Western Tungsten Supply Chain Shifts Into Gear as Almonty Brings Sangdong Online

Almonty Industries begins processing tungsten ore at Sangdong mine in South Korea, targeting Western defense supply chains as Chinese export controls tighten and prices hit historic highs.

The race to secure critical mineral supply chains outside China is entering a new phase. Almonty Industries has begun feeding ore through its processing plant at the Sangdong mine in South Korea, turning a months-long stockpile into saleable tungsten concentrate. The move comes as Chinese export controls tighten and Western defense procurement policies push for alternative sources.

The company started feeding stockpiled material through the plant in June 2026, with active full-scale processing commencing in July. Ahead of that transition, the surface stockpile had grown to nearly 139,700 tonnes of ore with an average tungsten trioxide grade of roughly 0.25 percent. Management estimates the raw value of that inventory at approximately $68 million — enough to keep the processing plant running for about two and a half months at its initial capacity.

The ore itself has been accumulating for quarters. By the end of the first quarter of 2026, roughly 120,000 tonnes sat on site with an average grade of 0.24 percent. During the second quarter, the mining team extracted an additional 19,700 tonnes of development ore carrying a significantly higher grade of 0.35 percent. Underground development also progressed, with 214.6 metres of new drifts driven primarily along the main vein.

The ramp-up is deliberately gradual. Almonty is using the early phase to fine-tune blending and processing parameters, starting with lower-grade material before introducing higher-grade feed later. That measured approach is possible partly because even the low-grade Sangdong material contains roughly three times the tungsten content of ore from the company’s Panasqueira mine in Portugal. The existing stockpile provides a buffer for optimisation without pressure to hit maximum throughput immediately.

While operations were gearing up, the shareholder base underwent a structural shift. Almonty entered the Russell 1000 Index at the end of June, a milestone that opens the door to passive funds managing an estimated $12.2 trillion in assets. Many institutional investors were previously unable to hold the stock; index inclusion is expected to improve liquidity significantly as tracker funds adjust their portfolios.

The timing of the production start coincides with historically high tungsten prices and growing government urgency around critical minerals. Western allies are actively seeking to reduce reliance on Chinese supply, a dynamic reinforced by recent US defence procurement restrictions and Beijing's export controls on tungsten. Almonty’s Sangdong operation is positioned as a key source for the US defence industry, which has helped attract external capital.

In a separate move to strengthen its balance sheet, Almonty closed a $700 million convertible note issuance. The bonds carry a 2.25 percent coupon, mature in 2031, and have a conversion price of $27.40 per share. Demand was strong enough to trigger full exercise of a $100 million greenshoe option. The proceeds are earmarked for advancing the transition to full production.

Looking ahead, Sangdong is more than a single mine. Almonty plans to complement it with a downstream tungsten oxide processing facility and already has long-term offtake agreements in place. Together, those assets are intended to form a fully integrated tungsten value chain — one of the few outside China. With additional operations in Portugal and projects in Spain and the US, Almonty is betting that the structural shift in Western strategic mineral policy will keep demand strong for years to come. The question now is how quickly the stockpile of $68 million worth of ore translates into recognised revenue as Sangdong moves into sustained commercial operations.