Advanced Materials Secures Tungsten Resources

Tokyo based rare metals trading firm, Advanced Material Japan Corporation expands the supply sources of tungsten used for cemented carbide tool. The firm singed agreement for sales agent of concentrate with Canadian tungsten miner while the trader seeks new sources in Mongol, Vietnam, Myanmar and Kazakhstan. The trader tries to keep the stable supply for Japanese users by developing new sources when world largest producing country of China, which represents more than 80% of world output, tries to secure the materials for domestic use. The trader signed agent agreement for tungsten concentrate sales with North American Tungsten (NAT) of Canada, which has Can Tung and Mactung tungsten mines. The trader markets the concentrate from Can Tung. The Can Tung mine produces around 3,000 tonnes per year in tungsten oxide. The trader tries to secure a third of the output from the mine. The trader considers capital participation in the Mactung mine. The firm tries to secure stable supply of tungsten for Japanese users by partnership with NAT. Tungsten demand increases in China along with the rapid growth. The country encouraged tungsten export by returning 13% of value added tax but reduced the return gradually to 5% effective in January 2006. The government is expected to terminate the tax return. The country reduces export license recently shifting the rare metal export policy from export encouraging to securing domestic resources.