Tungsten - Can The Market Economy Countries Hold Their Own?

The U.S. Bureau of nines evaluated the potential availability of tungsten from 57 tungsten mines and deposits in 19 market economy countries (1). The 38 properties that were producing at the time this study was performed contain approximately 375,000 tons1 of W03 (tungsten trioxide). The total estimated recoverable resource from all properties studied, both producers and nonproducers, was 1.2 million tons W03 (demonstrated level). Approximately 143,000 tons of W03 is recoverable from producing properties with costs at or below the January 1983 market prices. The study indicates that by 1990 production from currently operating mines in market economy countries will decrease as their demonstrated resources become exhausted. Some of this potential decline may be offset by lower than anticipated levels of market demand, discoveries of additional resources at producing mines, development of other known deposits, and/or discoveries of new deposits. Development of new tungsten resources in market economy countries will likely result in costs higher than exist at currently producing properties. The People's Republic of China has been steadily increasing production and export of tungsten in various form and currently supplies about 25 pct of U.S. imports. China's tungsten mines are large, high-grade operations capable of producing at relatively low cost. These factors, coupled with China's apparent need for foreign exchange, could lead to further expansions of production and exports from China, with a consequent increased dependence by market economy countries on China for tungsten requirements and a threat to the survival of the market economy countries' tungsten industries.