Almonty Industries Emerges as a Major Tungsten Producer

Almonty Industries begins tungsten production in South Korea, positioning itself as a key supplier for Western tech and defense amid China export restrictions.

A pivotal shift is underway in the global tungsten market. Almonty Industries has successfully transitioned from a project developer to an active producer, marking the return of one of the world's largest tungsten mines after more than three decades of dormancy. This operational milestone arrives at a critical juncture, as Western industries actively seek alternatives to Chinese raw material supplies.

Capitalizing on Geopolitical Shifts

The company's commencement of production aligns with a period of significant market tension. China has historically controlled over 80% of global tungsten output but imposed strict export restrictions by the end of 2025. Compounding this, the United States will prohibit the import of Chinese tungsten for defense goods starting in 2027. This dynamic positions Almonty's Sangdong mine as a potential essential supplier for Western technology and defense sectors.

This structural change has not gone unnoticed by major institutional investors. In the last quarter, the number of invested funds increased by over 55%, reaching a total of 107. Notable recent positions include:

• Van Eck Associates: Increased its holding to 11.24 million shares, valued at approximately $99 million.
• Encompass Capital Advisors: An investment of around $25.6 million.
• Next Century Growth Investors: An initial position worth about $16.3 million.

This growing institutional interest was preceded by two U.S. capital raises in 2025, which provided the company with gross proceeds exceeding $219 million.

Sangdong Mine: A Strategic Korean Hub

The company confirmed on Monday the formal completion of Phase 1 at its Sangdong mine in South Korea's Gangwon province. The facility is now processing ore and is designed to handle roughly 640,000 tonnes of material annually, from which Almonty will produce approximately 2,300 tonnes of tungsten concentrate.

Management's vision, however, extends far beyond simple extraction. Through its "Korean Trinity" strategy, Almonty aims to establish a fully integrated supply chain. This plan encompasses the mine itself, the construction of a tungsten oxide plant, and the development of an adjacent molybdenum deposit. The objective is to move beyond selling raw concentrate and capture more value by refining the material in-house.

A Phase 2 expansion is already scheduled for 2027. This development is expected to double the processing capacity to 1.2 million tonnes of ore. At full capacity, Sangdong could potentially supply about 40% of the global demand for tungsten outside of China.

Financial Milestone and Market Outlook

Analysts at DA Davidson anticipate that tungsten prices will remain elevated at over $2,000 per metric tonne unit (MTU) for the foreseeable future, creating a favorable pricing environment for the new producer.

Almonty faces its first major financial test on March 26, 2026, when it releases its quarterly results. This report will provide the initial concrete data on how the combination of historically high tungsten prices and the inaugural production from Sangdong translates to the company's bottom line.