The global demand for tungsten, a metal crucial for both defense and technology, is driving a surge in prices and benefiting Portugal’s only tungsten mine. As geopolitical tensions rise, particularly in the Middle East, the strategic importance of this often-overlooked metal is coming into sharp focus. The price of tungsten has skyrocketed, increasing by more than 550% to $2,250 per metric ton since February 2025, a jump triggered initially by China’s export restrictions and further fueled by increased military spending worldwide.
Portugal, with a history deeply intertwined with tungsten production dating back to the Second World War, is poised to capitalize on this renewed demand. The country was a key supplier during the war years, navigating a complex political landscape by selling the metal to both Allied and Axis powers. That period, as historian João Paulo Avelãs Nunes has noted, saw multiple “runs” on the resource, creating localized wealth and reinforcing tungsten’s status as a “strategic metal.” Today, the Beralt Tin and Wolfram complex, owned by Canadian firm Almonty Industries since 2016, is the sole producer of tungsten in Portugal.
A Historic Resource in a Modern Conflict
Tungsten’s versatility makes it indispensable in a range of applications. Beyond its use in munitions, tank construction, and naval defenses – where it enhances resistance to bombardment – it’s a vital component in the production of semiconductors and the burgeoning field of Artificial Intelligence. António Corrêa de Sá, executive administrator of Minas da Panasqueira, the company operating the mine in Castelo Branco, confirmed the intense demand. “There’s little supply and a lot of demand. We are with our usual production. We have all the production sold. But that’s always been the case. We have everything closed, everything sold. In fact, we would sell more if we had more, given that the demand is immense,” he told Jornal Económico.
Portugal’s 2025 production reached 700 tons, a 50-ton increase from the previous year, positioning it as the 11th largest tungsten producer globally. However, this output pales in comparison to China, which dominates the market with nearly 80% of global production and holds over 53% of the world’s reserves – estimated at 2.5 million tons. Portugal’s reserves, at 3,400 tons, are the eighth largest globally, representing a significant, though smaller, contribution to the world supply.
Purity and Expansion at Panasqueira
The tungsten concentrate produced at the Panasqueira complex boasts an exceptionally high purity level of 75%, exceeding the average market standard of 65%. This quality commands a premium price, according to Corrêa de Sá. “What we have is a mine that has been working for over 120 years to supply the world. It’s important because there’s no one who produces a concentrate as pure as ours.” The company is currently investing in expanding production, aiming to increase output to 1,200 tons within two years through the opening of new galleries, with reserves currently estimated to support another 15 years of operation.
Currently, all of Portugal’s tungsten production is exported, with half going to Europe and the other half to Asia, specifically to Japanese companies operating in the United States. Despite existing contracts, prices are adjusted monthly to reflect market fluctuations. In 2025, the company generated €20 million in revenue and anticipates further growth this year due to rising prices.
Echoes of the Past, Implications for the Future
The current surge in tungsten prices evokes memories of the Second World War, a period when Portugal’s “amorfa neutralidade” – as described by writer Aquilino Ribeiro – allowed it to profit from supplying both sides of the conflict. Between 1940 and 1944, tungsten sales contributed to a significant increase in Portugal’s GDP, between 19% and 30%, and a historic trade surplus in 1942, according to the Fundação Francisco Manuel dos Santos (FFMS). However, this prosperity came with economic challenges, including fuel shortages and widespread rationing.
Corrêa de Sá recalls stories from that era of immense fortunes made during the “gold rush” for tungsten, with tales of people lighting cigars with banknotes. The current situation, while driven by different geopolitical forces, shares a similar dynamic of heightened demand and increased value. The company is likewise exploring opportunities to bring some of that production back to Portugal, prioritizing domestic companies under the terms of its concession agreement, potentially for the production of cutting tools and drilling equipment.
Analysts at Fastmarkets predict that the tight market conditions will persist throughout 2026, citing low inventories, Chinese export restrictions, and limited new supply. The development of new mines in Europe, the US, and Asia is years away, and recycling efforts are currently insufficient to meet demand. This reinforces tungsten’s position as a “strategic resource,” with prices increasingly influenced by political decisions and geopolitical alignment.
Looking ahead, the company expects to continue to benefit from the increased demand for tungsten, while also contributing to the Portuguese economy and providing employment opportunities. The next step for Minas da Panasqueira is the continued expansion of production capacity, with the opening of new galleries expected to significantly increase output in the coming years.
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