Almonty Industries: A Strategic Tungsten Mine Resumes Operations

South Korea's historic Sangdong mine resumes production, offering a major non-Chinese tungsten source for US defense and aerospace amid global supply chain diversification.

After a hiatus spanning more than three decades, the Sangdong tungsten mine in South Korea’s Gangwon province is once again producing material. Almonty Industries has successfully completed the first phase of commissioning for the facility. This revival comes at a pivotal moment, as Western nations actively seek to diversify their supply chains away from Chinese sources for critical minerals.

A Crucial Metal Gains Strategic Importance

Tungsten is an indispensable component in modern defense and aerospace applications, prized for its exceptional hardness and the highest melting point of any element. It is vital for manufacturing armor, ammunition, and various high-tech systems. Currently, China is estimated to control between 79% and 88% of global tungsten production, creating a significant dependency. This reliance has become increasingly problematic, especially following the U.S. announcement that it will prohibit tungsten imports from China for defense procurement starting in 2027.

The Sangdong deposit is historically recognized as one of the world's largest. It is not a short-term project, with an expected mine life exceeding 45 years. The ore grade averages approximately 0.51% tungsten trioxide, which is about three times higher than the global average. The Phase 1 processing plant is designed to handle roughly 640,000 tonnes of ore annually, with an output target of around 2,300 tonnes of tungsten concentrate per year.

Offtake Agreements Provide Market Certainty

Almonty has already secured buyers for its future production. A long-term supply agreement with U.S. defense contractor Tungsten Parts Wyoming and Israeli processor Metal Tech guarantees the purchase of a minimum of 40 tonnes of tungsten oxide per month. This material is designated exclusively for U.S. defense applications, including missiles, drones, and munitions systems. Furthermore, the mine’s entire molybdenum production is contracted to South Korea’s SeAH Group.

Looking ahead, Almonty has outlined plans for a Phase 2 expansion in 2027. This development aims to double the plant’s processing capacity to about 1.2 million tonnes of ore each year. At full operational capacity, Sangdong could potentially supply up to 40% of the global demand for tungsten outside of China. The company's shares have seen substantial appreciation over the past twelve months, with further progress on the Phase 2 planning likely serving as the next major catalyst for investor interest.