Almonty Industries: A Strategic Tungsten Play Amid Global Supply Concerns

With China controlling 95% of supply, Almonty's Sangdong mine is set to become a key non-Chinese tungsten source for US defense contractors by 2027.

A recent analysis published by Foreign Policy underscores a critical vulnerability for Western defense industries: the global supply of tungsten has reached a crisis point. This situation is creating a unique opportunity for Almonty Industries (DRC), which is emerging as a pivotal non-Chinese supplier in a tightly controlled market.

A Market Dominated by Adversaries

The core of the supply issue lies in market concentration. Approximately 95% of the world's tungsten supply is controlled by China, Russia, and North Korea. Tensions escalated when the Trump administration imposed tariffs on Chinese tungsten products, prompting Beijing to retaliate with its own export restrictions by the end of 2025. Analysts have described the resulting position for the United States as "dire," a condition exacerbated by increased demand for weapons systems in the Middle East.

This perfect storm of geopolitical and demand factors has sent prices soaring. The twelve-month average price for Ammonium Paratungstate (APT) surged by 534% to USD $2,250 per metric tonne unit (MTU) as of March 13, 2026. Almonty's financials reflect this favorable pricing environment. The company reported 2025 annual revenue of CAD $32.5 million, a 13% year-over-year increase. Its fourth-quarter performance was particularly strong, with revenue climbing 39% to CAD $8.7 million.

Sangdong Mine: A Timely Strategic Asset

Almonty's primary strategic response is the Sangdong mine in South Korea. The company successfully completed Phase-1 commissioning in mid-March. The facility is now operational, processing roughly 640,000 tonnes of ore annually to produce about 2,300 tonnes of tungsten concentrate.

A planned Phase-2 expansion, targeted for 2027, is designed to double this capacity to approximately 4,600 tonnes per year. At full output, Sangdong alone could satisfy an estimated 40% of global tungsten demand from sources outside China. The timing of this expansion is strategically aligned with new U.S. defense procurement regulations set to take effect on January 1, 2027. These rules will mandate that defense contractors source their tungsten from non-Chinese suppliers, a requirement Almonty has explicitly designed Sangdong to meet.

Financial Fortitude and Geographic Diversification

To fund its ambitious plans, Almonty strengthened its balance sheet significantly in December 2025. The company placed 20.7 million new shares, generating gross proceeds of USD $129.4 million. By year-end, its cash position had grown to CAD $268.4 million.

Concurrently, the company is expanding its project pipeline. It acquired the Gentung tungsten project in Montana, USA, securing a potential future production foothold in North America. The long-term vision for Sangdong is even broader. Management aims to develop it into the center of an integrated value chain, dubbed the "Korean Trinity." This concept encompasses the Phase-2 expansion, a planned tungsten oxide plant, and the development of a nearby molybdenum deposit.

The Sangdong asset itself is notable for its quality and longevity. It boasts a projected mine life exceeding 45 years, with an average ore grade of approximately 0.51% tungsten trioxide—roughly three times the global average.

With the commencement of production at Sangdong, Almonty currently stands as the only major non-Chinese tungsten producer operating at a commercial scale. The impending 2027 U.S. defense deadline provides the company with a structural market advantage, contingent upon the successful execution of its ramp-up plans.