Critical Mineral Supply Chain Clarity Behind Tungsten Deal

Tungsten miner Almonty has announced a deal with Rwanda’s government to process tungsten within the African country in exchange for an exploration licence. 

As part of the terms of the deal, the Rwandan government will receive a 25% share in Almonty’s local Rwandan subsidiary. In return, the Rwandan government will provide a mineral processing licence, along with a tungsten exploration licence, Shyorongi. 

During the initial stages of the project, Almonty will source ore and pre-concentrate from local artisanal miners as well as domestic licence holders.

Lewis Black, Chairman, President and Chief Executive Officer of Almonty, said: "The most immediate opportunity here is the material that is already being produced.” 

“Rwanda's small-scale license holders are producing ore, pre-concentrate and panning tailings today, and this agreement allows us to collect, upgrade and export that material while we build out the collection and processing plant.”

The company will also deploy a mobile tailings processing unit to extract additional material from local tailings. Almonty notes that this will allow the partnership to access material from Rwanda's existing production base in the near term, rather than delaying the project until material becomes potentially available from future exploration at the 32 square kilometer Shyorongi block.

Almonty plans to develop a centralised processing facility during a subsequent phase. This will be subject to reaching a binding investment and development agreement with the government of Rwanda.

US Supply Chain Rules

One of the major drivers of the agreement is the forthcoming introduction of stringent traceability rules for a number of critical raw materials within the US. 

With effect from 1 January 2027, the US Defense Department will introduce strict traceability rules on imports of specified tungsten materials from covered foreign nations. This is intended to prevent the import of tungsten produced or refined in China, Russia or North Korea. Such rules will apply across the supply chain and include the mining or production of the tungsten ore or feedstock. 

This is one of the developments that is increasing commercial interest in traceability solutions for critical raw materials, as the rules also apply to other critical raw materials. 

“This is part of our ongoing strategy to find shorter-term solutions to the widening supply deficit in the West. That program is being undertaken at the request of the Western tungsten industrial base, and we are pursuing several avenues. This is the first of them," Lewis said.

Rwanda’s importance as a tungsten producer

The tungsten market is heavily dominated by China, which accounts for almost 80% of the global supply of tungsten. 

The supply of tungsten, which is an important input for a number of high-end manufacturing and electronics applications, was heavily disrupted in February 2025 when China's Ministry of Commerce (MOFCOM) and General Administration of Customs (GAC) imposed export controls on 25 rare metal products, including tungsten and molybdenum. 

 As a result, the US has developed closer relationships with a number of critical raw materials producers. Rwanda’s tungsten sector is of particular interest to the US, given its status as the only African country among the world's ten largest tungsten producers. 

The US signed a bilateral framework with Rwanda, the US-Rwanda Framework for Shared Economic Prosperity, as well as the Regional Economic Integration Framework of the Washington Accords for Peace and Prosperity.

Meet the tungsten producers

Masan High Tech Materials wholly owns the world’s largest tungsten mine located outside China, the Nui Phao Mine. Masan High-Tech Materials is also one of the world’s largest processors of tungsten raw materials with primary smelting/refining technology located in Thai Nguyen, Vietnam. 

Plansee Group - The Plansee Group owns one of the largest tungsten mines in Europe, as well as significant US based tool manufacturing and tungsten recycling operations. Wolfram Bergbau is a European leader in tungsten mining, operating one of the most significant tungsten mines in Mittersill, Austria.  

Sandvik - Sandvik is a major processor of tungsten scrap and producer of secondary tungsten material through its Sandvik Coromant business division. Sandvik’s extensive tungsten scrap recycling operations are an increasingly critical part of Western supply strategy.   

EQ Resources is an increasingly important tungsten producer outside China. EQ Resources has expanded its resource base since 2023, acquiring the Barruecopardo tungsten mine in Spain, as well as expanding its Mt Carbine operation in Australia.