Canada backs Greenland mine producing metal crucial to defence industries

Greenland Resources

29/06/2026 07:05

    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 MOLY.TO 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)
 ((stine.jacobsen@thomsonreuters.com; +45 2156 9010))