Almonty’s Twin Engines: A Korean Mine Ramps Up as Montana’s Tungsten District Heats Up

Processing fees surge fivefold amid Chinese export controls; Almonty's Sangdong mine begins commercial output, with US defense demand locked in from 2027.

The tungsten supply crisis gripping the West is no longer a theoretical risk—it is a market reality playing out in real time. And Almonty Industries, straddling two continents with operations in South Korea and the United States, finds itself at the centre of a geopolitical and industrial pivot that is reshaping the critical minerals landscape.

Processing fees for tungsten have surged from roughly $300 per metric tonne unit a year ago to over $1,775, a more than fivefold increase that underscores the severity of the shortage. The catalyst? Chinese export controls have drained Western stockpiles to dangerously low levels, leaving industries from semiconductors to defence scrambling for alternatives.

Sangdong Delivers First Commercial Output

Almonty’s flagship Sangdong mine in South Korea exited its commissioning phase at the end of March and has now entered commercial production. The May quarterly report will provide the first hard data on operational performance, offering investors a chance to measure reality against the ambitious projections that have driven the stock’s meteoric rise.

Phase 1 of Sangdong is designed to process roughly 640,000 tonnes of ore annually, yielding an expected 2,300 tonnes of tungsten concentrate. The average ore grade of around 0.51% tungsten trioxide is approximately three times the global average, giving the operation a significant cost advantage. Analysts at DA Davidson expect full commercial capacity to be reached by the second quarter of 2026.

A Phase 2 expansion, slated for 2027, would double processing capacity to approximately 1.2 million tonnes of ore per year. At full tilt, Sangdong could supply roughly 40% of all tungsten demand outside China.

Pentagon Mandate Creates Captive Demand

From 1 January 2027, US defence contractors will be required to source tungsten exclusively from non-Chinese suppliers. Almonty is already locked in: the company holds a long-term offtake agreement with Global Tungsten & Powders in Pennsylvania, and tungsten ores and concentrates have been explicitly exempted from the new US retaliatory tariffs. Nearly half of Sangdong’s production is reserved for American buyers.

The analyst community has taken notice. Seven houses now cover the stock, six with Buy ratings. Texas Capital initiated coverage on 17 April with a $25 price target, while B. Riley Financial and DA Davidson sit at $23 and $25 respectively. The company ended fiscal 2025 with $268.4 million in cash.

A Neighbour Stakes a Claim in Montana

While Sangdong grabs the headlines, Almonty’s US footprint is quietly expanding. On 30 April, Australian explorer Red Mountain Mining secured an exclusive 30-day option on the Pioneer Tungsten Project, a roughly 2,000-hectare property directly adjacent to Almonty’s existing claims in Montana. Historical drilling in the Greenstone zone returned intercepts of 10.7 metres at 0.48% WO3—enough to pique interest in what is shaping up to be a nascent tungsten district.

Almonty itself relocated its corporate headquarters to Dillon, Montana, in April 2026. The company holds the Gentung Tungsten Project in Beaverhead County, with verified mineral resources of 7.53 million tonnes grading 0.315% WO3. Production is expected to begin in the second half of 2026, with a planned annual capacity of roughly 140,000 metric tonne units of WO3.

Price Explosion Fuels the Narrative

The broader market backdrop has only intensified. Ammonium paratungstate (APT), a key tungsten intermediate, cost around $900 per metric tonne unit at the end of 2025. By April 2026, the price had surged past $3,000—a gain of more than 230% in a matter of months.

Three forces are driving the rally: China’s tightened export restrictions have squeezed global supply; the defence industry is demanding more tungsten-based alloys; and the US is actively reducing its reliance on imported critical minerals.

Board Faces a Capital Structure Decision

Today, 30 April, marks the deadline for Almonty’s board to decide whether to implement a reverse stock split—approved by shareholders at a ratio of up to five old shares for one new one—or to scrap the plan. The decision will be discussed further at the annual general meeting on 8 June, where the Phase 2 expansion will also be put to a vote.

The stock has gained roughly 660% over the past twelve months, closing recently at C$27.71. However, it has pulled back about 13% in the past week, suggesting profit-taking ahead of the first real production data. Since the start of 2026, the shares are up more than 123%, though they sit around 16% below the all-time high set in April, with annualised volatility hovering near 100%.

Funding in Place for the Ramp-Up

Almonty has already secured the capital needed to execute. A Nasdaq IPO in July 2025 raised $90 million, followed by a further $129 million financing round in December. That cash is flowing into operational buildout in the US and the reactivation of tungsten processing facilities.

With Gentung’s production start approaching and APT prices at multi-year highs, the next six months will be decisive. Whether the timelines hold will become clear by the third quarter of 2026.