Almonty Industries Reaches Key Operational Milestone with First Ore Shipment

Shares of Almonty Industries advanced significantly following a pivotal company announcement. The stock gained approximately 9% after the firm reported the first transport of ore from its Sangdong mine in South Korea to the run-of-mine (ROM) pad. This event marks the company's official transition from a development-stage entity to an operational producer, lifting its market capitalization to around US$2.79 billion. The development aligns with broader Western efforts, particularly by the United States, to secure supply chains for critical minerals and reduce reliance on China—a central theme for tungsten.

The delivery of initial ore to the ROM facility in Yeongwol, Gangwon Province, initiates the shift to regular mining activities at Sangdong. CEO Lewis Black characterized the move as a strategic turning point, not only for Almonty but also for its position within the global tungsten supply chain.

The mine's resource base is substantial, with proven reserves estimated at 7.9 million tonnes of ore. This material holds an average grade of 0.47% tungsten trioxide (WO3), equating to roughly 3.7 million metric ton units of tungsten. Historically, Sangdong was a major economic contributor, accounting for over 50% of South Korea's export revenues in the decades following the Korean War before being shuttered in the 1990s due to depressed commodity prices.

Operational Timeline and Readiness

Key preparatory work at the site is now complete, according to Arif Priyambodo, General Manager of Processing Operations. This encompassed several critical areas:

• Conducting geological surveys and ensuring ground stability
• Executing load tests and installing essential processing equipment
• Finalizing transport logistics and operational procedures for site personnel

The delivered ore will now proceed through primary and secondary crushing, milling, and flotation stages. The resulting concentrate will then be dried and packaged for customer shipment. The company's schedule targets full commissioning of the Sangdong processing plant by July 2026, to be followed by a period of production stabilization.

Geopolitical Context and Market Dynamics

This operational progress occurs against a backdrop of intensified U.S. policy moves to diversify sources of critical raw materials. In a related development announced the same day, the U.S. government pledged support for a US$7.4 billion Korea Zinc smelter project in Tennessee—marking the first new zinc refinery on American soil since the 1970s. These actions underscore a clear Washington-led objective to lessen dependence on Chinese supplies of metals and minerals.

China currently dominates the market, controlling more than 80% of global tungsten production. The United States, by contrast, has not mined any domestic tungsten since 2015. Market prices for the metal have recently hit a 12-year high, driven by robust demand from the defense sector—including for armor-piercing munitions—as well as from semiconductor manufacturing, AI hardware, and aerospace applications.

Financial Positioning and Corporate Structure

Almonty recently bolstered its balance sheet through a U.S. public equity offering that raised US$129.375 million. This follows a prior capital raise of US$90 million completed in July 2025 in connection with its NASDAQ listing. Subsequent to the latest financing, the company withdrew its base prospectus and related registration, signaling no immediate need for further equity dilution.

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Industry Standing and Integrated Strategy

The company is positioning itself as the largest tungsten producer outside of China. At full capacity, the Sangdong operation has the potential to supply nearly 40% of the non-Chinese global production. This directly addresses supply gaps highlighted by U.S. procurement rules and Chinese export controls.

Almonty's integrated "Korean Trinity" strategy involves combining Sangdong's output with a planned tungsten oxide plant and the development of an adjacent molybdenum deposit. The goal is to create a consolidated Korean hub for the extraction, refinement, and processing of these strategic metals.

Defense Sector as a Primary Demand Driver

The U.S. government has formally classified tungsten as a critical mineral for national security since 2018. New U.S. Department of Defense procurement mandates, set to take effect in 2027, will prohibit the sourcing of tungsten from China. This regulatory shift opens significant additional sales opportunities for suppliers like Almonty within the Western defense industry.

To strengthen its role in these supply chains, Almonty is relocating its legal domicile to the United States and has joined the Critical Minerals Forum, a resource and industrial policy platform supported by the Defense Advanced Research Projects Agency (DARPA).

A Mine Reborn

The restart of Sangdong signifies South Korea's return as a major global tungsten supplier. Almonty acquired the asset in 2015—the same year the U.S. ceased its own tungsten production—and has since invested nearly a decade in planning, permitting, and construction.

Forward-Looking Milestones

Several near-term catalysts are critical for the company's trajectory:

• July 2026: Target date for full commissioning of the Sangdong processing plant
• From 2027: Implementation of U.S. defense procurement rules mandating non-Chinese tungsten sources
• Ongoing: Steady production ramp-up toward full capacity

With advanced construction at Sangdong and ongoing ramp-up activities, Almonty is solidifying its transformation from developer to producer. The company also continues to operate the Panasqueira mine in Portugal and has expanded its portfolio in Western jurisdictions with the Gentung-Browns Lake Tungsten project in Montana.

The successful first ore shipment validates years of developmental work and underscores Almonty's emerging role in building independent Western tungsten supply chains. The strong positive market reaction reflects investor confidence that the company is structurally positioned to benefit from the current geopolitical tensions surrounding critical raw materials.