For a country that supplies 90% of the world's tungsten China seems to be on a spree to acquire tungsten resources world wide. Either the supply to meet the industrial demand within China will face a shortage in the long run or China wants to monopolize the trade.

After taking stakes in Canada, the latest is as the following news

Chinese back King Island scheelite mine

ABC - September 9, 2008, 5:28 pm

The redeveloped scheelite mine on King Island has passed its final hurdle, after the project received the backing of the Chinese Government.

Construction of the mine at Grassy has been delayed by months, while its Chinese investors awaited official approval.

The Chief Executive of King Island Scheelite, Nick Lambert, says the company will meet investors in coming weeks to finalise the construction timeline.

"We're a little bit disappointed with the amount of time it's taken to get to this stage, but now it's here we're pretty excited and we're ready to go."

Under the deal, Hunan Nonferrous Metals Corporation will cover half the project's $110million construction pricetag.

Mr Lambert says the company is confident it has not missed the mining boom as a result of the delay.

"The price of tungsten has been holding up pretty well over the past few months where some other commodities have slid a litte bit, so we're still pretty confident that the margins are there," he said.

The mine is expected in full production by mid 2010.