Almonty Industries has officially moved its South Korean Sangdong mine from development into commercial production. The commencement of operations, marked by the first delivery of ore to the run-of-mine pad, positions the project on a path to potentially become the largest tungsten mine in the Western world. This advancement places the company at the heart of strategic discussions concerning the security of supply for critical minerals.
A Strategic Pivot in the Global Tungsten Market
On December 16, the inaugural truckload of ore was deposited at the ROM pad of the Sangdong mine in Yeongwol, Gangwon Province. This event signifies the conclusion of the pure development phase and the initiation of regular mining activities, representing the final operational hurdle before ramping up to full-scale output.
Chief Executive Officer Lewis Black described the initial ore placement as a “strategic inflection point” for Almonty’s role within the global tungsten supply chain. The Sangdong operation is intended to help reduce a significant reliance on China, which currently accounts for over 80% of the world’s tungsten supply.
The delivered ore will now proceed through crushing and grinding circuits to achieve the required particle size. Subsequently, a flotation process will selectively separate, concentrate, dry, and package the tungsten-bearing minerals for shipment to customers.
Resource Scale and Geopolitical Relevance
Project Resource Metrics
Sangdong is recognized as one of the planet’s largest and highest-grade tungsten deposits. According to company data, the mine holds:
- Reserves of 7.9 million tonnes of ore grading 0.47% tungsten trioxide (WO₃)
- Approximately 3.7 million metric tonne units of contained tungsten
- An additional 50.7 million tonnes of inferred resources at 0.43% WO₃ – cited by the company as the world’s largest tungsten deposit by inferred resources
Almonty states that the average ore grade of roughly 0.51% WO₃ is about three times the global average, positioning Sangdong as a premium source of the metal.
Addressing Supply Chain Security
The U.S. government has classified tungsten as a critical mineral since 2018. The material is vital for defense applications, semiconductors, AI hardware, aerospace, and other high-technology sectors. Against this backdrop, the restart of Sangdong aims to mitigate supply risks for Western nations.
Upon reaching full capacity, the mine is projected to supply more than 80% of non-Chinese tungsten production. This output will also support U.S. procurement mandates requiring tungsten sourcing from outside China starting in 2027.
Operational and Financial Updates
Management Strengthening
Effective December 1, Almonty appointed retired Brigadier General Steven L. Allen as its new Chief Operating Officer. His mandate is to optimize tungsten deliveries from both the Sangdong mine and the company’s Panasqueira operation in Portugal. This appointment underscores a focus on operational excellence during the transition to a producing company.
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Robust Financial Position
Following its Nasdaq listing in July and subsequent financing activities, Almonty reported liquid funds of $111.6 million as of September 30. In December, the company also closed an upsized, fully underwritten public offering of shares, raising gross proceeds of $129.375 million, which included the full exercise of the over-allotment option.
Third Quarter 2025 Financial Highlights
For the three months ended September 30, 2025, Almonty reported:
- Revenue of $8.7 million, a 28% year-over-year increase
- Net earnings of $33.2 million, primarily driven by a fair value gain on warrants
- Stable production from its Panasqueira mine in Portugal
The Long-Term “Korean Trinity” Vision
CEO Lewis Black outlined an integrated long-term strategy dubbed the “Korean Trinity”:
- The Sangdong Tungsten Mine – now in commercial operation.
- A Tungsten Oxide Plant – a planned downstream processing facility.
- A Molybdenum Project – a large-scale drilling program initiated in September 2025.
The objective is to establish Korea as a global hub for tungsten production, refining, and value addition, thereby reducing the region’s current heavy dependence on Chinese tungsten oxide imports. Almonty’s project pipeline is designed to fulfill this exact goal.
Market Context and Forward Trajectory
Shifting Global Dynamics
China’s export controls on critical raw materials, including tungsten, which took effect in December 2024, have intensified the global debate on supply security. Almonty’s production from conflict-free, democratic jurisdictions (South Korea, Portugal, the U.S.) is intended to establish the firm as a strategic supplier for Western partners.
Upcoming Catalysts
The company highlighted several forthcoming milestones:
- Production Ramp-Up: Crushing, grinding, and flotation circuits are proceeding on schedule toward full capacity.
- Gentung Project (U.S.): A tungsten project in Montana targeting a near-term production start in the second half of 2026.
- Sangdong Phase-II Expansion: A planned capacity increase slated for 2026/2027.
Analyst Perspectives
Data from Yahoo Finance indicates the average analyst price target for Almonty shares stands at $10.74. DA Davidson maintains a “Buy” rating and raised its price target to $12 in November.
Strategic Positioning for the Coming Years
With the launch of commercial production at Sangdong, Almonty is transitioning from a developer to a producing supplier in the critical minerals sector. The combination of a large, high-grade resource, a geopolitically relevant supply chain, and a solid capital base provides a foundation for the planned capacity expansion, the execution of the “Korean Trinity” strategy, and the concurrent development of the U.S. Gentung project through at least 2027.
Market capitalization as of December 2025: approximately $2.79 billion.
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