RE: A Hard Opportunity - Mining Journal8 May 2026 10:37
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However, in Australia, Greatland Resources said it has the balance sheet to be patient and map out the best value proposition for shareholders in relation to its O'Callaghan's tungsten asset near its major Telfer gold operation in Western Australia.
Speaking on a March quarter conference call last week, Greatland management said the company could "optimise (O'Callaghans) for medium- to long-term value".
While all options are on the table, from full to partial divestment to joint venturing or spinning the asset out into a separate vehicle, Greatland is unlikely to develop the asset in its own right, given it will have plenty on its plate with the development and operation of a second gold mine at Havieron.
In the UK, Strategic put out new tin assays from Redmoor, its exploration-stage tungsten project in Cornwall, this week.
And it's not just about the opportunity for exploration-stage projects. The squeeze in tungsten supply has also affected the ops side of the industry, with equipment suppliers feeling the pinch.
For those like Sandvik, which has its own tungsten supply chain, the geopolitical shocks are not a factor. But it does beg the question of whether more equipment suppliers will look to vertically integrate.
Tungsten prices have risen to a point where, at some stage, it won't be able to be passed on to customers - which may even be the very miners looking to develop a tungsten mine.
"We are seeing competitors not being able to supply due to raw material constraints, and then they come to us instead, and they want a reliable supplier, meaning there is also a market share impact here where customers simply want to secure that they have supply," Stefan Widing, chief executive of Sandvik, told our sister publication, Mining Magazine, last month.
Widing also noted that China is experiencing a tungsten shortage, partly driven by output from mines being down, as well as depleting ore grades and other dynamics.
Sandvik's chief financial officer and executive vice president, Cecilia Felton, added colour to the tungsten dynamics: "If you are a mid-market player, you will likely need to increase your prices more in relation to your current price, which of course then is a favourable dynamic for us and our premium cutting tools brands."
"For the cutting tools, there's a nine-month lag, three months coming from powder, when the raw materials in the powder business are getting processed and then an additional six months as part of the inventory turnover time for the cutting tool brands."
"So the raw material costs that we are seeing now in Q1 are related to nine months back," she added.
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