Almonty Industries Reaches Key Milestone with Korean Tungsten Mine

Almonty Industries starts commercial tungsten production in South Korea, aiming to diversify Western supply chains for defense and tech. The mine could supply 40% of non-Chinese demand.

After more than thirty years of dormancy, commercial production has officially commenced at the Sangdong tungsten mine in South Korea. Almonty Industries announced the completion of the first phase of commissioning, a development with significant strategic implications as Western industries actively seek to diversify supply chains away from Chinese dominance in critical minerals.

A Strategic Asset for Western Supply Chains

Tungsten is a vital material for defense applications, ammunition manufacturing, and advanced semiconductor production. With China controlling the global market and recently tightening export restrictions, the high-grade Sangdong deposit is gaining considerable attention. The ore body boasts an average grade of 0.51% tungsten trioxide, approximately three times higher than the global average.

The facility in Gangwon province is currently configured to process around 640,000 tonnes of ore annually during this initial phase, yielding an estimated 2,300 tonnes of tungsten concentrate.

The market reaction to the news saw some profit-taking. Shares of Almonty Industries (Almonty IndustriesDRC) declined by approximately 6.5% to AUD 27.74. This pullback follows a substantial rally, with the stock having advanced roughly 110% since the start of the year.

Ambitious Expansion Roadmap

Management has outlined concrete plans for a significant capacity increase. A targeted second phase aims to double processing capacity to 1.2 million tonnes of ore annually by 2027. At full projected output, the mine could potentially supply up to 40% of the global tungsten demand originating from outside China.

To advance this expansion and secure access to defense-related contracts, the company has strategically bolstered its leadership team. This includes the appointment of retired U.S. Brigadier General Steven L. Allen as Chief Operating Officer, bringing direct military expertise to the executive level.

The Sangdong mine will be formally inaugurated at a ceremony on-site tomorrow, Tuesday, March 17, 2026, with CEO Lewis Black presiding. With an estimated mine life exceeding 45 years, the project is positioned to serve as a long-term cornerstone for a more independent Western supply chain for critical minerals.