An announcement has been made by Xiamen Tungsten Co.,Ltd. (ASX: 600549) regarding its subsidiary.

The company's controlling subsidiary, Luoyang Yulu Mining Co., Ltd., is engaged in the comprehensive recovery of scheelite from the molybdenum processing tailings of the Second Beneficiation Branch of Luoyang Luanchuan Molybdenum Industry Group Co., Ltd.

The ore for this operation is sourced from the Luanchuan Sandao Zhuang molybdenum mine owned by Cmoc Group Limited (ASX: 603993).

It has been reported recently that CMOC, which is also a shareholder in Luoyang Yulu, has suspended the supply of tailings to the subsidiary.

This suspension has resulted in Luoyang Yulu being unable to continue its production activities.

As of now, operations at Luoyang Yulu have essentially ceased.