China's Tungsten Export Controls Boost Almonty Shares
Lewis Black, CEO of Almonty Industries Inc., has seen a surge in inquiries after China's recent export controls on tungsten, a critical metal used in weapons manufacturing.
China produces 80% of the world's tungsten, and concerns exist about potential restrictions on tungsten scrap. Almonty's Toronto stock has jumped 41% over the past two days, driven by expectations of reduced supply.
"It's a warning shot," Black said. "Our economy, manufacturing, and defense depend heavily on tungsten. Yet Russia, China, and North Korea control 90% of its production."
China has prohibited tungsten scrap imports for environmental reasons. Lifting this embargo could limit supplies available to other countries.
"This could make it challenging for our customers to compete with China," Black noted.
China's dominance in critical minerals gives it leverage. Almonty, which operates in Portugal, is relocating to the US. It plans to expand in South Korea, opening a new mine yielding 2,500 tons of tungsten annually in the initial phase.
Almonty also produces molybdenum, another mineral affected by China's export controls. However, Black believes its impact will be less significant due to more sources from copper mining.