Mongolia to allow QGX to mine tungsten, hopes to profit from Chinese restriction on selling minerals

{mosimage}Mongolia has agreed to allow QGX (QGX-T) to begin mining tungsten and molybdenum at Undur Tsagaan. These are both minerals used in the hardening of steel.  The demand and market price of both minerals may be heading up due to China restricting the mining of both minerals.

Mongolia has agreed to allow QGX (QGX-T) to begin mining tungsten and molybdenum at Undur Tsagaan. These are both minerals used in the hardening of steel.

The demand and market price of both minerals may be heading up due to China restricting the mining of both minerals. China currently has some 80 percent of the world’s tungsten and molybdenum mines.

"China is moving towards becoming a quasi-monopolist regarding the sale and distribution of steel products that have been hardened by tungsten – like cutting steel – with the idea that it will command a higher price," Paul Zweng, QGX's president, told www.stockhouse.ca. 

"They're slowing, if not outright stopping, the exportation of tungsten into the global market place. That is going to put the spotlight on projects outside of China and QGX has the largest tungsten project in Mongolia," noted Zweng.

Demand is high for tungsten and molybdenum in Japan, Korea, and Russia. QGX is expected to sell Mongolian tungsten to these countries.

www.mongolia-web.com