With the recent Russian actions in Ukraine, Russia is under economic sanctions by many nations. It is too soon to understand all of the impacts of these sanctions. Buffalo Tungsten is not reliant upon any Russian materials or supplies. We can operate at full capacity for tungsten powder production without any materials from Russian entities. We do not expect current or future Russian economic sanctions to effect our business.
There are active tungsten mines in Russia. They operate primarily in the far eastern part of the country, but there are tungsten operations in western areas as well. There are mines actively producing tungsten concentrates. The materials are available on the open market. There are plants in the country that treat and process these tungsten concentrates into various intermediate forms and products.
Buffalo Tungsten has purchased materials from Russian entities at times. We have no contracts in place for 2022 or beyond at this time to purchase materials reliant on Russian companies. Therefore, we feel that the Russian economic sanctions will not have an adverse impact on us.
Buffalo Tungsten’s supply chain is diverse, but we still actively manage our sources of materials to insulate us from uncertainty. As a result, we have reduced our dependence on countries we feel present risks. We will continue to evaluate where we source raw materials. This will allow us to continue to provide a consistent supply of tungsten powder products to our customers.