Tungsten is more than just a metal; it plays a crucial role in modern technology and defense systems. Renowned for its unparalleled hardness and high melting point, tungsten is a key ingredient in the manufacture of various industrial tools, semiconductors, and weaponry. In an increasingly competitive geopolitical landscape, the focus on securing a steady supply of critical minerals like tungsten has intensified, especially for nations looking to reduce dependency on foreign sources.
Recent developments have shed light on the U.S. government’s strategy to bolster its mineral resources. A team of government researchers visited the Sangdong Mine in South Korea, a facility owned by Almonty Industries, with the aim of evaluating the potential to source tungsten from regions outside of China. Notably, China currently monopolizes over 80% of the tungsten market, making the need for alternative sources pressing. The U.S. has not engaged in commercial tungsten mining since 2015, emphasizing the urgency for domestic supply chains. The decision to assess the Sangdong Mine reflects a calculated move by the U.S. to reclaim some level of control over its critical resources.
The Sangdong Mine, which is poised to resume operations after being halted in the 1990s, holds substantial promise for the tungsten supply chain. According to assessments, it could potentially yield up to 50% of the tungsten needed worldwide, paving the way for a more diversified and stable supply. This is not just an economic opportunity; it also represents a strategic leverage point for the U.S. against the backdrop of its relations with China. Almonty’s commitment of at least $125 million to revive the mine indicates a serious investment in this endeavor.
The geopolitical implications surrounding tungsten shouldn’t be underestimated. As tensions rise between the U.S. and China, particularly with regard to technology and trade, the latter has demonstrated a willingness to utilize its control over critical minerals as leverage. Though they have not yet imposed restrictions on tungsten, recent moves to cull exports of antimony highlight a potential pattern that could extend to other minerals, including tungsten. Experts, like Gabriel Wildau from Teneo, have noted that a change in U.S. presidential leadership could prompt further retaliatory actions from China, potentially complicating the attempt to secure stable mineral flows.
In response to the challenges posed by reliance on foreign sources, the Biden administration has prioritized the development of critical minerals. The U.S. Energy Department has allocated $151 million in grants aimed specifically at stimulating domestic mining efforts. This financial backing is crucial for fostering an environment where the U.S. can not only mine essential minerals but also process them on home soil, thereby creating jobs and enhancing economic resilience. The forthcoming assessments from the U.S. Geological Survey, particularly concerning the progress at the Sangdong Mine, are expected to inform further policy decisions.
The drive towards securing tungsten and other critical minerals is indicative of a larger narrative involving national security and economic sovereignty. As companies like Almonty take significant steps in reviving key mining operations, the U.S. appears poised to reduce its reliance on foreign imports. However, the path is fraught with complexities, including potential Chinese retaliation and the necessity for increased investment in domestic capacities. The developments at the Sangdong Mine may well serve as a litmus test for the U.S.’s broader strategy in navigating the complex and often tumultuous waters of global mineral supply chains. By pursuing a multi-faceted approach that combines investment, assessment, and strategic international partnerships, the U.S. can work towards ensuring a robust and resilient supply of tungsten and other critical minerals well into the future.