Almonty Industries: From Development to Production as Tungsten Dynamics Shift

Almonty Industries begins production at its Sangdong tungsten mine amid a 160% price surge, attracting major institutional investment as global supply tightens.

A significant transition is now complete for Almonty Industries. After years operating primarily as a development-stage company, it has officially entered the production phase. The first shipment of ore has departed its flagship Sangdong mine in South Korea, marking this operational milestone. This shift coincides with a profound supply shock in the global tungsten market, drawing renewed attention from institutional investors to the company's stock.

Strategic Positioning Amid Supply Constraints

The global tungsten supply chain is experiencing unprecedented strain. With China estimated to control between 75% and 80% of worldwide supply, Beijing's decision to significantly tighten export quotas by late 2025 sent shockwaves through the market. The immediate consequence was a dramatic price surge, with tungsten gaining over 160% in the past year and continuing its upward trajectory into early 2026. Analysts at BMO Capital Markets noted that certain categories of Chinese tungsten exports temporarily ground to a complete halt during this period.

Industries reliant on this critical metal—including defense, aerospace, and semiconductors—are feeling the impact acutely. The United States finds itself in a particularly vulnerable position, having ceased domestic tungsten production approximately a decade ago. The nation now depends almost entirely on imports and recycled material to meet its needs.

Sangdong Mine: A Cornerstone Asset

The operational heart of Almonty's story is the Sangdong mine. It hosts reserves of 7.9 million tonnes with an average tungsten trioxide grade of 0.47%, equating to 3.7 million contained metric tonne units. Processing facilities are now running according to plan, with capacity scheduled to be ramped up in phases through 2027. A planned Phase-II expansion is targeting an annual throughput capacity of up to 1.2 million tonnes.

This development was financed in part by a $75 million loan from Germany's KfW development bank. The company anticipates recording its first revenues from the asset in the first half of 2026.

Capital Markets Take Notice

The commencement of production has triggered a substantial reallocation of institutional capital. The number of funds holding positions in Almonty jumped by more than 55% last quarter, reaching 107. One notable move came from Van Eck Associates, which increased its stake by a staggering 13,294.7% to 11.24 million shares, representing a market value of approximately $99 million. Other significant investments included roughly $25.6 million from Encompass Capital Advisors and about $16.3 million from Next Century Growth Investors. Throughout 2025, Almonty raised gross proceeds exceeding $219 million via two U.S. capital raises.

This investor enthusiasm is reflected in the share price, which recently touched a 52-week high of $21.18. Just one year ago, the stock was trading around the $1 level.

Building a U.S. Strategic Partnership

Almonty is actively cultivating its role as a strategic partner to the U.S. government. The originally Canadian-domiciled company is relocating its headquarters to the United States, maintains its primary listing on the Nasdaq, and adopted U.S. GAAP reporting standards effective January 1, 2026. CEO Lewis Black has confirmed ongoing discussions with U.S. authorities regarding the establishment of mineral supply chains independent of Chinese control. In a formal signal of intent, the U.S. House Select Committee on Strategic Competition with China has expressed interest in closer collaboration with the firm.

Concurrently, Almonty is advancing other projects. Its Gentung-Browns-Lake project in the United States could be production-ready as early as the second half of 2026, with potential annual output of around 140,000 metric tonne units. In Portugal, an extensive drilling program is underway at the Panasqueira mine to access deeper, higher-grade ore zones.

All eyes are now on March 26, 2026, when Almonty is set to release its quarterly results. This report will be the first to reflect both the historically high tungsten prices and the initial production figures from the Sangdong operation.