Outokumpu signs ten-year molybdenum offtake deal with Greenland Resources
Stainless steel producer Outokumpu Oyj has entered into a ten-year agreement with Canadian mining company Greenland Resources Inc. for the future supply of molybdenum, a critical raw material, to Europe.
Outokumpu Oyj, a global leader in stainless steel, has signed a ten-year offtake agreement with Canadian mining firm Greenland Resources Inc. The deal secures approximately 3.6 million kilograms (8 million pounds) of molybdenum annually for Outokumpu’s European operations at competitive prices, covering about half of the company’s yearly requirement.
Molybdenum is a critical raw material for the production of specialty stainless steels. Greenland Resources’ Malmbjerg project in East Greenland hosts a significant molybdenum deposit, with commercial production targeted within this decade. The commencement of the offtake obligation is subject to customary terms and conditions.
Outokumpu's Chief Financial Officer, Marc-Simon Schaar, stated that the agreement reduces Europe's reliance on imported raw materials and associated geopolitical risks. Sourcing molybdenum from Greenland supports Outokumpu’s goals for a lower-emission value chain and reduced Scope 3 emissions. This secures long-term raw material availability, complementing the company's own chrome mine in Finland and its investment in a Canadian nickel mine project.
Greenland Resources Executive Chairman, Dr. Ruben Shiffman, highlighted the agreement as a key milestone towards commercial production. The deal represents an estimated value of approximately USD 1.6 billion over ten years for molybdenum oxide at current market prices. Both companies share commitments to sustainability and responsible mining practices.