Almonty Industries: Securing a Strategic Foothold in the Global Tungsten Race

As Western nations intensify efforts to diversify critical mineral supply chains away from China, Almonty Industries is emerging as a pivotal player. The tungsten-focused mining company has recently announced two major developments: a landmark supply agreement with the U.S. government and the commencement of commercial production at a key Asian asset. These moves position the firm at the intersection of geopolitics and resource security.

The transition from development to active mining became a reality in mid-December when the first truckload of ore departed the Sangdong mine in South Korea. This event marks the official start of production at what is considered one of the largest tungsten deposits outside of China.

The project's scale is underscored by its key metrics:
* Substantial Reserves: 7.9 million tonnes grading 0.47% tungsten oxide.
* Annual Target: A production rate of 1.2 million tonnes of ore per year.
* Operational Cadence: The processing plant is designed for 24-hour operation.
* Full Capacity: Commercial production at full capacity is anticipated by Q1 2026.

Historically, Sangdong was a major economic contributor, accounting for over 50% of South Korea’s export revenue before its closure in the 1990s due to price pressures from Chinese suppliers.

A Vital Agreement with U.S. Defense

The strategic importance of Almonty’s assets was highlighted in recent coverage by CBS News, which featured CEO Lewis Black. Following discussions with officials in Washington, Black formalized a supply agreement to provide tungsten—deemed a "vital" material—to the U.S. defense industrial base.

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This partnership addresses a pressing vulnerability. China currently controls more than 80% of the global tungsten supply, a metal essential for advanced manufacturing and defense applications. Almonty’s developing resources are thus gaining recognition as a factor in geopolitical strategy.

Financial Foundation for Growth

To fund its ambitious expansion, Almonty significantly bolstered its balance sheet. On December 10, the company closed an oversubscribed placement, raising gross proceeds of approximately US$129 million. The shares were issued at a price of US$6.25 each.

This new capital is earmarked for exploration and development at its projects in Portugal and South Korea, as well as for expansion into the United States. In November, the company established its first operational base on American soil through the acquisition of the "Gentung Browns Lake" project in Montana. While production there remains years away, the purchase aligns with a long-term strategy to build a domestic U.S. supply source.

Market Recognition and Analyst Outlook

Almonty’s strategic repositioning is reflected in its market valuation. Since its Nasdaq listing in July 2025, the company’s market capitalization has approached the US$3 billion mark. Analysts at DA Davidson recently reaffirmed a buy rating on the stock, raising their price target to US$12.

The critical near-term focus is the successful ramp-up of the Sangdong mine. If the company achieves full commercial production as scheduled in early 2026, Almonty could account for over 80% of the world’s tungsten supply originating outside of China, fundamentally altering the global market landscape.