MINEX Forum

Tag: China

  • Tungsten Price Surge Highlights Supply Crisis and Future Demand Challenges

    Tungsten Price Surge Highlights Supply Crisis and Future Demand Challenges

    The tungsten market is experiencing a significant price surge, with prices increasing by 310% from January to July 2026, driven by Chinese export controls and rising military demand. According to a recent report from S&P Global, global first-use tungsten demand is projected to rise from approximately 162,000 tonnes of WO₃ in 2025 to 180,000 tonnes by 2030 and 202,000 tonnes by 2035. China remains the dominant player in the tungsten market, having produced 67,000 tonnes of the total 85,000 tonnes mined globally in 2025 and controlling about 85% of APT refining capacity.

    Despite the announcement of 11 new projects that could add about 20,000 tonnes of annual mine capacity outside China by 2030, S&P Global estimates a primary mine supply gap of 16,000 tonnes ex-China by 2030. This gap is concerning, especially as the price of tungsten APT has surged from approximately US$83/kg WO₃ in January 2026 to US$340/kg in July 2026. While the price increase has surpassed the theoretical investment hurdle for new supply, the real challenge lies in the development bottlenecks related to financing, permitting, and construction.

    The report highlights several key projects that could potentially deliver new tungsten supply, including the Sangdong project in South Korea, Hemerdon in the UK, and Northern Katpar in Kazakhstan. However, the timeline for these projects remains uncertain, and their success is contingent upon various factors, including financing and regulatory approvals.

    Tungsten is classified as a critical mineral due to its unique properties, which make it essential for various applications, including defence, industrial tools, and technology. The rising prices reflect a complex interplay of supply chain issues, geopolitical tensions, and strategic stockpiling, particularly in the context of US-China relations. As the US prepares to impose significant restrictions on tungsten imports from certain countries in 2027, the market is likely to face further challenges in meeting demand.

    While the current price levels may incentivise new tungsten supply, the industry faces significant hurdles in terms of project financing and development timelines. The tungsten market is at a critical juncture, with supply constraints likely to persist unless substantial investments and regulatory support are provided to facilitate new production.

  • China Discovers Major Uranium Deposit but Continues to Rely on Kazakhstan Supplies

    China Discovers Major Uranium Deposit but Continues to Rely on Kazakhstan Supplies

    China has announced the discovery of a significant uranium deposit in the Jingchuan area of Inner Mongolia, estimated to contain up to 30 million tonnes of uranium. This find could potentially bolster China’s domestic resource base for nuclear energy, reducing its reliance on foreign supplies in the long run. However, despite this promising discovery, China remains one of the largest purchasers of uranium from Kazakhstan, accounting for 44% of Kazatomprom’s revenue from natural uranium sales in 2025.

    Kazatomprom, Kazakhstan’s national atomic company, reported a revenue of 1.803 trillion tenge for 2025, showing little change from the previous year. The company experienced a decline in net profit, dropping from 1.13 trillion to 807 billion tenge, while the average selling price of uranium fell from $69.5 to $65.3 per pound due to a 14% decrease in the average annual spot price. However, the volume of natural uranium sales increased by 11%, with China being the primary buyer, contributing 797 billion tenge to Kazatomprom’s revenue.

    In comparison, uranium sales to the United States rose from 143 billion to 204 billion tenge, while sales to Russia decreased from 253 billion to 218 billion tenge. China’s interest in Kazakhstan’s uranium extends beyond mere purchases; Chinese entities are actively participating in several uranium projects within Kazakhstan, including the Zarichnoye and Khorasan-U projects, the latter located in the Kyzylorda region and notable for its Chinese involvement.

    Kazakhstan’s status as a leading global uranium producer with one of the largest resource bases makes it a crucial partner for China. Despite a decrease in net profit and average selling prices, Kazatomprom’s operational cash flow increased from 516 billion to 810 billion tenge in 2025. Shareholders received dividends of 1,264 tenge per share, up from 1,213 tenge the previous year, while capital expenditures rose from 190 billion to 256 billion tenge. Additionally, the uranium extraction tax in Kazakhstan increased from 6% to 9% as of January 2025, with a differentiated scale based on extraction volumes and uranium prices set to be implemented in 2026.

  • Uzbekistan and China Set Ambitious $30 Billion Trade Target Amid Strengthening Economic Ties

    Uzbekistan and China Set Ambitious $30 Billion Trade Target Amid Strengthening Economic Ties

    Uzbekistan and China are moving to deepen cooperation across mining, mineral processing, and nuclear energy, as President Shavkat Mirziyoyev and Chinese President Xi Jinping discussed a broader economic partnership at the Shanghai Cooperation Organization summit in Bishkek. Alongside a shared ambition to raise bilateral trade from roughly $18 billion last year to $30 billion, the two leaders singled out mining and the extraction and processing of mineral resources as priority areas for expanded industrial cooperation.

    The resource-sector focus sits within a much larger investment relationship: an estimated $60 billion in ongoing joint investment projects and more than 6,000 joint ventures are already active in Uzbekistan. Metallurgy was named specifically among the priority industrial sectors, alongside energy, chemicals, and high technologies — a signal that Chinese capital and technical expertise are expected to flow further into Uzbekistan’s mining and metals value chain, from raw extraction through to processing and downstream materials.

    On the nuclear side, Uzbekistan reiterated its intent to attract Chinese companies into peaceful nuclear energy projects, positioning this alongside conventional and renewable power as part of a broader energy diversification strategy. This comes as Tashkent has been actively courting international partners for both large-scale and small modular reactor projects, and China’s inclusion in that mix points to growing competition among global nuclear vendors for a foothold in Central Asia’s emerging civil nuclear market.

    Supporting infrastructure for these ambitions is also advancing: the China-Kyrgyzstan-Uzbekistan railway, currently under construction, is expected to strengthen Eurasian transport connectivity under the Belt and Road Initiative — a corridor that would also serve as a logistics backbone for moving mined and processed materials to Chinese and regional markets.

    Taken together, the mining and nuclear commitments reflect a shift in the Uzbekistan-China relationship beyond trade volumes and consumer manufacturing (such as the BYD electric vehicle partnership) toward deeper integration in resource extraction, materials processing, and energy security — areas where China’s demand for critical minerals and Uzbekistan’s mineral wealth and nuclear ambitions increasingly align.

     

  • Kazatomprom Plans Major Uranium Sales Agreements

    Kazatomprom Plans Major Uranium Sales Agreements

    Kazatomprom, Kazakhstan’s national atomic company, is set to convene an extraordinary general meeting of shareholders to discuss two significant uranium sales agreements and a potential change in its board of directors. The first agreement involves the sale of natural uranium concentrates in the form of U3O8 to the Chinese company State Nuclear Uranium Resource Development Company Limited (SNURDC). This deal includes physical delivery to the Alashankou railway station in China. SNURDC, a subsidiary of the State Power Investment Corporation Limited (SPIC), is responsible for uranium supplies and has a state license for importing natural uranium concentrates in China. Kazatomprom’s commercial proposal was accepted by SNURDC, leading to the drafting of a spot purchase agreement for the uranium concentrate. However, details regarding the volumes, timelines, and pricing of the transaction remain undisclosed due to confidentiality agreements.

    The second agreement pertains to the sale of natural uranium in the form of U3O8 to Uranium One Group, with physical delivery to the Siberian Chemical Combine in Russia. Uranium One Group is a major operator of foreign uranium mining assets under the Russian state corporation Rosatom and is also a participant and shareholder in joint ventures with Kazatomprom. Similar to the first deal, the specifics of this contract, including pricing and delivery schedules, are kept confidential, with Kazatomprom asserting that the terms align with current market conditions.

    In addition to the sales agreements, the extraordinary meeting will address a proposed change in the board of directors. This follows the appointment of board member Elzhas Otynshev, who represents Samruk-Kazyna, to the position of chairman of Kazakhstan Temir Zholy, necessitating the early termination of his board membership. The proposal includes appointing Zhandos Kairgeldy, currently the managing director for strategy and asset management at Samruk-Kazyna, as his replacement. All three agenda items will be discussed at the upcoming shareholders’ meeting. Notably, Kazatomprom recently launched the first phase of a uranium mining complex at the Jalpak mine in the Turkestan region, with an annual capacity of 500 tonnes of uranium.

  • Kazatomprom Announces Extraordinary Shareholders Meeting to Discuss Major Uranium Supply Contract

    Kazatomprom Announces Extraordinary Shareholders Meeting to Discuss Major Uranium Supply Contract

    Kazakhstan’s national atomic company, Kazatomprom, has announced an extraordinary general meeting of shareholders, with a significant agenda item concerning a major contract for the supply of natural uranium in the form of U3O8. While specific details of the agreement remain undisclosed, it has been confirmed that the deliveries are intended for the international group of companies, Uranium One, which is part of the Russian state corporation Rosatom. This move underscores Kazatomprom’s ongoing strategic partnerships in the uranium market, particularly with Russian entities.

    In addition to the contract with Uranium One, Kazatomprom has also disclosed the signing of a spot purchase agreement for natural uranium concentrates with the Chinese company, State Nuclear Uranium Resource Development Company Ltd. This dual engagement highlights Kazatomprom’s proactive approach in securing contracts with both Russian and Chinese firms, reflecting the growing demand for uranium in the global energy sector.

    Kazatomprom’s initiatives are crucial as the world increasingly turns to nuclear energy as a cleaner alternative to fossil fuels. The company’s ability to navigate and establish these international contracts positions it as a key player in the uranium supply chain, which is vital for the nuclear power industry. The upcoming shareholders meeting is expected to provide further insights into Kazatomprom’s strategic direction and its role in the global uranium market.

  • Azerbaijan Aims to Elevate Aluminum Industry Through Strategic Partnerships

    Azerbaijan Aims to Elevate Aluminum Industry Through Strategic Partnerships

    Azerbaijan is positioning its aluminum industry as a cornerstone of its industrial diversification strategy, particularly through recent discussions with China’s Xinjiang Joinworld Co., Ltd. While Azerbaijan already boasts an established aluminum sector, led by Azeraluminium as the only primary aluminum producer in the South Caucasus, the focus of these talks extends beyond mere production increases. The discussions aim to leverage foreign technology, investment, and expertise to enhance the existing industrial capacity, thereby elevating the country’s position in the global industrial value chain.

    Economy Minister Mikayil Jabbarov highlighted that the collaboration with Xinjiang Joinworld is centred on joint projects that incorporate modern technologies and innovative solutions. This approach signifies a shift from merely increasing aluminum output to developing advanced capabilities that can produce higher-value products. The potential for Azerbaijan lies in transforming raw aluminum into products such as sheets, rolled products, and specialized alloys, which can significantly boost industrial value compared to exporting basic aluminum.

    Azerbaijan’s existing foundation for this expansion includes previous modernization efforts aimed at increasing production capacity and developing rolled aluminum products. Past collaborations with German technology partners have also focused on enhancing production and processing capabilities. The ongoing discussions with Chinese firms, including Wanji and Sunstone, indicate a strategic exploration of various segments within the Chinese industrial ecosystem, rather than a singular investment focus.

    The benefits of these partnerships extend beyond foreign capital; technology transfer is crucial. Modern metallurgical production demands sophisticated equipment and process management, and partnerships with experienced international companies can expedite the development of these capabilities domestically. Additionally, Azerbaijan has already established aluminum as a significant non-oil export, with over 40,500 tons exported in 2022, valued at $114 million. The country is now aiming to shift towards higher-value processed products.

    This strategy aligns with Azerbaijan’s broader economic diversification goals, utilising its strengths in energy, infrastructure, and logistics to create new revenue streams. Given that aluminum production is energy-intensive, Azerbaijan’s energy resources offer a competitive edge. The country’s strategic location along the Middle Corridor, which connects China and Europe, further enhances its potential as a manufacturing hub for regional markets, including Türkiye and Central Asia.

    The development of the Western Industrial Park underscores Azerbaijan’s commitment to deeper processing and stronger connections between raw material extraction and manufacturing. However, while discussions with Xinjiang Joinworld are promising, concrete details regarding investment size, production capacity, and timelines are still pending. The true economic impact will only be realised if these discussions culminate in a tangible joint venture and production plan.

    Ultimately, the key question for Azerbaijan is not why it needs China, but how it can synergise its existing industrial base with international technology and investment to produce more sophisticated and valuable aluminum products. This could mark a significant evolution in Azerbaijan’s aluminum narrative, transforming it into a vital player in the global market.

  • China’s Ambitious Plans for a New Gold Hub in Hong Kong

    China’s Ambitious Plans for a New Gold Hub in Hong Kong

    This summer marked a significant shift in the global gold market as Hong Kong initiated trial trading under a new centralized settlement system for precious metals. This development is poised to alter the dynamics of gold trading worldwide, as China continues to establish a sovereign mechanism for trading and settling transactions in physical gold. In January 2026, the Hong Kong government and the Shanghai Gold Exchange signed a cooperation agreement to create a government-owned entity, the Hong Kong Precious Metals Centralized Settlement Company, known as ‘Gondzin Settlements’. This system offers a comprehensive range of gold-related services, from the deposit and withdrawal of physical gold to the settlement of transactions, including over-the-counter deals.

    The Gondzin Settlements system is seamlessly integrated with a network of certified vaults, allowing for efficient management of both cash balances and physical gold operations. A massive certified vault capable of holding 2,000 tonnes of gold is set to be constructed in Hong Kong, significantly surpassing the UK’s gold reserves, which were approximately 310 tonnes this spring. Establishing such a vault is a complex task, requiring robust physical security and risk management systems, but China appears undeterred.

    The urgency of establishing a gold hub in Hong Kong has been amplified by recent geopolitical tensions, particularly the ongoing conflict in the Persian Gulf, which has threatened the stability of existing gold trading hubs in the United Arab Emirates. Experts suggest that the creation of the Hong Kong gold hub is part of a long-term strategy by Beijing to enhance the yuan’s status as a global reserve currency, backed by physical gold, reminiscent of the Bretton Woods system.

    Interestingly, the recent five-year socio-economic development plan for Hong Kong, which extends to 2030, notably omits any mention of the gold hub, raising questions about its future integration into the broader economic strategy. The system also offers clients the option to operate through ‘unallocated’ accounts, allowing for faster transactions without the need to physically move gold bars.

    In partnership with the Shanghai Gold Exchange, the ‘Delivery Connect’ service has been launched to facilitate cross-border transactions and gold movement between Hong Kong and mainland China. The Gondzin Settlements has become an international member of the Shanghai Gold Exchange, enabling market participants to store physical gold in designated warehouses in Hong Kong, ensuring its free movement.

    China is effectively creating its own ecosystem for precious metal trading, attracting participation from major global banks, including JPMorgan, HSBC, and UBS. One potential outcome of this system is the decoupling of gold prices from the traditional London fixing, which has been dominated by the London Bullion Market Association (LBMA) for the past decade. The Hong Kong hub is being positioned as an alternative to London, with the potential to establish its own pricing mechanism if it achieves sufficient trading volumes.

    The status of ‘Good Delivery’, a standard set by the LBMA for gold and silver bars, is also a topic of interest. Currently, only bars from refineries with Good Delivery status are accepted in the new Chinese system, but there is potential for Gondzin Settlements to develop its own standards in the future. This ambitious Chinese initiative increases the demand for gold imports, particularly from Russia, which has seen a significant rise in gold exports to Hong Kong, from under $1 billion in 2022 to $10.8 billion last year. This trend not only reflects rising gold prices but also growing physical volumes.

    The establishment of the Hong Kong gold hub opens up new avenues for Russian companies and banks, particularly in circumventing sanctions through alternative payment methods. Despite Western threats of secondary sanctions, China has not turned away from Russian gold, indicating a complex interplay of geopolitical and economic factors that will shape the future of the global gold market.

  • China Introduces Hard Pure Gold: A Revolutionary Advancement in Gold Jewelry

    China Introduces Hard Pure Gold: A Revolutionary Advancement in Gold Jewelry

    China has unveiled an innovative form of 24-carat gold known as Hard Pure Gold (硬足金), a metallurgical breakthrough that combines the purity of traditional 24-carat gold with the hardness and durability of lower-carat alloys. This new material has rapidly gained dominance in the Chinese jewellery market, thanks to advancements in nanocrystalline engineering and microstructural modifications that fundamentally alter gold’s behaviour at the atomic level.

    Unlike conventional pure gold, Hard Pure Gold maintains a purity of over 99.9% while being up to four times harder than standard 24K gold. It resists scratching, bending, and deformation, all while preserving the deep yellow luster that has long been cherished in Chinese culture. This innovation has transformed the gold jewellery industry, allowing major brands such as Chow Tai Fook, Lukfook, and China Gold to create intricate, lightweight, and durable designs without compromising on investment purity.

    Officially established as a new category of high-purity gold jewellery in May 2025, Hard Pure Gold represents a significant technological advancement in the production of nearly pure (24K) gold that is significantly harder and more durable than traditional 24K gold without reducing its purity. The category has been endorsed by the Ministry of Industry and Information Technology (MIIT) in collaboration with the Chinese jewellery industry and the World Gold Council, aiming to create a global standard for modern high-purity jewellery that combines traditional purity with enhanced mechanical strength.

    This breakthrough is not only a milestone for jewellery manufacturing but also for materials science. By controlling grain size through severe plastic deformation, controlled annealing, and surface hardening, metallurgists have successfully transformed one of nature’s softest metals into a technologically advanced form of pure gold. Hard Pure Gold is defined as jewellery containing no less than 99.0% gold and possessing a hardness of at least 60 HV, achieved through microstructural modifications rather than alloying.

    The introduction of Hard Pure Gold has significant implications for the market and culture. According to the China Gold Association, jewellery made from pure gold now accounts for over 60% of 24-carat gold sales in major Chinese cities. Consumers appreciate its combination of purity, durability, and modern design, while it retains the traditional association of pure gold with prosperity and heritage, appealing to younger buyers seeking lightweight, contemporary styles. The technology also enhances China’s competitiveness in exports, as markets in Singapore, Malaysia, and Japan increasingly adopt products made from Hard Pure Gold.

    Despite its success, Hard Pure Gold faces ongoing challenges, including repair and resizing issues that can alter its microstructure and reduce hardness, confusion in labelling where some sellers mislabel products as ‘hard gold’, and increased production costs associated with advanced processing techniques. To address these challenges, China’s national standard GB/T 18043–2020 now provides clear definitions and testing criteria for verifying Hard Pure Gold products.

    In conclusion, Hard Pure Gold (硬足金) represents a fusion of ancient luxury and cutting-edge metallurgy. By engineering the crystalline structure of gold rather than altering its chemistry, Chinese scientists and jewellers have transformed one of the softest precious metals on Earth into a durable, high-performance, and culturally significant innovation. This development underscores China’s leadership in materials science technology and the evolving future of pure gold craftsmanship.

  • Tajikistan Explores Industrial Collaboration with Chinese Firms on Lithium Processing and Equipment Modernisation

    Tajikistan Explores Industrial Collaboration with Chinese Firms on Lithium Processing and Equipment Modernisation

    In a significant move to enhance its industrial capabilities, Tajikistan’s Minister of Industry and New Technologies, Sherali Kabir, engaged in discussions with leading Chinese companies, including SANY, Huayou, and Bosai Group, during a recent visit to Shanghai. The talks focused on various collaborative projects aimed at modernising Tajikistan’s industrial sector, particularly in the fields of electric machinery production, lithium extraction, and the upgrading of the Tajik Aluminium Plant (TALCO).

    The discussions with SANY revolved around the establishment of manufacturing facilities for electric construction, municipal, and mining machinery within Tajikistan. This initiative is expected to cater to both domestic needs and export markets. The Tajik government is keen on transitioning from diesel-powered machinery to electric alternatives, which they believe will reduce operational costs and emissions while enhancing energy efficiency and productivity, especially in the mining sector.

    Further negotiations with Huayou centred on lithium exploration, extraction, and processing in Tajikistan. The potential establishment of a battery manufacturing facility was also on the agenda, aimed at serving both local and export markets. Huayou, known for its development of lithium, nickel, and cobalt resources, is expected to bring modern technologies and investment to facilitate this venture, thereby creating a comprehensive industrial chain from raw material extraction to high-value product manufacturing.

    The talks also included Bosai Group, which is poised to play a crucial role in the comprehensive modernisation of TALCO. The discussions highlighted the need for advanced technologies to improve production efficiency and environmental sustainability, as well as to attract investment. The modernisation of TALCO is viewed as a strategically important project that could significantly enhance Tajikistan’s aluminium industry and expand its export capabilities.

    In addition to these industrial discussions, the Tajik delegation participated in the World Artificial Intelligence Conference (WAIC) 2026, where they became founding members of the World Organisation for Cooperation in Artificial Intelligence (WAICO). This initiative aims to foster international collaboration and improve global governance in AI technology, ensuring its safe and equitable development for the benefit of humanity.

    Overall, these engagements signify Tajikistan’s commitment to modernising its industrial landscape through strategic partnerships with Chinese firms, which could lead to substantial advancements in technology and production capabilities within the country.

  • Europe’s Raw Materials Strategy Under Pressure as China Tightens Supply Control

    Europe’s Raw Materials Strategy Under Pressure as China Tightens Supply Control

    Europe’s security of supply for critical raw materials is deteriorating, according to a new International Energy Agency report, raising serious questions about the effectiveness of the European Union’s Critical Raw Materials Act launched two years ago. The continent remains heavily dependent on a small number of countries, particularly China, which dominates the market for cobalt, lithium, manganese, and raw material processing, while Indonesia leads in nickel production. Together, these nations accounted for more than three-quarters of global refining growth between 2023 and 2025.

    The vulnerability became apparent when Chinese export restrictions on magnets forced some European car manufacturers to cut production last year, while the number of Chinese products requiring export licenses tripled. Compounding these challenges, global investments in critical minerals fell by 9 percent in 2025, further jeopardizing Europe’s raw materials security.

    Peter Tom Jones, Director of the Institute for Sustainable Metals and Minerals at KU Leuven, argues the strategy is fundamentally flawed. He contends that Europe’s approach of dividing the raw materials chain into separate components is inadequate in a world where China actively restricts exports and expands its monopoly. Jones advocates for comprehensive European investment across the entire value chain—from mining and processing to refining and manufacturing batteries and electric vehicles—requiring billions in state-backed funding.

    The bankruptcy of Swedish battery manufacturer Northvolt in 2025 has deterred private investment, underscoring the need for major government intervention. Jones also recommends implementing an export ban on metal and battery waste to keep high-quality materials within Europe for recycling rather than shipping them to China.

    Andor Lips, strategic advisor on critical raw materials at TNO, suggests Europe should pursue resilience through diversification and partnership rather than complete independence. He recommends building relationships with countries like Australia and Canada, which produce critical materials like rare earth ores for wind turbine magnets. While acknowledging that new European mines and recycling infrastructure require time to develop, Lips believes the Critical Raw Materials Act represents progress, though Europe must absorb supply shocks in coming years before the strategy fully materializes.