Almonty Industries: A Strategic Western Tungsten Producer Emerges

Almonty Industries transitions to producer as its Sangdong mine begins operations, positioning it as a key Western tungsten source amid a 100%+ price surge and global supply deficit.

The commencement of operations at the Sangdong mine in South Korea marks a pivotal transformation for Almonty Industries, shifting the company from developer to producer. This transition occurs against a backdrop of soaring tungsten prices and tightening global supply, positioning the firm as a key non-Chinese source of this critical metal.

Geopolitical Context and Market Dynamics

A significant supply deficit outside China, exacerbated by Chinese export restrictions, has driven a dramatic surge in tungsten prices. The global price has surpassed $2,200 per metric tonne unit (MTU), representing an increase of more than 100% since the start of the year. Just twelve months ago, prices were below $400 per MTU. This environment underscores the strategic importance of new production from Western-aligned sources.

Government initiatives are further amplifying this trend. The United States has announced "Project Vault," a $12 billion program designed to secure reserves of strategic minerals, highlighting the heightened focus on reliable supply chains. In a strategic move to align with this shift, Almonty is evaluating a potential relocation of its corporate domicile to the U.S., a step that would better position it for contracts with the Department of Defense.

Sangdong Mine: Phase One Operational

The newly commissioned Sangdong facility is now processing ore. With an annual capacity of 640,000 tonnes, the operation is expected to yield approximately 2,300 tonnes of tungsten concentrate. A key economic advantage is the site's ore grade, which averages 0.51% WO3. This concentration is roughly three times higher than the global average for comparable deposits.

Almonty finalized the start-up process through "wet commissioning," a phase that tests the processing plant's capabilities under full operating conditions. The company has invested over $100 million in the project since acquiring the mine in 2015, with an expected mine life exceeding 45 years.

Institutional Recognition and Future Expansion

The production milestone has swiftly captured institutional interest. On March 17, 2026, Bank of America initiated coverage on Almonty with a "Buy" rating and a $20 price target. The bank's analysts cited the company's emerging role as a leading Western producer in a market historically dominated by Chinese supply.

Looking ahead, a planned Phase 2 expansion in 2027 aims to double the mine's processing capacity to 1.2 million tonnes of ore annually. This would boost projected output to about 4,600 tonnes of tungsten concentrate each year. At full capacity, Sangdong could potentially meet an estimated 40% of tungsten demand outside China. The timely execution of this second phase is contingent on the persistence of favorable tungsten prices and stable financing conditions.

Almonty's portfolio also includes supplementary tungsten projects located in Portugal and Spain, broadening its strategic footprint.