Outokumpu Secures Sustainable Molybdenum Supply
Outokumpu has taken a significant step in fortifying its future supply chain of environmentally friendly, high-quality molybdenum by entering into a letter of intent with Greenland Resources Inc.
This initiative aligns seamlessly with Outokumpu's commitment to sustainability and its overarching strategy for value-chain integration.
Molybdenum, a vital raw material for Outokumpu's stainless steel production, holds strategic importance in their quest for sustainability.
Greenland Resources Inc., a Canadian mining company, is spearheading the development of the Malmbjerg molybdenum project in East Greenland.
Outokumpu has expressed its interest in supporting Greenland Resources as a future customer. Currently, Greenland Resources is in the advanced stages of negotiations for capital expenditure funding required for mine construction. The letter of intent paves the way for ongoing discussions and detailed collaboration between the two entities.
Greenland Resources stands out for its development of one of the world's highest-grade molybdenum deposits, characterised by its low content of deleterious elements. Notably, this project operates under high environmental, social, and governance (ESG) standards in a jurisdiction that aligns with Denmark's regulations.
It is worth mentioning that the Malmbjerg molybdenum project enjoys support from the European Institute of Innovation and Technology (EIT) RawMaterials and the European Raw Material Alliance (ERMA), both bodies of the European Union.
This open-pit molybdenum mine has the potential to cater to approximately 25% of the European molybdenum demand, a significant achievement given that Europe currently relies on imports for its molybdenum supply.
What sets the Malmbjerg project apart is its environmentally friendly approach, featuring modularised infrastructure, minimal CO2 emissions, low aquatic disturbance, and responsible tailings management. The ore transport process utilises a gravity-based aerial rope conveyor, entirely free of energy consumption and carbon emissions, and even generates electricity through braking.
Marc-Simon Schaar, Chief Procurement Officer at Outokumpu, highlights the company's commitment to reducing its carbon footprint and driving the green transition within the industry. Collaboration with partners like Greenland Resources not only helps reduce supply chain emissions but also ensures access to sustainable molybdenum sources, safeguarding against volatile market prices and supply uncertainties.
Dr. Ruben Shiffman, Chairman of Greenland Resources, underscores their mission to extract top-tier molybdenum while upholding high ESG standards in Greenland, a jurisdiction with living standards akin to Finland.
The Malmbjerg deposit, known for its richness and purity, perfectly aligns with Outokumpu's need for high-quality molybdenum in their steel production.
This collaboration ensures a stable supply of molybdenum oxide and carbon-free briquettes, with full transparency regarding the origin of every pound of molybdenum and adherence to stringent ESG standards over the project's 20-year life span. Furthermore, the entire value chain, from extraction to processing and steel production, occurs within the European Union, contributing to EU circularity and sourcing.
In summary, Outokumpu's partnership with Greenland Resources signifies a significant step towards a sustainable future, combining the pursuit of quality molybdenum with environmental responsibility and supply chain stability.
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