Canada backs Greenland mine producing metal crucial to defence industries

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.

• 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)

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