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| Outokumpu |
$1.6 Billion Offtake Agreement to Support EU Stainless Steel Production and Advance Arctic Mining Project
Outokumpu has signed a landmark $1.6 billion offtake agreement with Greenland Resources to secure a 10-year supply of molybdenum oxide (MoOx) from the Malmbjerg project in eastern Greenland. The deal will provide 8 million pounds of MoOx annually, covering approximately 50% of Outokumpu’s global molybdenum needs and 25% of Malmbjerg’s expected output.
Molybdenum is a critical alloying element in stainless steel production, boosting corrosion resistance and mechanical strength. The deal will help strengthen Europe’s supply chain resilience, particularly for the infrastructure, chemical, and energy sectors.
Strategic Financing and Arctic Resource Development
As part of the agreement, Outokumpu will support Greenland Resources in obtaining financing to develop the $820 million Malmbjerg mine, a project poised to become a key Arctic mining asset. In February, Export Development Canada issued a letter of interest for up to $275 million in financing.
While a draft exploitation license has been granted, final permitting is still pending. Once operational, Malmbjerg is expected to yield 571 million pounds of molybdenum over its 20-year mine life, based on 245 million tonnes of ore grading 0.176% MoS₂.
Securing Critical Raw Materials Amid Market Volatility
European molybdenum oxide prices have dropped 14% since June 2024, currently sitting at $20.65–$20.85/lb (Argus). This volatility highlights the importance of long-term supply agreements like this one, especially as Europe seeks to diversify away from dominant suppliers such as China and Chile.
The Malmbjerg project, one of the Arctic’s most advanced mining ventures, aligns with the EU’s broader strategy to secure sustainable, reliable access to critical raw materials.
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