South Korea has restarted tungsten mining for the first time in 32 years, and related companies and the local government are considering supplying Japan. If this happens, Japan's long-standing reliance on China for tungsten procurement will be expanded, potentially becoming a new pillar of industrial cooperation between Japan and South Korea.
Almonty Industries, a global mining giant based in the United States, resumed mining operations in March in Yeongwol County, Gangwon Province, in eastern South Korea. This marks the first resumption of production in 32 years since the mine was closed in 1994. The reason behind this restart is surging demand. Almonty acquired the mine in 2015 and invested approximately 40 billion yen in its development. Annual production is expected to reach a maximum of 4,600 tons. In the short term, about half of the production will be supplied to the United States under long-term contracts, with the remainder allocated to South Korea, Japan, other Asian regions, and Europe.
Tungsten is an essential rare metal in the manufacture of a wide range of products, including cutting tools and automobiles. In recent years, the supply and demand relationship for tungsten has become increasingly strained due to the expanding demand for semiconductors used in artificial intelligence (AI). China, which accounts for about 80% of global tungsten production, has tightened export controls, and coupled with tensions in the Middle East, tungsten prices have risen four to five times in the past year.
