Almonty Industries Transitions to Producer with Key Mine Launch

Almonty CA0203981034

Almonty Industries has formally initiated commercial mining operations at its Sangdong tungsten asset in South Korea, marking a pivotal strategic shift from project developer to active producer. This move establishes the company as a potential cornerstone in Western supply chains for materials deemed critical.

The commencement of production triggered significant investor interest, driving Almonty's share price approximately 9% higher on the NASDAQ. Year-to-date, the equity has surged more than 370%, a rally largely fueled by anticipation of this operational milestone. The company's market capitalization concurrently rose to around $2.79 billion as the market validated the project's progress.

This development carries substantial geopolitical weight. Currently, China controls over 80% of global tungsten supply, creating strategic dependencies for Western nations. The U.S. government has classified tungsten as a critical mineral since 2018, noting its essential role in defense applications. Lewis Black, Almonty's CEO, characterized the first ore delivery as a strategic inflection point for bolstering global tungsten supply chains outside of Chinese dominance.

Operational Milestone at Sangdong

The company announced that the first truckload of ore was successfully deposited at the Sangdong mine's Run-of-Mine (ROM) pad. This action signifies the transition from advanced development into active extraction and is considered the final stage before achieving full-scale production.

The ROM pad functions as a holding area for freshly extracted material. From this point, the ore will undergo a multi-stage processing chain:
* Initial crushing stages to reduce ore size
* Milling to achieve the specific particle size required for further treatment
* A flotation circuit designed to selectively separate tungsten-bearing minerals
* Final concentration, drying, and packaging for shipment

According to Arif Priyambodo, General Manager of Processing Operations, all critical preparatory work—including geological surveys, ground stabilization, load testing, and plant installation—is complete. The successful first delivery to the ROM pad confirms that the storage area, haulage routes, equipment deployment, and crew procedures are operating safely and as planned under production conditions.

The "Korean Trinity" and Long-Term Vision

CEO Lewis Black outlined a comprehensive long-term strategy dubbed the "Korean Trinity." This framework envisions an integrated value chain for strategic minerals, comprising three core elements:
1. Tungsten extraction from the Sangdong mine
2. A planned downstream facility for processing tungsten oxide
3. Development of an adjacent molybdenum deposit

This integrated system aims to position South Korea as a global hub for tungsten production, refinement, and processing. It is also designed to address upcoming U.S. procurement mandates requiring non-Chinese tungsten sources by 2027 and to reduce South Korea's heavy reliance on Chinese tungsten oxide imports. Management believes this strategy will contribute materially to the resource security of the U.S. and its allies.

At full projected capacity, the Sangdong mine is expected to account for more than 80% of the world's tungsten production outside of China, directly addressing vulnerabilities exposed by recent U.S. defense procurement rules and Chinese export controls.

Resource Profile and Forward Path

Located in South Korea's northeastern Gangwon province, Sangdong is regarded as one of the world's largest and highest-grade tungsten deposits. The start of ore haulage represents the operational beginning of exploiting this resource. The next crucial phase will be ramping up the fully integrated processing circuit to steady-state commercial production.

Two factors are now paramount for Almonty's trajectory: the climb to the mine's targeted production capacity and progress on the planned downstream projects—specifically the tungsten oxide plant and the molybdenum venture. Both components are integral to the "Korean Trinity" vision and central to Almonty's long-term positioning within the global tungsten market.