The Dolphin Mine, one of the world's largest tungsten deposits located on King Island, Australia, is set to ramp up production, with underground ore extraction and delivery scheduled for September. This reopening occurs as major global conflicts intensify and the United States prioritizes securing critical minerals for defense.
Tungsten is a vital component in the production of armor-piercing ammunition and armor plating, making the mine's resurgence significant amidst current geopolitical events. The mine's history is closely linked to periods of major conflict. It first opened in 1917 to support munitions for World War I, ceasing operations shortly after the war's end. Activity resumed in 1938, in anticipation of World War II, and the mine's operations waxed and waned with the Korean and Vietnam Wars and the Cold War arms buildup. It was eventually shuttered in 1990, a year after the fall of the Berlin Wall, and its open pit lay flooded for three decades.
Redevelopment of the mine began in January 2022, shortly before Russia's invasion of Ukraine. The current surge in activity and demand is attributed to ongoing global conflicts and a broader international effort to secure rare minerals, particularly as China dominates the current global tungsten supply market.
The U.S. is actively pursuing strategies to secure its access to strategic minerals. This includes a recent $1.6 billion agreement to mine untapped tungsten reserves in Kazakhstan. Tungsten is a key component in America's air defense missiles, which have reportedly seen depleted stockpiles following prolonged conflicts. The Trump administration has been increasing missile production, which has further fueled investment in critical metal mines.
This increased demand for tungsten also comes as China continues to expand its military capabilities, with regional tensions rising, particularly concerning Taiwan. The Pentagon has previously indicated that China could attempt an annexation of Taiwan within the decade, an event that could precipitate a major conflict in the Pacific region. The U.S. and its allies are working to build up resources and secure supply chains for materials essential to modern warfare.