Have You Asked Your Current Source Where Their Tungsten Powder Came From?

Late last year (2018) a new bill made its way through government processing. Bill H.R. 5515 was made law and now begins to impact us in the metals industry. Specifically, Section 871 deals with the acquisition of tungsten (or tungsten base powder) and its origins, if it is to be used in military applications. According to Sec. 871, any tungsten being used in military applications can’t originate from a number of countries. At Diversified Metals Inc. we have American sourced tungsten that makes it available for use in all government and military applications.

Our 40+ years of experience providing specialty metals for the demanding needs of military applications have taught us to be attentive and responsive to the ever-changing requirements of such a specialized industry. Give us a call and our sales staff will help you find just the metal your challenging job requires.


Subtitle H—Other Matters


Foreign Nations

(a) In General.—Subchapter V of chapter 148 of title 10, United States Code, is amended by inserting after section 2533b the following new section:

Ҥ 2533c. Prohibition on acquisition of sensitive materials from non-allied foreign nations

(a) IN GENERAL.—Except as provided in subsection (c), the Secretary of Defense may not—

1) procure any covered material melted or produced in any covered nation, or any end item that contains a covered material manufactured in any covered nation, except as provided by subsection (c); or

(2) sell any covered material from the National Defense Stockpile, if the National Defense Stockpile Manager determines that such a sale is not in the national interests of the United States, to—

(A) any covered nation; or

(B) any third party that the Secretary reasonably believes is acting as a broker or agent for a covered nation or an entity in a covered nation.

(b) APPLICABILITY.—Subsection (a) shall apply to prime contracts and subcontracts at any tier.

(c) EXCEPTIONS.—Subsection (a) does not apply under the following circumstances:

(1) If the Secretary of Defense determines that covered materials of satisfactory quality and quantity, in the required form, cannot be procured as and when needed at a reasonable price.

(2) To the procurement of an end item described in subsection (a)(1) or the sale of any covered material described under subsection (a)(1) by the Secretary outside of the United States for use outside of the United States.

(3) To the purchase by the Secretary of an end item containing a covered material that is—

(A) a commercially available off-the-shelf item (as defined in section 104 of title

41), other than—

(i) a commercially available off-the-shelf item that is 50 percent or more tungsten by weight; or

(ii) a mill product, such as bar, billet, slab, wire, cube, sphere, block, blank, plate, or sheet, that has not been incorporated into an end

item, subsystem, assembly, or component;

(B) an electronic device, unless the Secretary of Defense, upon the recommendation of the Strategic Materials Protection Board pursuant to section 187 of this title, determines that the domestic availability of a particular electronic device is critical to national security; or

(C) a neodymium-iron-boron magnet manufactured from recycled material if the milling of the recycled material and sintering of the final magnet takes place in the United States.

(d) DEFINITIONS.—In this section:

(1) COVERED MATERIAL.—The term ‘covered material’ means—

(A) samarium-cobalt magnets;

(B) neodymium-iron-boron magnets;

(C) tungsten metal powder; and

(D) tungsten heavy alloy or any finished or semi-finished component containing tungsten heavy alloy.

(2) COVERED NATION.—The term ‘covered nation’ means—

(A) the Democratic People’s Republic of North Korea;

(B) the People’s Republic of China;

(C) the Russian Federation; and

(D) the Islamic Republic of Iran.

(3) END ITEM.—The term ‘end item’ has the meaning given in section 2533b(m) of this title.”.

(b) CLERICAL AMENDMENT.—The table of contents at the beginning of such subchapter is amended by inserting after the item relating to section 2533b the following item:

“2533c. Prohibition on acquisition of sensitive materials from non-allied foreign nations.”.