Almonty’s Sangdong Mine Delivers a One-Two Punch: Molybdenum Discovery Adds Strategic Weight to Critical Tungsten Supply Chain

Almonty's Sangdong mine discovers 120M-tonne molybdenum, cutting South Korea's 90% reliance on China amid tungsten supply fears.

When Almonty Industries first began pulling tungsten ore from its Sangdong mine in South Korea last December, the focus was squarely on breaking China’s near-total grip on a metal essential for everything from chipmaking to armour. Now, a newly confirmed molybdenum deposit of striking scale is turning the project into an even bigger strategic prize — and giving Seoul a rare chance to slash its reliance on Beijing for yet another critical mineral.

South Korea currently imports more than 90% of its molybdenum from China. Almonty’s discovery, estimated at 120 million tonnes of resource, includes a high-grade zone of 16 million tonnes grading 0.4% molybdenum. Company management puts the potential mine life at over 60 years. Crucially, the molybdenum sits directly on top of the existing tungsten operation, meaning Almonty can tap into the mine’s already-built infrastructure — a cost advantage that could save tens of millions in development spending.

Drilling is well under way to quantify the find. Of a planned 26-hole programme, 37% has been completed, with the remaining results expected by the end of this year. Almonty chief Lewis Black has highlighted the dual-metal synergy as a game-changer for the site, which is already being expanded to become a global tungsten powerhouse.

Tungsten production gathers pace amid supply panic

The timing could hardly be more critical. China — which along with Russia and North Korea controls roughly 95% of global tungsten supply — began tightening export screws in late 2025 as part of its retaliatory trade measures against US tariffs. By January 2026, Beijing had restricted tungsten exports to just 15 authorised companies, giving the state full control over volume, timing and destination.

The fallout is already reaching Japan’s chip industry. Two major Japanese chemical firms, Showa Denko Kanto and Central Glass, have warned Samsung, SK Hynix and DB HiTek that their stockpiles of tungsten hexafluoride — a gas vital for producing advanced 3? to 7?nanometre chips — are running so low that production lines could idle by July 2026. Japan accounts for a quarter of global tungsten hexafluoride output.

Almonty’s Sangdong mine is one of the few large-scale tungsten sources outside China. Commercial production began in December 2025, and by March 2026 the mine had completed its initial commissioning phase, ramping up to full operation. The financial results are already turning heads: first?quarter revenue surged 221% to C$25.4 million, operating cash flow swung from negative to positive C$9.7 million, and adjusted EBITDA posted a profit of C$6.1 million after a loss in the prior period.

The operation currently processes 640,000 tonnes of ore annually, yielding about 2,300 tonnes of tungsten concentrate. A second expansion stage, scheduled for 2027, will double that capacity. To fund the build?out, Almonty raised a C$773 million convertible bond carrying a 2.25% coupon and maturing in 2031.

A geopolitical pivot crosses the Pacific

Almonty is reshaping its corporate identity to match the new strategic reality. It recently moved its headquarters from Toronto to Dillon, Montana, and is advancing a second tungsten project — Gentung — which could enter production in the second half of 2026. The rationale is clear: from January 2027, the US Department of Defense will be barred from buying Chinese tungsten, and America has not commercially mined the metal since 2015.

The boardroom is following suit. On 9 June, shareholders overwhelmingly voted in two retired US generals, Gustave F. Perna and Alan Estevez, with more than 99% support. And on 1 June, Jorge Beristain, a former Deutsche Bank mining analyst, took over as chief financial officer — a hire that signals Almonty is selling a geopolitical narrative as much as a metal.

Molybdenum prices lend support

Market conditions are also favourable for the new metal. Molybdenum traded at nearly $66,690 per tonne at the end of May, a slight rise from the previous month, driven by concerns that copper supply disruptions are squeezing output of the metal — often a by?product of copper mining.

For investors, the near?term focus will be on the remaining drill?hole data from Sangdong. But the broader picture is already clear: Almonty is positioning itself as a dual?critical?mineral supplier just as the West scrambles to build supply chains that are resilient — not just efficient. With Japan’s chip factories staring at a July cliff and Washington’s Pentagon procurement ban six months away, the timeline leaves little room for error.