Almonty Industries Reaches Critical Operational Milestone at Sangdong

After a decade of development work, Almonty Industries has initiated a pivotal strategic shift from project developer to active producer. The company has achieved a key operational milestone with the first ore delivery at its Sangdong tungsten mine in South Korea, a move with potential implications for reducing Western reliance on Chinese-sourced critical minerals.

The advancement comes at a time of heightened focus on supply chain security for strategic materials. China currently controls more than 80% of the global tungsten supply and implemented export controls in early 2025 in response to U.S. tariffs. This backdrop underscores the strategic importance of Sangdong, one of the largest historical tungsten deposits globally, with reserves of approximately 8.57 million tonnes and an estimated mine life exceeding 45 years.

Investors responded positively to the operational update. Shares climbed 6.64 percent on Thursday to reach US$8.35, reflecting market anticipation of the imminent commercial startup.

First Ore Delivery Triggers Commissioning Phase

The company announced the successful trucking of the first ore load to the Run-of-Mine (ROM) platform. This event represents the final logistical step before full-scale commercial production begins. At this facility, the rock will be sorted by grade ahead of processing, which involves several stages:

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• Primary and secondary crushing
• Grinding to achieve the required particle size
• Flotation to separate the tungsten mineral
• Final concentration and packaging for end customers

CEO Lewis Black characterized this moment as a strategic turning point for the company. Arif Priyambodo, General Manager for Processing, confirmed the completion of all essential preparatory work, including geological assessments and plant installation. The technical commissioning phase is now underway using specialized Finnish machinery.

Financial Foundation and Broader Strategic Vision

Almonty has fortified its financial position in parallel with its operational progress. A capital raise completed in December injected gross proceeds of US$129.4 million, securing liquidity for the production ramp-up phase.

Management is concurrently advancing its broader "Korean Trinity" vision. This strategy extends beyond tungsten production to include a dedicated oxide plant and the development of a deeper molybdenum resource. The objective is to establish South Korea as a global hub for tungsten processing, with the South Korean state providing a price floor protection mechanism against market manipulation.

While the formal mine opening ceremony is planned after the Korean winter, operational activities have commenced. Notably, an informal agreement is already in place reserving roughly 45 percent of future production for the U.S. market. This aligns with U.S. Department of Defense mandates effective from 2027, which require sourcing of critical materials like tungsten from non-Chinese suppliers.