Almonty Begins Ore Processing at Sangdong as Western Tungsten Supply Chain Takes Shape

Almonty Industries starts feeding ore at its Sangdong processing plant, aiming to supply Western defense and semiconductor sectors with China-independent tungsten.

Nearly a decade of development work at South Korea's historic Sangdong mine has reached a turning point. Almonty Industries has started feeding ore through its newly commissioned processing plant, transforming the Canadian developer into an active tungsten producer. The milestone arrives as Western buyers — particularly from the defence and semiconductor sectors — scramble for supply chains independent of China.

To ensure a smooth ramp-up, the company is initially processing lower-grade material drawn from a substantial stockpile. That stockpile, accumulated before production, holds roughly 140,000 tonnes of run-of-mine ore. Based on current market pricing, the contained tungsten metal is valued at about $68 million — enough to keep the plant running for more than two months. The average tungsten trioxide grade stands at around 0.25 percent.

Almonty’s financial position has strengthened ahead of the start. Revenue surged 221 percent to $25.4 million in early 2024, propelled by higher spot prices and steady output from its Portuguese Panasqueira mine. Operating cash flow also swung sharply into positive territory, providing the company with additional financial flexibility as it transitions Sangdong to full production.

In a parallel move, Almonty’s shareholder base has widened significantly. The stock joined the Russell 1000 and Russell 3000 indices at the end of June, a change that automatically brings in passive funds and institutional investors. Market observers expect the index inclusion to boost liquidity and broaden long-term support for a company that requires substantial capital to build a Western tungsten supply chain.

The market’s reaction to the operational milestone has been muted, however. Shares recently slipped about 5 percent to C$22.33, extending a monthly decline of roughly 21.8 percent. Over the past year, though, the stock has risen 258 percent, and it remains comfortably above its 200-day moving average of C$18.27. The secondary article notes a slightly different current price of C$23.27 and a one-month drop of 18 percent — the variation likely reflects timing differences in the reports.

Looking ahead, Almonty plans to upgrade its output from ore to high-purity tungsten concentrate and, further down the line, to build its own tungsten oxide processing plant. That would embed the company directly into the Western supply chain for a metal that the Pentagon and other defence ministries consider critical. For now, the Sangdong plant must prove its reliability in continuous operation. Once it reaches full capacity, Almonty will have closed one of the most significant gaps in the West’s strategic materials supply chain.