Almonty Industries Reopens Major Tungsten Mine Amid Global Supply Shift

A critical tungsten mine in South Korea has resumed operations after more than 30 years of dormancy, marking a significant strategic development for Western supply chains. Almonty Industries announced the official commissioning of the first phase of its historic Sangdong mine. This move strategically positions the company as a key supplier to the defense and technology sectors outside China, coinciding with severe export restrictions from Beijing and soaring commodity prices.

Strategic Significance and Production Details

The operational launch precedes a formal inauguration ceremony scheduled for Tuesday, which will be attended by over 200 representatives from the South Korean government and the U.S. Embassy. The high-level diplomatic presence underscores the project’s geopolitical importance. With the initial phase now complete, the facility is capable of processing approximately 640,000 tonnes of ore annually, yielding about 2,300 tonnes of tungsten concentrate each year.

Sangdong boasts an average tungsten trioxide grade of 0.51%, a figure that triples the global average. The mine’s operational life is projected to exceed 45 years, offering long-term supply security.

Geopolitical Tensions Fueling Market Dynamics

The mine’s reopening occurs during a period of intense market pressure. China, which has historically dominated global tungsten supply with roughly 80% control, implemented stringent export limitations in late 2025. Analysts from BMO Capital Markets reported that Chinese shipments temporarily ground to a complete halt at times. As a direct consequence, tungsten prices surged by more than 160% over the past year.

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Further compounding the supply shortage is a new U.S. Department of Defense directive. Effective January 2027, the Pentagon will prohibit the procurement of tungsten from non-allied nations, including China, Russia, and North Korea. The metal is indispensable for armor-piercing munitions and advanced armor systems.

Expansion Plans and Growing Institutional Backing

Almonty is already planning its next expansion. A second development phase, targeted for 2027, aims to double the South Korean production capacity to 4,600 tonnes per year. Financially, the company is fully funded for its current project pipeline following an oversubscribed capital raise in December 2025 that secured US$129.4 million. Beyond South Korea, management is advancing mine expansions in Portugal and developing a new project in the United States.

This operational momentum is attracting significant institutional interest. The number of invested institutional funds jumped by 55% to 107 in the last quarter. Major players like Van Eck Associates increased their holdings to over 11 million shares, while new entrants such as Encompass Capital Advisors established positions worth tens of millions of dollars.

Investors are now looking ahead to Almonty’s quarterly results, set for release on March 26, 2026. This report is anticipated to provide the first comprehensive financial snapshot reflecting Sangdong’s operational start, including crucial data on margin development and actual mining costs under the current historically high tungsten price environment.