Key facts
- Canada has granted C$7 million to a Greenland molybdenum mining project.
- The Malmbjerg mine in east Greenland contains molybdenum, a critical mineral.
- Molybdenum is essential for aerospace, energy, and defence applications.
- Canada is the first G7 nation to invest in Greenland's mining sector.
- China's export controls on molybdenum have raised supply security concerns.
Canada has provided C$7 million ($4.93 million) in grants to a Greenland molybdenum mining project, a metal critical for aerospace, energy, and defence industries. 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 signed an agreement for the non-repayable contribution through Natural Resources Canada's Critical Minerals Research, Development and Demonstration programme. Greenland Resources stated that Canada is the first G7 government to invest in mining in Greenland.
Molybdenum is a silvery-white metal primarily used to strengthen steel and improve its resistance to heat and corrosion, making it vital for industrial applications such as defence and clean energy. Concerns about supply security have heightened following China's imposition of export controls on the metal in early 2025, as China accounts for approximately 40% of global molybdenum production.
Despite being rich in natural resources, Greenland's mining industry has faced slow development due to bureaucracy and financing challenges. The push by Donald Trump to take control of Greenland, though rejected by Denmark and Greenland's government, has spurred increased Western interest in the Arctic island's mineral wealth.