The first ore is moving through the mill at Almonty Industries’ Sangdong mine in South Korea, transforming the long-developing tungsten project from a capital-intensive build into an active production asset. The timing could hardly be more fortuitous: Beijing has tightened its grip on the global tungsten market, and the West is scrambling for alternatives.
China controls roughly 80 percent of the world’s tungsten output. Recent export curbs targeting buyers in the US and Japan have sharpened the urgency. The G7 nations have set a goal of cutting reliance on any single supplier below 60 percent by 2030. That puts Almonty’s Sangdong — one of the few non-Chinese tungsten sources of scale — squarely in the crosshairs of defence and high-tech procurement strategies. Market observers have already drawn parallels between the Canadian company and defence heavyweights like Rheinmetall or RTX, noting that modern weapons systems cannot function without tungsten.
Management chose a cautious ramp-up. The processing plant is starting on lower-grade ore drawn from a stockpile of nearly 140,000 tonnes built up through June. That inventory is enough to keep the mill running for about two-and-a-half months and, at prevailing spot prices, carries a gross value of roughly $68 million. Later, the operation will switch to higher-grade material as full production stabilises.
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The shift from developer to producer has reshaped the risk profile. Project-related uncertainty declines significantly as revenue-generating sales of tungsten concentrate come into view. The underlying commodity market supports that transition: tungsten prices have held firm during this critical commissioning phase.
Investors, however, took a cautious stance after the announcement. The stock closed at C$23.14 on Friday, reflecting typical profit-taking after a major milestone. The equity has enjoyed a stellar run — up 92 percent since the start of the year and a staggering 210 percent over the past twelve months — but has cooled from its peak. The current price sits roughly 30 percent below the recent 52-week high, though it still trades comfortably above its 200-day moving average. The move has pulled the stock about 11 percent below its 50-day average, with the relative strength index at a neutral 43.
The consolidation on high ground is a familiar pattern after such a catalytic event. With production now live, the focus shifts from project risk to operational execution and cash flow generation. Almonty has cemented its role as a strategic supplier outside China’s orbit, and the timing of that transition aligns with a geopolitical environment that prizes supply-chain autonomy more than ever.
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