Contruction Executive – https://www.constructionexec.com/ has published an article written by Almonty Industries’ CEO Lewis Black, titled ‘International Trade: A Game Plan for Rare Earths and Strategic Metals‘.
In the article, Lewis explains how China currently controls the market for nearly 35 precious minerals and metals that are important for production and manufacturing. However, he goes on to explain how new market entrants have begun mining projects that are critical to increasing supply levels and exports back to the United States:
Article by Lewis Black, Construction Executive: The trade relations between China and the United States have been tense over the last few years. This past January, China and the United States signed a “phase one” trade deal, in which China agreed to buy an additional $200 billion of American goods and services over the following two years. This deal resulted in the suspension of a planned tariff last December on approximately $162 billion worth of Chinese goods, with an existing 15% duty on imports worth around $110 billion halved.
While the tariffs affect many different types of goods that are imported and exported between the two countries, another battle is brewing in this growing trade war: strategic metals.
CHINA HAS DOMINATED THE SUPPLY CHAIN
For years, China and the United States have disputed about the trade of strategic earth metals. Research firms and industry observers believe China values its strategic metals dominance for geopolitical values over commercial gain.
Rare specialty metals, such as tungsten, are used for a variety of advanced technologies in industrial manufacturing, as well as mining operations such as heavy-duty construction and drilling equipment. The metal is also used in the automotive, aerospace and defense industries.
According to a report by consulting firm Horizon Advisory, China cultivated its rare-earth industry through years of state subsidies and could be prepared to use it as a geopolitical weapon.
China controls the market for nearly 35 precious minerals and metals that are important to the United States for production and manufacturing, and tungsten is among them. Furthermore, the second largest tungsten supplier, located in Vietnam, had sourced 6 million metric tons last year. Other regions outside of the United States, such as Russia, Austria and the United Kingdom, are also known to have important tungsten sources.
WHAT’S AT STAKE FOR RARE EARTHS
China has limited the amount of tungsten exports that can be shipped to the United States, and this has caused great concern about its overall supply chain.
In what was seen as an aggressive move, Chinese President Xi Jinping toured a region of the country last year that bills itself as a rare-earths kingdom, and this rhetoric was widely viewed as China strong-arming much of the rest of the world and flexing its muscle for strategic metals supply.
What’s at stake is a more bountiful supply chain of strategic metals such as tungsten. To combat this, the U.S. Defense Department is starting a new grants program to help develop a processing facility at Mountain Pass in California, currently the only U.S-based mine for rare-earths materials. However, U.S. manufacturers need more supply, and soon.
NEW TUNGSTEN PRODUCTION WILL OPEN THE GLOBAL SUPPLY CHAIN
Other new entrants into the market have begun mining projects throughout the world that are mining for tungsten. These efforts are critically important to increase supply levels and exports back to the United States, which will benefit the overall global supply chain of tungsten for production and manufacturing.
For example, the Korea Tungsten project, located in the Sangdong Mine of South Korea, hosts one of the largest tungsten resources in the world. This mine was the leading global tungsten producer for more than 40 years, and it has the potential to produce 50% of the world’s tungsten supply. The project has become a center of focus recently for resource experts, miners, investors, shareholders and other interested parties around the globe.
Without access to rare-earths, the consequences of a continued strained supply of these metals would be disastrous to the U.S. economy, particularly during the COVID-19 pandemic. Opening the supply chain for these rare-earths would help alleviate any supply threats that continue to grow from China and its long-held dominance of the market.
About Almonty
The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain.
The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate.
The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp.
Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain.
Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.
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Disclaimer for Forward-Looking Statements
When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.
Forward-looking statements in this press release include, but are not limited to, statements regarding the expected use of proceeds of the Debenture Offering. The forward-looking statements and information in this press release include information relating to the intentions of management. Such statements and information reflect the current view of Almonty with respect to risks and uncertainties that may cause actual results to vary. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the receipt of all required approvals, unanticipated costs and expenses, general market and industry conditions and perational
risks, including large project risk and contractual factors, any specific risks relating to fluctuations in the price of ammonium para tungstate (“APT”) from which the sale price of Almonty’s tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty’s operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty’s business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty’s shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty’s tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty’s mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty’s mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules of the TSX.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, the receipt of all required final approvals, no unanticipated delays in the project financing, no material unanticipated costs and expenses, no material adverse change in general market and industry conditions and no unanticipated material operational risks, including large project risk and contractual factors, no material adverse change in the market price of APT, the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.
Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO DO SO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
For further information, please contact:
Lewis Black
Chairman, President and CEO
Telephone: +1 647-438-9766
E-mail: info@almonty.com
The head office of Almonty is:
100 King Street West
Suite 5700
Toronto, Ontario
M5X 1C7
