US Backs Tungsten Mining in Kazakhstan to Challenge China's Dominance
Kazakhstan plays a pivotal role in the United States' strategy to establish a new tungsten supply chain; however, experts indicate that surpassing China's dominance will be a significant challenge. US-supported mining initiatives in Kazakhstan are striving to make their mark in a sector where Chinese investments have already secured a presence. The supply shortage has impacted US oilfield equipment manufacturers, who are reengineering one of their key tools as the global deficit drives up the costs of drill bit production. Ulterra Drilling Technologies reported that drill bit manufacturing expenses have surged by up to 50 percent in the last year. In response, the company is pivoting towards steel-bodied models, despite tungsten-enhanced bits typically offering greater durability when drilling through tough, abrasive rock.
Key facts
- Kazakhstan is at the centre of US efforts to build a new tungsten supply chain.
- Analysts say China's lead in tungsten will be difficult to overcome.
- US-backed mining projects in Kazakhstan are attempting to compete where Chinese investment already has an operating foothold.
- The global tungsten shortage has raised the cost of making drill bits for US oilfield equipment makers.
- Ulterra Drilling Technologies reported that drill bit manufacturing costs rose by as much as 50 per cent over the past year.
- Ulterra is shifting production towards steel-bodied drill bit models.
- Drill bits containing more tungsten typically last longer when cutting through hard, abrasive rock.
- China has dominated tungsten for decades.
Entities
Institutions
- Ulterra Drilling Technologies
Locations
- Kazakhstan
- China
- United States