Key Minerals: Reuters Exclusive: Western Countries Concerned About Vietnam's Tungsten

Reuters reported exclusively on the 27th, citing sources who said that U.S. and other Western officials are closely monitoring a tungsten mine and refinery in Vietnam, worried it may be acquired by China.

Five sources said that the Nui Phao mine located in northern Vietnam is owned by Masan High-Tech Materials, a subsidiary of the Vietnamese Masan Group, which has expressed interest in selling the asset.

Reuters cited an individual familiar with the discussions who revealed that two Chinese companies have approached two foreign companies, requesting them to act as agents to bid for shares in the business.

Reuters said it interviewed nine people for this report, most of whom requested anonymity due to the sensitivity of the topic. Therefore, Reuters was unable to confirm whether there have been any specific bids for tungsten products, mines or refineries.

Masan Company and the U.S. Embassy in Hanoi both declined to comment. The Vietnamese Ministry of Natural Resources and Environment (responsible for regulating mining licenses) and the Chinese Foreign Ministry also did not respond to requests for comments.

"Visits" to Show Support

According to sources, over the past few months, an American diplomat and other Western officials have visited the Nui Phao mine multiple times.

One official said these visits were aimed at "expressing support," adding, "The West has a strong interest in keeping tungsten supply from being controlled by China."

The Nui Phao mine is one of the largest outside of China. According to data from the USGS, the mine produces about 3,400 metric tons of tungsten per year, almost all of Vietnam's output, making Vietnam the second-largest tungsten producer in the world last year, behind only China.

The affiliated refinery at the mine is also one of the largest outside of China, with an annual capacity of 6,500 tons, producing various tungsten products subject to Chinese export restrictions, including oxides and ammonium paratungstate (APT).

Andrew Golosinovski, former Australian ambassador to Vietnam and consultant at EQ Resources, said, "It would be a concern if such an important refining operation were sold to an entity inconsistent with Western industrial interests." His company processes all of its tungsten ore production in Masan's refinery.

Geopolitical Strategy and Market Volatility

Tungsten is an extremely hard metal, classified as a key mineral due to its use in defense and electronics industries (including ammunition and semiconductors).

In 2024, China dominated tungsten production with 83% of global output. In February of this year, China imposed restrictions on tungsten exports, requiring companies to obtain licenses before shipping.

According to Chinese customs data, since February, the export volume of various tungsten products from China has sharply declined, and has only partially recovered since then. Tungsten exports in July were 17% lower than in January.

This led to a surge in the price of ammonium paratungstate to a record high. According to information provided by China Tungsten Industry Consulting, the price of ammonium paratungstate in China has risen by 71% compared to the beginning of the year, and by 52% in Europe.

According to data from the mineral consulting firm Project Blue, Vietnam's tungsten accounted for 22% of the U.S. import total last year, and 8% of the European import total.

Masan has been trying to make the complex profitable, and this business is not part of its core food processing and retail operations. The company sold its tungsten business subsidiary in Germany last year.

At the same time, relations between Washington and Hanoi have become increasingly tense. Officials revealed that this month, President Trump imposed a 20% tariff on Vietnamese goods without reaching a final agreement with Hanoi. He also threatened to impose more tariffs and refused a request to meet with the top leader of Vietnam.

Additionally, permits for tungsten items will expire in the coming years, complicating the issue further. The mine's permit expires in early 2028. One source pointed out that delays in renewal could force the refinery to scale down operations before the current license expires.

Original: www.toutiao.com/article/1841781593907272/

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