Greenland Resources Advances Rare Earth and Magnesium Recovery Project With Government Funding
Greenland Resources received a $7 million non-repayable Canadian government contribution to support feasibility studies on recovering rare earth elements and magnesium as byproducts from its Malmbjerg ore body. The company collected over 8 tonnes of core samples and 14 tonnes of water during summer fieldwork, which will undergo testing through March 2028 to evaluate metallurgical recovery rates and concentration grades. The initiative addresses supply chain dependencies, with North America relying on China for 75% of magnesium imports and the EU sourcing 97% from China.
Greenland Resources collected field samples during summer 2026 to test whether rare earth elements and magnesium can be economically extracted alongside molybdenum production at its Malmbjerg site. The company secured core samples and water specimens from specific locations near the ore body, then transported them through Iceland to a testing facility in Ontario. Comprehensive metallurgical analysis will run through early 2028 to determine extraction efficiency and material concentration levels.
The $7 million funding from Canada's Critical Minerals program reflects growing government interest in reducing dependence on Chinese supply chains. North American and European markets currently rely heavily on China for processed magnesium and rare earth materials, creating potential vulnerabilities in manufacturing and technology sectors that require these inputs.
Successful commercialization of byproduct recovery could diversify global supply chains for industrially important materials, potentially affecting manufacturers, governments, and consumers who depend on stable commodity pricing and availability. Western nations may gain negotiating leverage in critical material sourcing, though financial viability remains uncertain pending test results. The project's outcome could influence investment decisions by other mining companies considering similar recovery operations in established mining regions.