Greenland has given permission to a Canadian mining company to explore for molybdenum, a metal critical to the production of steel, amid growing demand from the defense industry.

Greenland Resources Inc., which is based in Toronto, got a 30-year exploitation permit for molybdenum and magnesium at the Malmbjerg project in east Greenland, according to a statement late Thursday.

Greenland, the world’s largest island, is attracting more global attention than ever before. Known for its icy terrain and ...