China Tungsten & Hightech Soar After Securing 154,500 Tons of Rare Metal

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Shares of China Tungsten and Hightech Materials surged after the company announced that a shareholder had injected a mining asset with proven reserves of approximately 154,500 tons of a rare gray-silver metal.
Today, the company’s stock closed up 8 percent at 20.46 Chinese yuan (equivalent to $2.87 USD) per share, while the broader Shenzhen market increased by 1.5 percent.

A major stakeholder, Minmetals Tungsten Industry Group, will transfer its nearly 99.97 percent ownership in Hengyang Yuanjing Tungsten into China Tungsten and Hightech for a total of 821 million CNY (around $112.48 million USD), including taxes, the company announced late yesterday.
Minmetals Tungsten is the second-largest shareholder, and both companies are overseen by the mineral resources conglomerate China Minmetals.

Hengyang Yuanjing possesses tungsten mining rights in Hengyang, located in central Hunan province, according to an official geological exploration report. The mine contains roughly 40.36 million tons of tungsten ore with an average grade of 0.4 percent, as of the end of May, and has an annual tungsten concentrate capacity of 2,600 tons.

In December, China Tungsten and Hightech took over the Shizhuyuan Tungsten Mine — the largest tungsten mine globally — from Minmetals Tungsten. This mine holds proven reserves of 500,000 tons, representing about 12 percent of the world’s total, with an annual tungsten concentrate capacity of 8,000 tons.

Based in Zhuzhou, the company reported that its tungsten concentrate output exceeded 4,200 tons in the first half of this year, with cemented carbide production surpassing 7,500 tons. It also manages the daily operations of four additional mines owned by Minmetals Tungsten through entrusted management agreements.

China Minmetals initially stated in 2017 that it planned to gradually transfer its integrated tungsten mining and processing assets into the company, aiming to establish it as a global leader in the comprehensive supply chain. Four other tungsten mines remain in the process of integration.