China's Exclusive Export Policy for Tungsten Sparks Competition in the West

In a significant move impacting global tungsten markets, China has officially designated just 15 firms as authorized exporters for tungsten during the years 2026 and 2027. This restrictive measure was part of the new dual-use items catalogue announced in December 2025, which has raised concerns about tungsten supply chains worldwide.

Tungsten, a critical mineral essential for numerous high-tech and defense applications, experienced a drastic price surge, with its concentrate valued between $2,500 and $2,800 per metric tonne as of May 29, 2026. Fastmarkets had estimated prices around $750 to $850 per metric tonne unit at the start of 2026, illustrating a threefold increase over just five months. Such a rise in price is not attributed to a spike in demand but rather the limitations placed on export licenses.

According to the U.S. Geological Survey, China's mine output accounted for approximately 67,000 of the 85,000 tonnes produced worldwide in 2025. With the U.S. producing none for several years, the Western firms must scurry to secure their shares of the limited tungsten available from the specified exporters.

The implications of such restrictions extend beyond mere pricing dynamics; they highlight broader critical mineral procurement challenges. Up until the end of 2026, under the Defense Federal Acquisition Regulation Supplement (DFARS) 252.225-7052, sourcing tungsten from China, Russia, Iran, and North Korea hinges on the material's origin—from where it is melted or produced. Beginning January 1, 2027, the rules will be tightened further to include where the ore was mined, complicating supply chains significantly.

Interestingly, several companies are rising to this challenge. Notably, GoldHaven Resources Corp. has initiated diamond drilling at its Magno Project in British Columbia, targeting the historically significant Kuhn tungsten skarn system. With an ambitious goal, over 800 meters have been drilled from the first pad, revealing extensive skarn intervals and a promising geological formation that may contain greater tungsten resources than previously understood.

GoldHaven's approach is revolutionary in leveraging modern technology to verify historical data, which, while promising, must be treated with caution due to its outdated classification status under NI 43-101. Despite the existing estimates suggesting approximately 616,500 tonnes of tungsten grading 0.48% WO3, these are not classified as current resources due to the lack of verification by a qualified person.

The drilling results thus far indicate the potential for discovering a more extensive skarn deposit than previously interpreted from historical drilling logs. This modern drilling initiative is part of a broader effort to revitalize mining operations in Northern British Columbia, a region rich in mineral resources.

Simultaneously, other activities in the tungsten industry include Almonty Industries' new joint venture with the Government of Rwanda, which aims to address the widening gap in tungsten supply ahead of regulatory changes in 2027. The company is planning to leverage small-scale operations within Rwanda to stimulate tungsten sourcing and processing, positioning itself as a key player in the new landscape of the tungsten market.

Guardian Metal Resources, another company making strides in this sector, received exciting news that it will join the prestigious FTSE AIM 50 Index later this month. This announcement marks a significant achievement for the company, which is dedicated to enhancing U.S. tungsten production through its mining projects in Nevada.

Meanwhile, Ramaco Resources has taken an unconventional route by exploring the Brook Mine in Wyoming, described as the largest unconventional rare earth and critical minerals deposit in the U.S. This diversification reflects the growing trend of American companies exploring alternative sources and types of critical minerals, significantly extending beyond the usual mining of traditional ores.

Additionally, Idaho Strategic Resources is uniquely funding its critical mineral exploration through its operational gold mine. It claims to control the most extensive rare earth element land package in the U.S., reinforcing the trend of integrating various mineral explorations into single operational frameworks.

As the tungsten market continues to evolve, the array of active projects signifies a heightened urgency among Western firms to secure tungsten supplies that are increasingly under strain due to geopolitical tensions and regulatory restrictions. Each company's progression will tracking closely through ongoing drilling initiatives, strategic partnerships, and market adjustments as the 2027 procurement regulations loom closer.

With supply bottlenecks and legislative changes reshaping the landscape, the next few years could see a transformation in how tungsten—an often overlooked but vital mineral—is sourced and utilized across various industries.