What's Happening?
A London-based company, Guardian Metal Resources Plc, is set to commence tungsten mining operations in Nevada by 2028. This development comes as the U.S. seeks to establish a domestic source for tungsten, a critical metal used in defense products, amid Chinese export restrictions. The Defense Department has awarded Guardian Metals $6.2 million for a pre-feasibility study at the Pilot Mountain site in Nevada. The study aims to assess the technical and financial viability of the project, with the goal of starting production before the current administration leaves office. Guardian Metals also plans to restart operations at the Tempiute Project, another tungsten site in Nevada, which was once the largest tungsten mine in North America.
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Why It's Important?
The establishment of a domestic tungsten source is crucial for the U.S. defense industry, as tungsten is essential for manufacturing armor-piercing munitions, missiles, and other defense systems. Currently, the U.S. relies heavily on imports, with 86% of tungsten production coming from China. The new mining operations could reduce dependency on foreign sources and enhance national security. Additionally, the project could create jobs and stimulate economic growth in Nevada. The Defense Department's investment reflects the strategic importance of securing a stable supply of critical minerals for defense applications.
What's Next?
Guardian Metals plans to complete the pre-feasibility study by the first half of 2026, followed by a bankable feasibility study by the end of the year. The company aims to start tungsten production before the end of the current administration. Guardian Metals is also exploring options to expedite the timeline for extracting tungsten from stockpiles at the Tempiute Project. The company has a letter of intent with Global Tungsten & Powders to process the mined tungsten, and it may collaborate with other processors or the Defense Logistics Agency for stockpiling.
