COPENHAGEN — Canada has awarded C$7 million (approximately $4.93 million U.S.) in grant funding to support a molybdenum mining operation in Greenland, according to an announcement Monday from Greenland Resources.
The company is working to develop the open-pit Malmbjerg mine in eastern Greenland, which sits atop significant deposits of molybdenum — a metal that both the European Union and the United States have classified as a critical mineral.
The Canadian government formalized the commitment through a signed agreement providing a non-repayable contribution via Natural Resources Canada’s Critical Minerals Research, Development and Demonstration programme, the company said.
Greenland Resources noted that Canada has become the first G7 nation to put money into Greenland’s mining sector.
Molybdenum is a silvery-white metal used mainly to reinforce steel and boost its ability to withstand heat and corrosion. Those properties make it essential for industries including defence manufacturing and clean energy development.
Western nations have grown increasingly uneasy about access to the metal after China — which produces roughly 40% of the world’s molybdenum supply — imposed export restrictions on it in early 2025.
Interest in Greenland’s mineral wealth has surged in recent months following efforts by former President Trump to pursue control of the Arctic island, a push that was rejected by both Denmark and Greenland’s government. Despite its abundant natural resources, Greenland’s mining sector has historically struggled to grow due to regulatory hurdles and limited access to financing.
