U.S. Government Researchers Assess South Korean Tungsten Mine Amid Growing Critical Minerals Competition
In a strategic move to diversify global sources of critical minerals, U.S. government researchers recently visited the Sangdong Mine in South Korea. The visit underscores the heightened competition for vital resources as the U.S. and its allies seek to reduce dependency on China, which currently dominates over 80% of the tungsten supply chain.
The Sangdong Mine, operated by a subsidiary of Canada-based Almonty Industries, is poised to resume operations this year. Tungsten, a metal renowned for its exceptional hardness, is crucial in manufacturing weapons, semiconductors, and industrial cutting tools. The potential of the Sangdong Mine to significantly alter the tungsten market is substantial, with Almonty projecting that it could eventually account for up to 50% of global tungsten supply outside China.
U.S. Strategic Interests in Critical Minerals
The visit by four mineral resource experts, led by Sean Xun, Assistant Chief at the National Minerals Information Center of the U.S. Geological Survey (USGS), reflects the U.S. government’s increasing focus on securing critical mineral supplies. The USGS is set to release a comprehensive update on the Sangdong Mine’s potential in its 2025 report, providing crucial insights into the mine’s role in the global supply chain.
The Biden administration has made critical minerals a key component of its national security strategy, particularly in the context of the ongoing trade tensions with China. The administration’s efforts include imposing tariffs on certain minerals and investing in domestic mining capabilities. According to the USGS, in 2019, the U.S. was entirely dependent on foreign sources for 13 out of 35 mineral commodities deemed critical by the Department of the Interior.
Almonty Industries’ Investment and China’s Strategic Maneuvers
Almonty Industries has committed at least $125 million to reopen the Sangdong Mine, which had been closed since the 1990s. This significant investment aims to revive the mine’s operations and enhance its production capabilities. The reopening of Sangdong is expected to provide a vital alternative to China’s near-total control over tungsten production and supply.
China’s influence over the global critical mineral supply chain has been increasingly evident, with Beijing leveraging its dominance to control exports. While China has not yet imposed restrictions on tungsten exports, there are growing concerns that forthcoming regulations on antimony—a metal similar to tungsten—could signal tighter controls on tungsten in the future. The U.S. and its allies are closely monitoring these developments and preparing to respond.
Gabriel Wildau, Managing Director at consulting firm Teneo, highlighted the potential for increased tensions if the U.S. escalates tariffs on China. Wildau noted that Beijing might retaliate with stricter export controls on critical minerals or selectively target companies seen as supporting Washington’s technological policies.
In response to China’s strategic maneuvers, the U.S. Energy Department has already allocated $151 million in grants to promote domestic mining and processing of critical minerals. This funding is part of a broader initiative to bolster the U.S. mineral supply chain and reduce reliance on China. Western nations are also expected to accelerate their efforts to secure alternative sources and technologies in response to China’s potential export restrictions.
The Broader Context of Mineral Resource Competition
The global race for critical minerals is intensifying as nations recognize the strategic importance of these resources for technology, defense, and industrial applications. The competition for tungsten and other essential metals is not just a matter of economic interest but also a significant factor in national security and technological advancement.
The Sangdong Mine’s reopening represents a crucial development in the global mineral resource landscape. If successful, it could pave the way for similar projects in other countries and contribute to a more diversified and resilient global supply chain. As geopolitical tensions and trade disputes continue to shape the global economy, securing access to critical minerals will remain a top priority for governments and industry leaders alike.
Conclusion
The U.S. government’s interest in the Sangdong Mine reflects a broader strategy to address vulnerabilities in the global supply chain for critical minerals. With China’s dominant position in the tungsten market, the development of alternative sources is essential for ensuring a stable and secure supply of these vital resources. The ongoing efforts to revive and expand tungsten production outside China highlight the strategic importance of mineral resource management in the 21st century.