Luoyang Yulu Mining suspends operations after CMOC halts tailings supply, threatening Xiamen Tungsten's output and tightening global scheelite/tungsten availability.
Luoyang Yulu Mining, a 60%-owned subsidiary of Xiamen Tungsten, has fully suspended its production operations starting June 25, 2026. This halt stems from the suspension of tailings delivery by CMOC, a key supplier, leaving Luoyang Yulu Mining without essential raw materials. The duration of this suspension remains uncertain.
In 2025, Luoyang Yulu Mining produced 1,924 metric tons and sold 1,614 metric tons of scheelite concentrates, measured by WO3 metal content. For the first half of 2026, the subsidiary's production stood at 685 metric tons, with sales reaching 669 metric tons. These figures highlight the scale of operations now impacted by the production halt.
While Luoyang Yulu Mining's suspension is expected to affect Xiamen Tungsten's near-term operating performance, the full extent cannot be predicted currently. Xiamen Tungsten operates a comprehensive tungsten and molybdenum industry chain, including mining, smelting, and downstream processing. The company is a significant player in the global tungsten market, which China heavily dominates, controlling around 80% of annual production.
Tungsten is a critical mineral with high economic importance, essential for industrial tooling, aerospace components, and military hardware due to its unique properties like high melting point and hardness. Global tungsten prices, particularly for ammonium paratungstate (APT), have seen significant increases in recent years, driven by tightening Chinese export policies and strong industrial demand. This suspension could further impact market supply, although Xiamen Tungsten has multiple mining companies, including Ninghua Xingluokeng and Duchang Jinding.
Xiamen Tungsten has stated it cannot determine the exact impact on its overall performance until the duration of the suspension is clear. The company has historically emphasized its commitment to environmental protection and legal compliance. It remains focused on improving raw material guarantees, including promoting new mine construction and expanding waste tungsten recycling. The situation underscores the vulnerabilities in the supply chain for critical minerals, especially given China's dominant position in the tungsten market and recent export controls.
Impact on the Product: The suspension directly disrupts Xiamen Tungsten's scheelite concentrate supply chain, a subsidiary that produced nearly 1,924 MT of WO3-content concentrate in 2025. With no clear resumption timeline, downstream smelting and processing operations may face feedstock shortages, potentially reducing output across tungsten-based products like APT, tungsten carbide, and specialty alloys used in tooling, aerospace, and defense applications.
Impact on Prices of Chemicals Tracked by ChemAnalyst: This supply disruption is likely to add upward pressure on tungsten-related commodities, particularly Ammonium Paratungstate (APT), tungsten concentrate, and tungsten carbide, already strained by China's export restrictions and dominant 80% market share. Reduced raw material availability from a major Chinese subsidiary could tighten global supply further, reinforcing bullish price momentum despite Xiamen Tungsten's alternative mining assets, keeping markets cautious amid ongoing supply chain vulnerability.
