Tetra Tech Supports Greenland Resources in Securing SIA Approval for Malmbjerg Molybdenum Project

Greenland Government Approves Social Impact Assessment for Malmbjerg Molybdenum Project

Greenland Resources Inc. receives a significant boost with the Greenland government's approval of its Social Impact Assessment (SIA) for the Malmbjerg molybdenum project. Conducted by WSP Denmark, the SIA undergoes thorough scrutiny from regulators, stakeholders, and local communities, ultimately deeming the project's social impacts as highly positive. This assessment lays the groundwork for the company to proceed with translating the SIA into Greenlandic and Danish, facilitating deeper engagement with local stakeholders. The approval marks a pivotal milestone for Greenland Resources, as it prepares to advance its ambitious project aimed at transforming the local economy.

The Malmbjerg project promises to create between 250 and 500 high-quality jobs, significantly bolstering employment opportunities in the region. The SIA highlights the project's potential to enhance local training programs and develop essential infrastructure, including renewable energy sources. Notably, the project is set to play a crucial role in reducing Greenland's economic dependence on Denmark. With an anticipated annual tax generation of nearly US$100 million over the next two decades, the Malmbjerg project stands to be a vital revenue stream for the nation, reinforcing its economic independence and stability.

Despite the absence of communities within a 185-kilometer radius of the proposed site, the project aims to implement environmentally responsible practices. The Definitive Feasibility Study underpins this commitment, showcasing an environmentally friendly open-pit operation designed to minimize water usage and ecological disruption. With an estimated capital expenditure of US$820 million and a levered after-tax internal rate of return of 33.8%, the project indicates a promising payback period of just 2.4 years, assuming a molybdenum price of US$18 per pound. Greenland Resources is eagerly anticipating further developments, including news on the granting of the exploitation license, which will be critical for moving forward.

In addition to the SIA approval, Greenland Resources plans to actively participate in several upcoming events to promote sustainable mining practices. The company is set to engage with industry leaders at a sustainable mining conference in Vienna on November 13, 2024, and a mining investment forum in Nuuk on November 20, 2024. These events will provide valuable platforms for discussing the Malmbjerg project's potential and fostering collaboration within the mining sector.

As Greenland Resources continues to navigate the regulatory landscape, the approval of the SIA sets a promising precedent for the future of the Malmbjerg molybdenum project and its potential to reshape the local economy while adhering to sustainable practices.