Why tungsten is rarer than rare earths

As Green Technology Solutions’mining subsidiary, GTSO Resources, continues to pursue promising new tungsten plays around the globe, rising demand for the super-hard metal coupled with dwindling supplies is keeping prices high. The British Geological Survey ranks tungsten among the scarcest elements on earth—rarer even than rare earths, which have seen an explosion in value in recent years.

The metal’s unique properties make it essential to the manufacture of everything from drill bits to cruise missiles, and there are no known substitutes. For years, China has controlled global tungsten supplies, producing about 80 percent of worldwide consumption and pricing competitors out of the market. Now, China is cutting back dramatically on exports, reserving its tungsten supplies for its own use.

The result is that a metal that sold for $50 per tonne in 2000 now trades at $400 a tonne—an eight-fold increase. That’s good news for GTSO as the company works to identify and develop untapped tungsten deposits from Alaska to Africa.

“China is keeping more of its tungsten resources, and the effect of its new priorities has been to eliminate decades of artificially deflated prices,” said GTSO CEO Paul Watson. “Tungsten prices have taken a dramatic bounce, and GTSO is working diligently to capitalize on these favorable market conditions.”

GTSO is currently focusing on tungsten resources near Alaska’s Yukon River identified by its new joint venture partner, Diamond V Associates (DVA). The company also recently opened talks with a potential urban mining target with operations in Chile.

GTSO isn’t the only company preparing to capitalize on tungsten demand. Legendary investor Warren Buffet recently bet $35 million on a junior tungsten miner in South Korea. GTSO expects investor interest to continue growing as tungsten prices continue to climb.

GTSO plans to service a fast-growing global appetite for rare and precious metals to compete in an exciting sector that includes Goldcorp Inc. (NYSE: GG), Newmont Mining Corp. (NYSE: NEM), Royal Gold, Inc. (NASDAQ: RGLD) and Barrick Gold Corp. (NYSE: ABX).