The United States Will Resume Production of Large Tungsten Ore (2)

It is understood that there are four deposits in the Perette tungsten mine: desert dolomite, gunmetal, garnet and hope. The total reserves of the tungsten ore are 17.5 million tons and the grade is 0.28%, with associated lithium, copper and silver. The major minerals are tungsten and lithium. 

pilot mountain tungsten ore image

So how much will the tungsten mine in the Pratt Hills affect China tungsten industry? According to China tungsten online tungsten and molybdenum experts analysis, the impact may not be large. There are three main reasons:

First, the mining costs of the Peltatuan tungsten mine may be very high. The area is sparsely populated and has no infrastructure. If the scale is exploited, the manpower costs in the United States and the supporting infrastructure will be unavoidable. While Raytheon's current financial position does not seem optimistic, capital network analyst Sam at the end of June said in a commentary that Raytheon's cash position was about A $ 200 million, but the company may need further financing.

Second, the mine is overly optimistic about Trump's resurgence of U.S. heavy industry policy. At present, the world's manufacturing center is shifting from the United States to China. In addition to the military and aerospace industries, the demand for tungsten and molybdenum from the general industry in the United States is constantly shrinking. 35% of the tungsten in the U.S. market comes from the recycling of waste tungsten products, decreasing market demand year by year. In the future, China's demand for tungsten will be higher than that of the United States. If a mine wants to survive, it must expand its production to reach a balance of payments, but if there is no cost advantage, the Americans who negotiate business will not necessarily buy it. If the mine wants to survive, it may still be expected to be built in China.

Thirdly, the persistence of the policy is unknown. When the president of the United States changes from president to president in four or eight years, the president changes just as the season turns hot and cold. As soon as Trump takes power, he overthrew many of his predecessors' policies. So who is the next president and what will he do? Who knows. The fact that Obama's refusal to subsidize Molycorp in 2015 led to the bankruptcy of the only rare earth producer in the United States, while Trump seems to have used the Pratt & Whitfield tungsten mine as "spare strategic" for the moment, tungsten mine has not been mined in the United States for 22 years. The entire tungsten mining system has basically been abandoned and the cost is bound to be even greater. It is difficult to survive without government support. Australians themselves are not sure what the next president will be. In any case, it is not the first time for U.S. politicians to unload and kill donkeys.

To sum up, the exploitation of the Pilot mountain Tungsten Mine may affect the export of Chinese tungsten ore to the United States in the near term. However, unless the price of tungsten ore persists for a long time, the operation of the mines will easily get into a dilemma. However, as a foreigner, it is even more delightful that the United States exploits their own tungsten and rare earths and also expects that the Peltatus tungsten mine can be exported to China in the future.

 

 

WeChat