“The cooperation with Greenland Resources allows us to get access to low-emission molybdenum from Greenland, which strengthens our supply chain of critical raw materials and reduces our Scope 3 emissions at competitive prices, including a cap and a floor mechanism,” said Marc-Simon Schaar, chief financial officer at Outokumpu.

Molybdenum is a critical raw material used to produce specialty stainless steel. The company says that while Europe is the second largest user of molybdenum worldwide, they have no production of their own. Instead, Outokumpu will purchase the raw material from Greenland Resources’ Malmbjerg project in East Greenland.

“Our two companies share similar sustainability values and commitment to responsible mining. The high-quality molybdenum ore and low-emission processing at Malmbjerg are ideally suited to secure long-term supply for Outokumpu's specialty steel products,” said Ruben Shiffman, Greenland Resources executive chairman.

According to a press release, Outokumpu recently made similar agreements for long-term raw material access in Finland for a chrome mine and in Canada for a junior nickel mine project.

Greenland Resources hopes to achieve commercial production this decade.