In this article, we'll talk about the 11 largest tungsten producing countries. If you want to skim through the details and find the main tungsten titans, read 5 Largest Tungsten Producing Countries.
Amongst the largest tungsten producing countries, China is the undisputed titan, as its annual tungsten production accounts for 84% of the world's supply. Despite numerous international concerns regarding this significant concentration, China's hold over the market, combined with the country's extensive reserves, continues to cement its position as a primary contributor to the global tungsten industry. Having the largest tungsten deposits in the world resulted in the metal's overproduction in China, which eventually caused a fall in its prices. To mitigate this pricing downfall, the Chinese government has implemented a production ceiling of 91,300 metric tons per year.
Other top tungsten producing countries are Vietnam and Russia, amounting to 5.7% and 2.7% of 2022 tungsten production, respectively. Tungsten mining is fraught with significant limitations with the pricing not aligning with rising capital mining costs.
The tungsten mining companies on the rise are Kennametal Inc. (NYSE:KMT), Allegheny Technologies Incorporated (NYSE:ATI), and Air Products and Chemicals, Inc. (NYSE:APD), among others.
Since tungsten is typically found in the ore minerals scheelite and wolframite, its mining requires complex and expensive methods for extraction and refining. The ores have a low yield of tungsten, which further necessitates large-scale operations for mining companies like Kennametal Inc. (NYSE:KMT), Allegheny Technologies Incorporated (NYSE:ATI), and Air Products and Chemicals, Inc. (NYSE:APD) to be economically viable. We have explained more about the rising mining capital expenditure of major mining companies in the 15 Largest Zinc Producing Countries In The World; give it a read to see how mining costs have taken flight.
What Took the UK Out Of The Race of The Largest Tungsten Producing Countries?
One key name amongst the biggest tungsten producers is the United Kingdom, which contributed a significant chunk to the world's total production. However, the country stopped mining tungsten after 2017, owing to its biggest mine's financial downfall.
According to USGS, the United Kingdom has the world's fourth-largest tungsten reserves that amount to 43,000 metric tons of tungsten.
The biggest share of the United Kingdom's tungsten reserves is in the Hemerdon mine, also known as Drakelands Mine, located near Plymouth. Once operated by the Australian firm Wolf Minerals Ltd, this mine was contributing to the world's overall tungsten production in the form of tungsten oxides.
However, the mine's trajectory took an unforeseen turn in 2018 when Wolf Minerals Ltd filed for voluntary administration after its talks of further financial assistance failed. This development was prompted by escalating operational costs and unattractive tungsten market values. The prohibitive cost structure of mining, in light of tungsten's market value, distorted the economic viability of continued extraction, and the mine stopped operating.
Tungsten West plc (LSE:TUN.L) took ownership of the Hemerdon mine in 2019 to rewind UK's tungsten mining. However, efforts to resuscitate tungsten production haven't delivered promising results owing to persisting adverse economic conditions. While Tungsten West plc (LSE:TUN.L) has exhibited a determined ambition to steer the mine back to production, the prevailing market price of tungsten remains a critical hurdle. By 2023, the price of tungsten had yet to attain a threshold that could feasibly justify the inherent costs of mining operations.
Thus, despite the change in ownership and the concerted attempts to recommence operations, the Hemerdon mine has remained non-operational since 2018. Like Kennametal Inc. (NYSE:KMT), Allegheny Technologies Incorporated (NYSE:ATI), and Air Products and Chemicals, Inc. (NYSE:APD), Tungsten West plc (LSE:TUN.L) needs prompt infrastructure upgradation to mine tungsten in the UK. Consequently, the UK's production of tungsten has remained stagnant over the period 2019 to 2023, despite the substantial reserves that position the nation as a potential key player in the global tungsten market.
Adding another dimension to the complex situation for Tungsten West plc (LSE:TUN.L) is the recent geopolitical instability sparked by the war in Ukraine. The war's ripple effects have percolated through the global commodities market, thereby exerting additional inflationary pressure on the mine's operational inputs.
The commodities market, particularly affected by international instability, saw price surges in several inputs critical to mining operations. Among these were steel, cement, explosives, power, and diesel – all essential resources for the functioning of a large-scale tungsten mine like Hemerdon. Tungsten West stated that significant and rapid inflation in these input costs further exacerbated the economic challenges that the operation was grappling with.
11 Largest Tungsten Producing Countries
Methodology
USGS's mineral commodity summaries are the most extensive databases for mining and materials. Therefore, we referred to the annual tungsten commodity summaries published by USGS on January 31st, 2023. This report focuses on the recent trends and events in the tungsten mining sector, along with listing the Biggest tungsten producing countries in the world.
However, owing to the current summary's limited database, we explored reports published by USGS in the years 2018, 2019, and 2022 to compile the list of the world's biggest tungsten producing countries. Besides the annual mine production, we also explained some of these countries' tungsten reserves for a clearer perspective.
According to our data sources, here are the largest tungsten producing countries in the world:
11. North Korea
Tungsten Production in 2021: 410 metric tons
Our meticulous examination of global mineral output data showed that North Korea is the 11th largest tungsten producer worldwide. Although there's no clear data on North Korea's tungsten production in 2022, the country recorded an output of 410 metric tons in 2021. However, it is a substantial decrease from the peak production of 1,100 metric tons in 2019, a dip reflecting an intricate nexus of economic and geopolitical factors, necessitating further multidisciplinary exploration.
10. Portugal
Tungsten Production in 2022: 500 metric tons
As of 2022, Portugal is the 10th largest global producer of tungsten, as it generated approximately 500 metric tons during the year. Portugal also houses an estimated 3,100 metric tons of tungsten reserves, a figure that is indicative of its considerable potential to sustain production.
9. Spain
Tungsten Production in 2022: 700 metric tons
Spain is amongst the largest tungsten producing countries in the world, owing to its 700 metric tons of tungsten mine production in 2022. Moreover, this figure is merely a fraction of the nation's proven reserves, which are estimated to be around 56,000 metric tons. Such reserves highlight Spain's potential for sustained tungsten production in the years ahead and can foster stability in the global supply chain for this critical industrial metal.
8. United Kingdom
Tungsten Production in 2018: 900 metric tons
The United Kingdom was the eighth largest tungsten producing nation in 2018, with an impressive output of 900 metric tons. However, a noteworthy shift occurred when Hemerdon Mine, the country's largest tungsten mine, entered into voluntary administration in the same year.
This move signaled a significant hiatus in the UK's tungsten production industry and left a marked impact on the country's standing in the global market. The voluntary administration represents a strategic, consensual approach adopted by the company in the face of financial distress, aiming to restructure its affairs while maximizing the interests of its stakeholders. Hemerdon Mine is currently in a transitional phase, working towards reestablishing its operations while undergoing internal reconfigurations.
7. Austria
Tungsten Production in 2022: 900 metric tons
Austria evidenced a noteworthy contribution to the global tungsten industry in 2022 and earned the 7th position amongst the largest tungsten producing countries. As per USGS statistical data from 2022, Austria mined 900 metric tons of tungsten, a metal renowned for its high melting point and robust strength. Austria's tungsten reserves amount to approximately 10,000 metric tons and indicate the country's potential capacity.
6. Rwanda
Tungsten Production in 2022: 1,100 metric tons
Recent data reflects that Rwanda is the sixth largest producer of tungsten, as it banked 1,100 metric tons of tungsten in 2022. Although Rwanda's tungsten reserves are unclear, its consistent production between 2016 and 2022 solidifies its rank as a mighty tungsten producer. Tungsten is characterized by its robustness and high-temperature resistance, and its use expands to various sectors like military applications and everyday consumer products. Hence, Rwanda's burgeoning tungsten production provides it with an instrumental leverage in this in-demand market.
