Tungsten Mining (ASX:TGN) is advancing mining approvals and preparing for an early stage production at the Hatches Creek Project in the Northern Territory.
A mining management plan and mining licence application has been lodged to the Department of Environment, Parks and Water Security and the Department of Industry, Tourism and Trade of the Northern Territory Government, respectively.
Tungsten Mining, which has a market capitalisation of $67.38 million, says the early production pathway options being considered is under a two staged approach.
Stage one comprises processing stockpiles left from historical mining, while stage two comprises mining and processing tungsten-copper from the pending resource estimate.
A maiden resource estimate for the project is currently underway, which will help the company assess the potential for early-stage production.
Tungsten Mining notes the outcome of the resource is crucial in determining a pathway to early production, leveraging the market demand for tungsten.
According to Tungsten Metals Group, the global demand for tungsten is continuing to rise driven by the semiconductor, electronics, and defence sectors.
The metal’s demand is also driven by the new US Department of Defense regulations prohibiting the use of China-mined tungsten after January 2027, which further increases the demand for alternative sources, such as in Australia, Kazakhstan, and Spain.
China currently produces about 80% of the world’s tungsten supply, making its decision on export restrictions highly consequential for the rest of the world, as reported by Tungsten Metals Group.
Tungsten is considered a critical metal that is used in electrodes, heating elements, and field emitters, as well as filaments in light bulbs and cathode ray tubes.
Write to Aaliyah Rogan at Mining.com.au
Images: Tungsten Mining
