This article is a sponsored feature from Mining.com.au partner Western Star Resources. It is not financial advice. Talk to a registered financial expert before making investment decisions.
According to Blake Morgan, CEO of Western Star Resources (CSE:WSR), the price of tungsten has increased by a dramatic 500% over the last 12 months, and supply is at a critical low. These figures come at a time when demand for the metal has reached unprecedented levels.
With China controlling a staggering 83% of global tungsten reservoirs — and a rising need for the resource — Western Star has responded by acquiring a past-producing tungsten mine in Nevada, US, while considering further avenues to stabilise supply.
Old mine, new mission
North America currently possesses no active, past-producing tungsten properties, making the Western Star project in Nevada a one of a kind. The existing infrastructure and known deposit were a driving force behind the company’s acquisition of the mine.
“We saw a niche in the market, and we knew that in the ‘40s, ‘50s, and ‘70s, Nevada was the place for tungsten in North America,” Morgan comments.
The Nevada mine was abandoned in the aftermath of WWII in response to a reduced demand for the metal. In the ‘70s it was reclaimed but was again deserted when China’s large-scale and low-cost exports decreased tungsten prices. However, the fact that the mine was lying dormant is by no means indicative of the quality of the deposit. With a 3.38% tungsten concentration, approximately 15 times higher than the average 0.3% at most US sites, the Nevada tungsten mine is extremely ‘high grade’.
“We know the grade is there and we know that it used to produce, now it’s time to see how big it is,” Morgan says.
Reinstating the existing mine will cut down company costs and workload, while reducing environmental impacts through less exploratory drilling. It allows Western Star to focus its attention on a concentrated area and capitalise on what is there, pursuing the notion of working ‘smarter not harder’.
“We know there’s a strong deposit there. Is it a district-scale resource or a small-scale mine? We’re not sure yet, but right now it looks absolutely phenomenal,” Morgan shares.
Upcoming exploration and expansion
Next on the agenda for Western Star is to do a model exploration, before using modern site investigation methods to expand the resource. Once the supply is mapped out, the company plans to use geophysics, channel sampling, and targeted drilling as means to capitalise on the commodity.
Morgan shares that Western Star has designs to join the US Defense Metal Consortium and travel to Washington in May to investigate potential grants with government officials. This comes at a time when the Department of Defense and the US Government are allocating funding to tungsten exploration in North America.
“In the last month, they have given out more than $30 million. And, lucky enough for us, we are in North America with a past-producing mine which has a lot of promise,” Morgan says.
He shares that the aim is to prove the scale of tungsten, before acquiring government or major company investment, and restart operations within the next 12–24 months.
Although Western Star is one of the younger players in the tungsten market — with a market cap of approximately $20 million, compared to that of other tungsten producers who usually sit at around $100–200 million — Morgan is confident about the company’s future: “We have a really good property, which is exciting”.
Not only is Western Star expanding its Nevada project, but they also have exclusivity rights on multiple other past-producing tungsten mines. Although this news was announced previously, Morgan reveals that the plans have been evolving and that the company has been completing due diligence in procuring these mining sites.
“We’re in a good position with one past producer, but we would be in an even better position with four or five of them. And that is something that no one else has,” Morgan says.
News on the acquisition of these sites is expected in the next two to six weeks.
Tungsten market surges: What’s the driving force?
Tungsten’s extremely high-melting point, resilience, and density make it a commodity which is utilised and relied on heavily across multiple industries. But what is the driving force behind the current surge and the investment of huge sums of money into its future?
There are a few reasons. Firstly, Morgan says that there is no known substitute that comes even close to competing with the durability of tungsten. He continues: “It’s basically unbreakable to a degree, and nothing else really comes close. There are a few other metals people experiment with, but price wise, refining them is nearly impossible.”
Another contributing factor to the surge in tungsten demand is resulting from changes in the US defence legislation. As of January 2027, there will be a ban on tungsten being sourced from China and Russia for defence functions. This has been designed to mitigate reliance on foreign countries and guarantee that tungsten used in military applications meets quality standards.
Currently, China owns 83% of tungsten supply. As tungsten is relied on heavily for military applications and aerospace, rising global conflict has driven demand from Western nations. This ban, in turn, has created a noticeable supply gap, which is why the US Government is turning its attention to investing money into the future of a domestic tungsten supply.
Tungsten is a highly versatile metal. Not only is it deployed in defence and aerospace, but it is also used broadly across other industries. It is often a key commodity within renewable infrastructure, electronics, medical equipment, and mining tools. Morgan says that tungsten prices are currently sitting at $2,800, up substantially from around $500 in the last year.
The Nevada tungsten mine is just the beginning of Western Star’s voyage into the critical metals sector. With their sights set on supplying a gap in the market and further properties under due diligence, the company is setting itself up to meet rising tungsten demand across multiple sectors.
“So, Tungsten is the go-to. And look, I think you’re going to see tungsten prices over this year reach the same as gold. I don’t see it stopping. There is nothing like it,” Morgan says.
Write to Delila Bevan Zavadsky at Mining.com.au
Images: Western Star Resources
