Tungsten’s Geopolitical Gamble: How Almonty Turned a Korean Mine Into a Western Supply Lifeline

Almonty’s Sangdong mine hits full output as Pentagon’s 2027 Chinese tungsten ban reshapes supply, driving stock up 725% amid soaring prices and US defense deals.

The Pentagon’s 2027 ban on Chinese tungsten imports has already reshaped the global supply chain — and Almonty Industries is cashing in before the deadline even arrives. The company’s Sangdong mine in South Korea has just hit full commercial production, processing 640,000 tonnes of ore annually to yield roughly 2,300 tonnes of tungsten concentrate. That first-phase capacity is already spoken for, thanks to a 15-year offtake agreement with a price floor that locks in more than 90% of output.

The timing couldn’t be tighter. China has slashed its export licenses to just 15 state-controlled entities, and shipments of ammonium paratungstate — the key processed form of tungsten — nearly ground to a halt in early 2026. The spot price has surged past $3,200 per tonne, more than double the historical average. Japanese semiconductor suppliers are now warning Samsung and SK Hynix that inventories of tungsten hexafluoride, critical for memory chip production, are running dangerously low.

Almonty’s geological advantage gives it breathing room. Sangdong’s ore grade stands at 0.51%, three times the global average, ensuring healthy margins even if prices correct. A binding monthly agreement with US defence contractor Tungsten Parts Wyoming guarantees at least 40 tonnes of tungsten oxide will flow directly into American missile and drone systems. Washington has explicitly exempted the company’s ores and concentrates from US tariffs, removing another layer of uncertainty.

The stock market has taken notice. Shares in Toronto have surged 725% over the past year, hitting a record high of C$32.07 before pulling back roughly 13% as investors lock in profits. Friday’s close at C$27.97 represented a daily dip of nearly 5%, but the broader trajectory remains firmly upward. The recent quarterly loss of $102 million — driven largely by an $87 million accounting charge on derivative liabilities tied to the stock’s own rally — has done little to dampen sentiment.

Management is already looking beyond Sangdong’s first phase. A second expansion, slated for completion by the end of 2027, will double throughput to 1.2 million tonnes annually. At that stage, Almonty expects to cover roughly 40% of all tungsten demand outside China. The company has also relocated its headquarters from Toronto to Dillon, Montana, positioning itself closer to the Gentung project, where mining is scheduled to begin in the second half of 2026.

A capital raise in late 2025 brought in approximately $129 million, providing the financial firepower to develop that US operation. The strategic pivot mirrors Washington’s push to rebuild domestic supply chains for critical minerals. From January 2027, Pentagon contractors will be barred outright from purchasing Chinese tungsten, creating a captive market for western producers.

Almonty will release its next quarterly report on May 21, offering the first concrete production figures from Sangdong. The annual shareholder meeting on June 8 will then lay out the detailed timeline for phase two. For a company that was still ramping up just weeks ago, the transition to full output marks a decisive shift — from developer to the West’s primary tungsten supplier.