Introduction
Amid rising political instability and resource scarcity, key players in the stainless steel and molybdenum sectors are turning to Greenland for sustainable solutions. Finnish stainless steel giant, Outokumpu, and Canadian mining firm, Greenland Resources Inc., have signed a Letter of Intent to bolster supply chain stability and protect against volatile pricing.
A Strategic Move: The Letter of Intent
This partnership aims to secure a long-term supply of high-quality, low-emission molybdenum, an essential raw material in stainless steel production. Molybdenum is known for its corrosion-resistance properties, making it valuable in acid-proof stainless steel manufacturing.
Sustainability and Value Chain Integration
Outokumpu aims to synchronize its value chain with Western molybdenum suppliers. The collaboration with Greenland Resources is strategic in this regard. Greenland Resources is in the final stages of the Malmbjerg molybdenum project in East Greenland.
The Malmbjerg Advantage
The Malmbjerg deposit is noteworthy for its high-grade molybdenum and minimal environmental footprint. It can potentially meet approximately 25% of Europe's molybdenum needs and has garnered support from key EU bodies like EIT RawMaterials and ERMA.
Industry Support and Regulatory Backing
Marc-Simon Schaar, Chief Procurement Officer at Outokumpu, supports the alliance for its potential to stabilize molybdenum supply and shield against market fluctuations.
Environmental Stewardship
The Malmbjerg project employs eco-friendly, modularized infrastructure. It plans to transport 35,000 tonnes of ore per day using a gravity-based aerial rope conveyor, which generates electricity and emits no carbon.
Aligned with EU Goals
This partnership aligns with the EU's circular economy objectives. It focuses on local extraction, processing, and production, and also promotes sourcing within the EU.
Conclusion
The partnership between Outokumpu and Greenland Resources sets a new standard in sustainable mining practices. It ensures robust supply chain and balances shareholder value with ecological responsibility.
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