Canada backs Greenland mine producing metal crucial to defence industries
Canada backs Greenland mine producing metal crucial to defence industries
Mon, June 29, 2026 at 6:11 AM UTC
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COPENHAGEN, June 29 (Reuters) - Canada has given C$7 million ($4.93 million) in grants to a Greenland molybdenum mining project, a critical metal used in aerospace, energy and defence, Greenland Resources said on Monday.
• Greenland Resources is developing the open-pit Malmbjerg mine in east Greenland, which holds deposits of molybdenum, classified as a critical mineral by both the European Union and the United States.
• The Canadian government has signed an agreement for the non-repayable contribution through Natural Resources Canada's Critical Minerals Research, Development and Demonstration programme, the company said in a statement.
• Greenland Resources said Canada is the first G7 government to invest in mining in Greenland.
• Molybdenum is a silvery-white metal used primarily to strengthen steel and improve its resistance to heat and corrosion, making it critical for industrial applications such as defence and clean energy.
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• China, which accounts for around 40% of global molybdenum production, imposed export controls on the metal in early 2025, heightening Western concern about supply security.
• Trump's push to take control of Greenland has been rejected by Denmark and Greenland's government but sparked a surge of Western interest in the Arctic island's vast mineral resources.
• Although rich in natural resources, Greenland's mining industry has been slow to develop due to bureaucracy and lack of financing.
($1 = 1.4194 Canadian dollars)
(Reporting by Stine Jacobsen, editing by)
Source: “AOL Money”
