Portugal Emerges as Europe's Tungsten Lifeline as Prices Surge 557% and Borralha Mine Advances
Northern Portugal's Borralha mine is emerging as one of Europe's most important tungsten prospects as prices hit record highs after a 557% rally. A Canadian miner's preliminary assessment values the project at up to CA$1 billion.
As global tungsten prices surge to historic highs amid Chinese export controls and surging defence demand, northern Portugal's Borralha mine is positioning itself as one of Europe's most significant domestic sources of the critical metal — with a Canadian mining company advancing plans that could reshape the continent's supply chain.
Tungsten prices hit US$3,150 per metric ton unit (mtu) of tungsten trioxide on March 27, 2026, marking a staggering 557 per cent rally driven by China's decision to restrict exports of the metal and escalating global military demand. The surge has turned Europe's attention to its own geological resources — and Portugal, with its long mining heritage, sits at the centre of that opportunity.
The Borralha Project
Allied Critical Metals, a Canadian junior mining company listed on the CSE, has been steadily developing the Borralha Tungsten Project in the Trás-os-Montes region of northern Portugal. The site is a former tungsten mine that operated during much of the 20th century — including periods of intense production during the Second World War, when Portugal was a key supplier of tungsten to both Allied and Axis powers.
In March 2026, the company released a Preliminary Economic Assessment (PEA) based on drilling at the San Helena Breccia deposit. Key findings include:
- Over 200 metres of breccia-hosted tungsten mineralisation intersected at the newly defined Venise target
- Life-of-mine capital estimated at US$178 million (US$91.5 million initial, US$87 million sustaining)
- An after-tax net present value (NPV at 8% discount) of CA$475 million at the base-case price of CA$1,000/mtu — roughly one-third of the current spot price
- At CA$1,500/mtu, the NPV rises to nearly CA$1 billion
"The current renewed interest and sky-high tungsten price make Borralha's economics very attractive," said Thibaut Lepouttre, an analyst at Caesar's Report. "Thanks to the low initial capex, Borralha is establishing itself as one of Europe's best options to increase domestic tungsten production within the EU."
Why Tungsten Matters
Tungsten is one of the densest and hardest metals on Earth. Its melting point — 3,422°C, the highest of any metal — makes it indispensable in defence applications including armour-piercing munitions, missile components, and military-grade alloys. It is also essential for semiconductor manufacturing, where it forms critical connections in chip architectures.
"Without tungsten, the modern military-industrial machine quite literally grinds to a halt," Investor News wrote in January 2026.
China produces roughly 80 per cent of the world's tungsten supply. In February 2025, Beijing imposed export controls on the metal as part of its retaliatory measures in the US-instigated trade war, and Chinese shipments fell approximately 40 per cent last year — partly due to restrictions, partly to declining ore quality. The United States has not produced any tungsten domestically since 2015.
Portugal's Mining Heritage
Portugal has a deep but often overlooked mining tradition. The Borralha mine was one of Europe's largest tungsten producers during the mid-20th century, and the country remains rich in critical minerals including lithium, tin, and tungsten. The EU's Critical Raw Materials Act, adopted in 2024, sets a target for at least 10 per cent of the bloc's strategic mineral consumption to come from domestic extraction by 2030 — a framework that positions Portuguese mining projects favourably for European funding and regulatory support.
Allied Critical Metals is also exploring its Vila Verde property in northern Portugal for tin and tungsten deposits, and expects to re-assay historical drilling data in early 2026.
What This Means for Portugal
The revival of large-scale tungsten mining in northern Portugal could bring significant economic activity to the Trás-os-Montes region, one of the country's most depopulated interior areas. If the Borralha project advances to production, it would create hundreds of direct jobs and position Portugal as the EU's leading tungsten supplier at a time when the bloc is desperately trying to reduce its dependence on Chinese critical minerals.
However, mining projects in rural Portugal have historically faced local opposition over environmental concerns and water usage — a dynamic that could slow the permitting process regardless of the strategic imperative at the European level.