From your perspective, what are the biggest trends shaping the outlook for the metals and mining sector?
Export restrictions on China’s strategic metals, particularly tungsten, are the biggest market factors today, and these will have an impact for years. China, along with Russia and North Korea, controls around 90% of the world’s tungsten supply. For practical purposes, China’s export control prohibits sales to foreign companies and expressly prohibits the export of tungsten to US defense contractors. This will be an acute crisis, except that our Sangdon Tungsten mine will begin production within the next few weeks. Sandong is the world’s largest tungsten mine, but it cannot replace 90% of China’s global supply. Consumers should expect high prices and desperate efforts to expand supply for a long time.
In your recent TradeTalks Interviewyou specifically highlighted the shortage of tungsten mines outside of North Korea, China and Russia. What changes will you expect in mining spaces, especially once tariffs are enforced?
President Trump made it clear that he wants to min and process the US more domestically. This is the right move and I am confident that much investment will flow into mining and processing. But everyone needs to realize that standing up through domestic mining is a slog. Some metals, tungsten, are one, so US preparations are not sufficient to meet domestic demand.
While removing barriers to allow mines domestically is important, the US currently needs a reliable supply of critical metals. Other countries trade important metals around the world. The US must enter the field to buy time to implement the domestic mining and processing industry.
He also talked about the need to find a balance in the supply chain. How are you preparing Almonty as the US navigates this path to a more balanced supply chain?
Tungsten is a typical military metal. The US uses tungsten to produce munitions of all calibers and armor that resists penetration by tungsten rounds. For years, the production relied on Chinese tungsten, but that arrangement is over. Almonty is a redmomiciling as a US company, qualifies for all kinds of support from the US government and rapidly integrates into the US defense raw materials supply chain. Soon, Almonty will officially become the only US tungsten mining company.
Are there any unique forecasts about the outlook for metal production?
You can predict what will not happen. This trade war gave China the excuse to limit the export of important metals. China developed its mining sector by exporting raw materials, but now China is a major consumer of tungsten, rare earths and other strategic metals. Chinese industry can use as much of these metals as possible. They want the same profit margins as turning raw materials into sophisticated manufactured products that we enjoy. China will never again export tungsten and other important metals to some people and those who want them cheaply, as they have done over the years.
