Greenland Resources says it has signed a letter of intent (LOI) for supply of metallurgical process equipment, technology, services and technical solutions for the Malmbjerg molybdenum project with FLSmidth.

The Malmbjerg molybdenum project is an open-pit operation with an environmentally friendly mine design focused on reduced water usage, low aquatic disturbance and low footprint due to modularised infrastructure, Greenland Resources says. A 2022 definitive feasibility study on Mambjerg by Tetra Tech outlined proven and probable reserves of 245 Mt at 0.176% MoS2. It also highlighted a 20-year open-pit mine life with average annual production in years 1-10 of 32.8 MIby of contained molybdenum metal at an average grade of 0.23% MoS2 and average annual life of mine production of 24.1 MIb with a cash cost of $6.38/lb Mo.

The company has now added FLSmidth to the list of Denmark-based companies associated with the project. These relationships are expected to facilitate equipment financing from government banks in Denmark, it says.