involving regulators, local communities, and other stakeholders. The outcome enables Greenland Resources to move forward with final translations of the SIA into the local languages of Greenlandic and Danish, marking a crucial step in advancing the Malmbjerg molybdenum project. Conducted by WSP Denmark, the SIA assesses the project's social impacts and reports highly positive results, particularly in areas such as job creation, educational benefits, and contributions to the local economy.

The Malmbjerg project is poised to create between 250 and 500 high-quality local jobs, enhancing training opportunities for the workforce. While the assessment acknowledges low negative impacts, the emphasis remains on the project's potential to significantly develop the region's infrastructure, including the introduction of renewable energy sources. Notably, the project could substantially reduce Greenland's economic dependency on Denmark, with projections estimating nearly US$100 million in annual taxes for two decades. This financial influx underscores the project's potential to become a vital revenue source for the country, demonstrating its broader economic implications.

Greenland Resources is also awaiting the granting of the exploitation license, a critical next step in the project timeline. To further promote the Malmbjerg initiative, the company plans to participate in various industry events, including a sustainable mining conference in Vienna on November 13, 2024, and a mining investment forum in Nuuk on November 20, 2024. The Malmbjerg operation, characterized as an environmentally friendly open-pit venture, is designed to minimize water usage and ecological disruption, aligning with current sustainability trends in the mining sector.

In addition to the approval of the SIA, Greenland Resources' Definitive Feasibility Study outlines a robust financial outlook for the Malmbjerg project, indicating a capital expenditure of US$820 million. The study also highlights an impressive levered after-tax internal rate of return of 33.8%, coupled with a payback period of just 2.4 years, based on a molybdenum price of US$18 per pound. These figures not only reinforce the project's viability but also position it as a strategic asset in the global molybdenum market.

With these developments, Greenland Resources is set to play a pivotal role in enhancing the economic landscape of Greenland while contributing to the sustainable mining movement. The positive reception of the SIA signals strong support for the project's objectives and its alignment with community and governmental goals.