After a hiatus exceeding three decades, the Sangdong tungsten mine in South Korea has officially recommenced production. Almonty Industries announced the completion of its Phase 1 commissioning, marking a pivotal strategic shift from project developer to active producer. This operational milestone coincides with a period of heightened geopolitical significance for tungsten, a critical metal.
The facility, located in Gangwon Province, is engineered to process approximately 640,000 tonnes of ore annually, with an output target of around 2,300 tonnes of tungsten concentrate per year. Sangdong is recognized as one of the world’s most substantial and highest-grade deposits, holding reserves estimated at 7.9 million tonnes.
Institutional Capital Flows Signal Confidence
Growing interest from institutional investors has become increasingly evident. The number of funds holding positions in Almonty surged by more than 55% last quarter, reaching 107. Significant investments have been noted, with Van Eck Associates expanding its stake to 11.24 million shares, valued at roughly $99 million. Additional capital commitments came from Encompass Capital Advisors and Next Century Growth Investors, which invested approximately $25.6 million and $16.3 million, respectively. In 2025, the company raised gross proceeds exceeding $219 million through two U.S. capital raises.
Beyond Sangdong, Almonty is advancing capacity expansion at its Panasqueira mine in Portugal. Furthermore, the development of the Gentung Browns Lake project in the United States is underway, with potential production readiness as early as the second half of 2026.
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Geopolitical Tensions and Supply Dynamics
The mine’s restart occurs against a backdrop of significant market tension. In February 2025, China imposed export restrictions on five critical raw materials, including tungsten—a commodity where China commands approximately 88% of global production. Compounding this, the United States plans to prohibit imports of Chinese tungsten for defense purposes starting in 2027.
Sangdong is strategically positioned to address this supply dependency. Upon reaching full capacity—planned for 2027 with a Phase 2 expansion to 1.2 million tonnes of ore per year, yielding about 4,600 tonnes of concentrate—the operation could satisfy an estimated 40% of global tungsten demand originating from outside China.
Forthcoming Financials to Provide Crucial Insight
Almonty is scheduled to release its quarterly financial results on March 26. These figures will represent the first report to reflect both historically elevated tungsten prices and the initial production contributions from Sangdong. Detailed data on cash flow, margins, and production costs will be scrutinized to assess whether the company can effectively convert the current market supply gap into sustainable profitability.
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