Inside information: Outokumpu signs a ten-year off-take agreement with Greenland Resources Inc. to ensure access to a critical raw material in Europe

Outokumpu, the global leader in sustainable stainless steel, has signed an off-take agreement with Canadian mining company Greenland Resources Inc. for the future supply of a strategically important raw material at competitive prices. The agreement covers approximately 8 million pounds of molybdenum per year (value approximately USD 160 million at current market prices), representing roughly half of the annual need for Outokumpu. The company's total raw material procurement, including molybdenum, is approximately EUR 3 billion annually.

Greenland Resources Inc owns the Malmbjerg project, a world class primary molybdenum deposit in East Greenland with a feasibility study and an objective to achieve commercial production this decade. The commencement of the off-take obligation is subject to the satisfaction of customary terms and conditions.  

The off-take agreement supports Outokumpu to further decarbonize and continue its long-term strategy for sustainable and cost-competitive value-chain integration. The agreement provides Outokumpu with a solid base load of molybdenum for business area Europe. The company aims to strengthen its position within advanced materials and molybdenum is a critical raw material for the production of specialty stainless steel.

"Europe is heavily reliant on imports for many critical raw materials and the dependence creates vulnerabilities due to geopolitical factors and supply chain disruptions. Furthermore, Europe is the second largest molybdenum user worldwide and has had no production of its own. 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. This further strengthens our long-term raw material availability, complementing our own chrome mine in Finland, and our investment in a junior nickel mine project in Canada", says Marc-Simon Schaar, Chief Financial Officer at Outokumpu.

"We are delighted to partner with Outokumpu, with the long-term supply of molybdenum oxide which at current market prices would represent a value of approximately USD 1.6 billion over ten years. This constitutes a critical milestone for our company towards achieving commercial production. 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", says Dr Ruben Shiffman, Greenland Resources Executive Chairman.

Greenland Resources Inc is supported by the European Institute of Innovation and Technology (EIT), European Raw Materials Alliance (ERMA) and Finnvera in Finland.

Outokumpu signs a letter of intent with Greenland Resources Inc. to strengthen the future supply chain of low-emission high-quality molybdenum | Outokumpu

For more information:

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669 

Media: Päivi Allenius, SVP - Communications, tel. +358 40 753 7374 or Outokumpu media desk, tel. +358 40 351 9840

Outokumpu Corporation