A New Era for Tungsten Supply as Almonty’s Flagship Mine Begins Operations

The long-standing dominance of China in supplying the critical mineral tungsten has faced a significant new challenge. Almonty Industries has transitioned its cornerstone Sangdong project in South Korea from development into active production, marking a potential strategic shift for global supply chains in defense and advanced technology.

On December 16, the company achieved a pivotal operational target by successfully moving its first ore to the designated "Run-of-Mine" pad. This event signifies the official commencement of mining activities, concluding the project's pure development phase. The processing plant, which includes crushing and milling circuits, is now operational and supporting the planned production ramp-up.

Sangdong is recognized as one of the world's largest tungsten deposits, with reserves totaling 7.9 million tonnes. At full projected capacity, the mine is expected to account for more than 80% of tungsten production originating outside of China.

Strategic Timing in a Critical Market

This production start occurs against a backdrop of intense geopolitical focus on supply chain security. Tungsten is essential for defense applications, semiconductor manufacturing, and AI hardware. Currently, China controls over 80% of the global supply, a situation that led the United States to classify the metal as a critical mineral in 2018.

Should investors sell immediately? Or is it worth buying Almonty?

Almonty's CEO, Lewis Black, characterized the initial ore extraction as a strategic turning point. The company's objective is for Sangdong to serve as a reliable source, reducing the dependence of the United States, the European Union, and Korea on Chinese exports. This move aligns with impending U.S. defense procurement regulations that will mandate sourcing of tungsten from outside China starting in 2027.

Financial Backing and Investor Sentiment

Supporting its operational progress, Almonty recently fortified its balance sheet. An equity financing round completed in early December raised approximately $130 million. These funds are allocated not only to finalizing the Korean project but also to expanding the Panasqueira mine in Portugal and advancing the Gentung Browns Lake project in Montana, USA.

The market responded favorably to the company's entry into the commercialization stage. Following the announcement, Almonty's shares on the Nasdaq exchange advanced by roughly 9%, elevating its market capitalization to around $2.79 billion.

The company's immediate focus is on stabilizing mining processes and scaling up to full production capacity. With major construction activities largely complete, Almonty is positioning itself as a cornerstone of alternative Western supply chains. A formal mine opening ceremony is scheduled for after the Korean winter concludes.