Almonty Industries has reached a major milestone at its Sangdong tungsten mine in South Korea, moving the project from construction and commissioning into early-stage production. The company announced that it began processing stockpiled run-of-mine ore through the newly commissioned plant in June 2026, marking the first conversion of mined material into saleable tungsten concentrate.
The achievement represents a significant turning point for a project that has spent years in development and is now entering the revenue-generation phase. More importantly, Sangdong arrives at a time when tungsten has become one of the most strategically important critical minerals outside China, driven by rising demand from defence, aerospace, electronics and advanced manufacturing industries.
Sangdong Becomes a Strategic Non-China Tungsten Supply Project
Located in Gangwon Province, South Korea, Sangdong is positioned by Almonty as the company’s flagship asset and one of the most important tungsten projects currently moving toward commercial production outside China.
The company is listed on:
- Nasdaq
- Toronto Stock Exchange (TSX)
- Australian Securities Exchange (ASX)
- Frankfurt Stock Exchange
This gives Sangdong significant exposure across global capital markets at a time when governments and industries are increasingly focused on securing alternative sources of critical raw materials. Unlike traditional commodity projects evaluated mainly through production volumes and costs, Sangdong is gaining attention because of its role in strengthening supply-chain resilience for a metal considered essential to strategic industries.
Initial Stockpile Provides Foundation for Production Ramp-Up
Almonty has built an initial operating base through stockpiled ore prepared ahead of the processing start.
At the end of the first quarter of 2026, the company reported approximately:
- 120,000 tonnes of stockpiled ore
- Average grade of 0.24% WO₃ (tungsten trioxide)
During the second quarter, Almonty added another:
- 19,700 tonnes of development ore
- Average grade of 0.35% WO₃
The company also advanced underground development by approximately 214.6 metres, mainly along the Main Vein.
Following these additions, Sangdong held around:
- 139,700 tonnes of available stockpiled ore
- Blended grade of approximately 0.25% WO₃
This material provides feedstock for the early production phase while underground mining continues to expand future supply.
Lower-Grade Feed Supports a Controlled Plant Start-Up
During the initial ramp-up period, Almonty is intentionally processing lower-grade stockpiled material.
This is a common approach in mining operations designed to:
- Stabilise processing equipment
- Test plant performance
- Optimise ore blending
- Improve recovery consistency
- Reduce operational risk during commissioning
The company estimates that the current stockpile represents approximately 2.6 months of Phase I processing feed. Based on prevailing tungsten prices, Almonty has indicated that the stockpile represents an illustrative gross in-process value of approximately US$68 million. The company must still demonstrate consistent production performance before the project can be considered a fully established commercial operation.
Tungsten Market Conditions Create a Unique Opportunity
Sangdong’s timing coincides with a dramatic shift in the global tungsten market.
Tungsten prices reached record levels in 2026 as a result of:
- Chinese export restrictions
- Limited global supply growth
- Rising defence demand
- Increased concern over supply-chain security
Industry reports showed that ammonium paratungstate (APT) prices in Rotterdam exceeded US$3,000 per metric tonne, representing a substantial increase since the beginning of the year. China’s decision to restrict future tungsten exports to selected licensed companies for 2026–2027 further intensified concerns about supply availability. This has transformed tungsten from a niche industrial commodity into a strategic material with geopolitical importance.
Tungsten’s Importance Extends Beyond Market Size
Although the tungsten market is relatively small compared with metals such as copper or lithium, its industrial importance is significant.
The metal is widely used in:
- Defence equipment
- Armour-piercing applications
- Aerospace components
- Electronics
- High-temperature industrial systems
- Cutting tools and hard metals
Its unique physical properties, including extreme hardness and high melting point, make it difficult to replace in many applications. The United States currently has no active commercial tungsten mines, increasing reliance on international suppliers and highlighting the strategic importance of new production outside China.
Sangdong Aligns With Europe’s Critical Minerals Strategy
Although located in South Korea, Sangdong fits directly into the broader Western effort to diversify critical mineral supply chains. The European Union classifies tungsten as a critical raw material, recognising both its economic importance and the risks associated with concentrated supply.
European policymakers have increasingly emphasised that secure access to critical minerals is necessary for:
- Industrial competitiveness
- Defence capabilities
- Digital technologies
- Clean-energy systems
- Advanced manufacturing
Projects capable of delivering reliable non-China supply are therefore receiving increased attention from governments, investors and industrial consumers.
Almonty Targets a Broader Tungsten Value Chain
Almonty’s strategy extends beyond mining tungsten ore.
The company aims to develop a more integrated tungsten platform that includes:
- Mining operations
- Processing capacity
- Downstream tungsten oxide production
- Long-term customer relationships
This reflects a broader shift in the critical minerals industry.
Supply security is no longer determined only by who owns mineral deposits.
Increasingly, value is created through control of:
- Processing technology
- Intermediate products
- Customer qualification
- Defence supply channels
- Long-term offtake agreements
A mine without processing capability may have limited strategic value, while an integrated supply platform can become a critical industrial asset.
Major Financing Strengthens Almonty’s Growth Position
Almonty’s financial position has also improved significantly as Sangdong approaches commercial production. In June, the company completed an oversubscribed US$700 million convertible senior notes offering, including the full exercise of a US$100 million over-allotment option.
The transaction generated approximately US$772.7 million in net proceeds after costs. The financing provides Almonty with a stronger balance sheet at a crucial moment, allowing the company to advance Sangdong and pursue its broader tungsten strategy. For investors, this marks a transition from a pure development-stage story toward a company increasingly evaluated on operational execution and cash-flow potential.
Production Success Will Depend on Execution
Despite the positive momentum, significant challenges remain.
The next phase of Sangdong’s development will depend on:
- Stable plant performance
- Metallurgical recovery rates
- Concentrate quality
- Underground development progress
- Consistent commercial shipments
The current processing strategy indicates that Almonty remains in the optimisation stage rather than full steady-state production. For any mining project, initial concentrate production is only the first milestone.
Long-term success requires:
- Reliable output
- Customer acceptance
- Consistent product quality
- Sustainable operating performance
Sangdong Could Become a Test Case for Western Critical Minerals Supply
The broader significance of Sangdong extends beyond a single tungsten mine. The project represents a real-world test of whether Western-aligned critical minerals projects can move from government policy discussions into actual physical supply. China’s export restrictions have changed the nature of the tungsten market. Availability is now becoming as important as price.
That environment creates an opportunity for projects such as Sangdong, which combine:
- A strategic commodity
- Non-China production
- Public-market financing
- Potential long-term customer demand
A New Era for Tungsten Supply Chains
Almonty’s transition into saleable tungsten concentrate production marks more than the revival of a historic mining asset. It represents a broader shift in global commodities, where strategic importance, geopolitical risk and supply-chain security increasingly influence investment decisions.
The coming quarters will determine whether Sangdong can transform favourable market conditions, strong financing support and substantial ore inventory into reliable long-term production. If successful, the project could become one of the most important non-China tungsten supply sources and a model for how critical mineral projects can support global industrial resilience.
