Canada has announced a non-repayable grant of C$7 million (approximately US$4.93 million) to support the development of the Malmbjerg molybdenum mining project in eastern Greenland. The funding, provided through Natural Resources Canada’s Critical Minerals Research, Development and Demonstration programme, marks the first investment by a G7 nation in Greenland’s mining sector. The project is being developed by Greenland Resources and focuses on extracting molybdenum, a critical mineral recognized by both the European Union and the United States.
Molybdenum is widely used to strengthen steel and improve its resistance to heat and corrosion, making it essential for industries such as aerospace, clean energy, and defence. The investment comes as Western countries seek to diversify supplies of critical minerals following China’s decision to impose export controls on molybdenum in early 2025. China currently accounts for around 40 percent of global molybdenum production, raising concerns over long-term supply security.
Greenland’s vast reserves of critical minerals have attracted increasing international attention despite the island’s mining sector facing challenges such as limited financing and regulatory hurdles. Interest in the Arctic territory has also grown amid broader geopolitical competition over strategic resources. While proposals by U.S. President Donald Trump to take control of Greenland were firmly rejected by both Denmark and Greenland’s government, Western nations continue to strengthen economic and strategic ties with the resource-rich island through investments such as Canada’s latest funding initiative.
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