Almonty Industries (NASDAQ: ALM) received approval from the South Korean government to commercially process tungsten concentrate at the Sangdong tungsten mine, expected to produce about 200,000 metric tonne units (MTU) per year.
South Korean authorities on Thursday issued mining facility inspection certificates authorizing Almonty to operate Sangdong’s crushing and processing facilities and sell tungsten concentrate domestically and overseas. The approval is the final regulatory step Almonty needed to secure before starting commercial production of the concentrate.
Sangdong, whose average grade is triple the global average, resumed commercial production of ore in March after more than 30 years. The company will now turn that material into concentrate to be sold on South Korean and international markets that are facing strict Chinese export controls.
“Tungsten prices are at historic highs, China has tightened its grip on the material the Western industrial base depends on, and commencing January 2027, United States defense procurement rules will look all the way back to where the ore was mined, and Sangdong is one of very few assets that can answer that question with a Western address and the scale to matter,” Almonty chairman, CEO Lewis Black said.
Tungsten is a vital metal for defense and high-tech electronics. More than 90% of Sangdong’s first-stage production is already contracted to Global Tungsten & Powers LLC, part of Austria’s Plansee Group.
The 21-year offtake agreement has a total contracted volume of 4.4 million MTU of tungsten concentrate.
“The task in front of us is a simple one: operate the plant safely, ramp it steadily and deliver,” Black added.
Almonty had already agreed to supply tungsten to Sandvik from the tailings at its Los Santos mine in Spain, another deal that aims to reduce reliance on China when it comes to the critical mineral.
Shares in Almonty jumped 5.9% to $14.66 apiece in New York trading Monday. That valued the company at about $4.2 billion (C$5.9 billion).
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