As China's export regulations come into play, tungsten prices have reached their highest level in 14 years, prompting previously closed domestic mines to resume commercial production.
According to industry reports on the 6th, ammonium paratungstate (APT) prices recently exceeded $465 per mtu (10 kg), the highest level since 2011. The significant influence comes from China, which accounts for about 80% of the world's tungsten supply, designating tungsten as a strategic mineral and tightening export regulations.
Tungsten is essential in traditional industries such as cutting tools, light bulb filaments, and ultra-high strength alloys, as well as future industries like wind power, nuclear fusion, electric vehicles, semiconductors, and defense, based on its high melting point (3,422℃), hardness, and conductivity. However, Korea relies on China for over 90% of its tungsten imports, leading to a vulnerable supply chain.
In response, movements to reopen domestic tungsten mines, which have been suspended for decades, are emerging. Notably, the Sangdong mine in Yeongwol, Gangwon Province, and the Sangjeon mine in Uljin, North Gyeongsang Province, have completed preparations to resume commercial production.
Estimates suggest that the Sangdong mine has about 58 million tons of tungsten, while the Sangjeon mine has 23 million tons. It is expected that they could produce 7,000 to 8,000 tons of tungsten annually, which is more than half of the domestic demand.
Previously, the government designated tungsten and 33 other types as core minerals, currently reviewing plans for infrastructure investment, exploration capacity expansion, and optimization of mining operations, primarily led by state-owned resource enterprises and private consortiums.
The reopening of the Sangdong and Sangjeon mines is the first case testing its feasibility. It is reported that discussions are underway to introduce 'smart mining technology' considering productivity, cost structure, and environmental impacts.
A resource development specialist noted, 'Domestically strategic mineral resources that have been neglected for decades are being re-evaluated for industrial value,' and emphasized that 'a comprehensive localization strategy integrating refining and supply chain linkage, beyond simple mining, should be implemented.'