Zhangyuan Acquired Mining Rights to Huangzhulong Tungsten Deposit

Major Chinese tungsten producer Chongyi Zhangyuan Tungsten has acquired mining rights to the Huangzhulong tungsten deposit in the southern province of Jiangxi, with a mining license area of 0.6123 square kilometyers, valid until December 21, 2021.

Zhangyuan paid 2.13mn yuan ($301,700) for the rights to the deposit in Chongyi county, which are valid until 12 December 2021. The deposit is estimated to contain 1,274t of tungsten trioxide and 338t of copper.

The company can meet a third of its tungsten concentrate demand through in-house production from five mines. It also purchases tungsten concentrate and ammonium paratungstate (APT) feedstocks from other producers through twice-monthly and spot bids.

Zhangyuan sold 213t of tungsten oxides in 2019, down by 12.1pc from the previous year.

Sales of ammonium paratungstate fell by 16.6pc to 351t over the same period, while cemented carbide sales dropped by 7.6pc to 1,579t. The firm's sales of tungsten powder and carbide rose by 91.3pc to 2,428t and by 14.5pc to 3,508t respectively.

Zhangyuan the capacity to produce 1,500 t/yr of cemented carbide, 10,000 t/yr of APT, 8,000 t/yr of tungsten powder and 6,000 t/yr of tungsten carbide.

As determined by the Jiangxi Provincial Department of Land and Resources, within the scope of the tungsten mine mining license, as of December 31, 2019, 122b+333 resource reserves were retained: 88.53kt of ore; metal amount: 1,274.01t of WO3 and 338t of Cu. Among them, economic basic reserves controlled by tungsten mine (122b): 16.49kt of ore; metal amount: 223.01t of WO3, inferred intrinsic economic resource (333): 72.04kt of ore; 1.051t of metal; associated copper inferred economic resources of the mine (333): 88.53kt of ore and 338t of Cu. 

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