Sandvik runs one of the world’s most sustainable tungsten mines. The mine, in addition to strategic supply alliances, helps maintain a steady supply of material regardless of shifts and volatility in the market.
Tungsten is a critical material that is used for industrial tooling, mining, electronics, aerospace, defense and more. The demand for this finite material is expected to increase, driven largely by the growth of electronics, green technologies and defense.
(Source: ~2.1% CAGR through 2025-2030 based on volume according to End use study of tungsten, sponsored by International Tungsten Industry Association -ITIA)
Tungsten, in the form of tungsten carbide, offers exceptional hardness, heat resistance, and durability, which is why Sandvik uses tungsten carbide in its cutting tools for the metal cutting industry, as well as in robust tools for demanding mining and construction operations. However, it is a finite material, with a supply that remains vulnerable to geopolitical disruptions.
China dominates global tungsten mine production today, accounting for 80 percent of the supply. As export volumes into the global market can vary and recent adjustments to mineral export policies have introduced new dynamics, finding alternative ways to source this valuable resource is becoming increasingly critical, and producers are facing supply issues.
Sandvik continues to secure a reliable, long-term supply of high-quality tungsten thanks to its resilient and strategically managed supply chain. This is thanks to its legacy of working with multiple strategic sourcing partners, flexibility within its own production, recycling – and its very own tungsten mine.
Sandvik mine in Europe
The Wolfram Bergbau und Hütten AG mine has been in operation since 1975 and is the only fully integrated tungsten smelting operation outside of Asia and Russia. Sandvik purchased the operations in 2009.
Wolfram Bergbau und Hütten AG, located in Austria, manages the entire production chain, from mining scheelite ore, to refining and recycling materials containing tungsten. This integration allows Sandvik to maintain consistent quality, optimize costs, and reduce reliance on external suppliers.
The Wolfram Bergbau und Hütten AG mine is an underground mine that includes a new state-of-the-art processing plant, fully automated crushing, screening and conveying systems, and the latest equipment, including the Sandvik CJ815 jaw crusher and CS840i cone crusher for precision particle reduction. AI-powered ore sorting is in place to detect tungsten-bearing inclusions invisible to traditional systems.
“We have 50 years of mining experience, and we’ve developed a strong capability to operate both efficiently and sustainably,” says Annegret Bicherl, Vice President Operations, Wolfram Bergbau und Hütten AG, adding that in addition to having its own mine and in-house experts, the company also collaborates with external tungsten mines and recycles to secure a stable and resilient supply of tungsten.
nnegret Bicherl, Vice President Operations, WolframWe have 50 years of mining experience, and we’ve developed a strong capability to operate both efficiently and sustainably
Recycling and circularity as a strategy
Through Wolfram, Sandvik operates recycling facilities in Austria and India that recycle used tungsten tools into high-quality tungsten powder. “Tungsten is a critical and finite material so it’s important to recycle it,” says Bicherl. “However, we will always need to mine a certain proportion due to losses in the applications, but with our customer buy-back program we close a significant loop and enable circularity.”
The ambition is to achieve 90 percent circularity by 2030, and it will help to significantly increase the share of recycled tungsten and reduce the need for virgin material.
Getting material back into the system for recycling is crucial for circularity and supply says Gary Tully, Vice President Supply Chain at Wolfram. “We appreciate all the material we get from customers. The more material the customers send back to us, the more we can recycle and secure their supply chain.”
Gary Tully, Vice President Supply Chain at WolframWe appreciate all the material we get from customers. The more material the customers send back to us, the more we can recycle and secure their supply chain
Sandvik implements an optimized and balanced raw material strategy that enhances supply chain agility, adds Tully. In addition to recycling and operating its own mine, Sandvik balances the supply risk by having numerous channels of supply and continuously working with new mines that are also fully compliant with the EU Conflict Minerals Regulation and the OECD Due Diligence Guidance. “We always strive to align our supply chain with market forces and the changing situation. We achieve that by having long-term partnerships and quickly adapting our supply strategy,” he says.
This approach has proven to be a reliable one for Sandvik, which had a robust tungsten supply even during the Covid-19 pandemic, Tully points out. “We were able to move supply better and had more options than most others because we have our own mine, recycling capacity and flexibility in our supply chain.”
Expanding global tungsten supply security
In addition to its fully integrated tungsten supply chain, from mining to refining and recycling, Sandvik also strengthened its presence in North America, with the 2023 acquisition of Buffalo Tungsten Inc., a manufacturer and supplier of tungsten powders.
With these multiple efforts to ensure the tungsten supply, Sandvik customers can feel confident that their requirements will be met for many more years to come.