Xiamen Tungsten's subsidiary has stopped production, Luoyang Molybdenum responded by temporarily suspending the supply of tailings.

On the evening of July 1st, Xiamen Tungsten's subsidiary Luoyang Yulu Mining has basically stopped production because its upstream partner Luoyang Molybdenum has suspended the supply of tailings. Luoyang Molybdenum responded that, in view of the national requirements for the compliance management of tungsten mines, the shareholders of Luoyang Yulu have not yet reached a consensus on the handling plan, so the company has taken the measure of suspending the supply of tailings to ensure production and operation compliance. Industry insiders analyze that tungsten is a strategic metal in China and has always been managed by quota. In addition to previous export controls, the resource attributes of tailings are being reassessed. Luoyang Molybdenum supplying tungsten-containing tailings to Luoyang Yulu may touch on the quota index, resource flow, or mining rights compliance issues related to tungsten mines.