Almonty Industries (NASDAQ: ALM) has received approval from the South Korean government to commercially process tungsten concentrate at the Sangdong tungsten mine, clearing the final regulatory hurdle needed to launch production operations. South Korean authorities issued mining facility inspection certificates on September 17, 2026, authorizing Almonty to operate Sangdong's crushing and processing facilities and sell tungsten concentrate to domestic and international markets. The Sangdong facility is expected to produce approximately 200,000 metric tonne units (MTU) of tungsten concentrate per year.
The approval represents a significant milestone for the company, which has been producing tungsten ore through the plant since mid-2026 and will now convert that material into concentrate for export. The Sangdong mine was historically one of the world's largest tungsten producers before operations were suspended in the early 1990s during a prolonged commodity price downturn. Since acquiring the project in 2015, Almonty has invested more than $100 million to redevelop the site as a modern underground mining operation with a newly constructed processing plant.
The timing of the approval is strategically important, as tungsten prices are at historic highs and China has implemented strict export controls on the material. Almonty CEO Lewis Black noted that commencing January 2027, United States defense procurement rules will require traceability to the source of ore mining, and Sangdong is positioned as one of very few assets that can provide a Western origin with sufficient scale to matter in the market. Tungsten is a vital metal for defense and high-tech electronics applications.
More than 90% of Sangdong's Phase I production is already contracted to Global Tungsten & Powers LLC, part of Austria's Plansee Group, under a 21-year offtake agreement that includes a total contracted volume of 4,410,000 MTU of tungsten concentrate, with minimum annual production of at least 210,000 MTU. Almonty has also agreed to supply tungsten to Sandvik from tailings at its Los Santos mine in Spain, another arrangement designed to reduce Western reliance on Chinese tungsten supply. The market responded positively to the approval announcement, with Almonty Industries shares rising 6.43% to $14.73 per share by mid-day Monday in New York, valuing the company at $4.2 billion.
The achievement represents a key step in addressing global tungsten supply chain concerns and strengthening Western access to this critical mineral.
Source: mining.com