Almonty Industries has successfully moved its flagship Sangdong tungsten mine in South Korea from construction into active production. This critical transition marks a significant step in the company’s strategy to become a major supplier of tungsten outside of China, a goal increasingly prioritized by Western nations. The company’s ability to navigate a complex market environment now comes into sharper focus.
A Tightening Market and Strategic Positioning
The commencement of operations at Sangdong occurs against a backdrop of dramatic price movements and shifting supply chains. Throughout 2025, the price of tungsten surged by over 160%. This rally is primarily attributed to export restrictions from China, which currently accounts for more than 80% of global production.
Further market pressure stems from U.S. policy: starting in 2027, a ban on importing Chinese tungsten for defense procurement will take effect. Almonty has proactively secured binding offtake agreements, including long-term commitments to supply tungsten oxide for U.S. defense applications. The company has articulated an ambitious long-term target: to supply a minimum of 40% of the non-China tungsten market.
Operational Progress Across the Portfolio
The first truckload of ore was extracted and transported from the Sangdong site in December 2025, officially initiating operational mining. The project is now in its final stage before reaching planned full commercial production. Sangdong is projected to become one of the largest and longest-life tungsten mines outside China. The focus for 2026 is ramping up Phase 1 to full capacity, with a Phase II expansion targeted for 2027.
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Concurrently, Almonty is advancing its other key assets:
* At the Panasqueira mine in Portugal, an extensive drilling program is underway to extend the operation’s mine life.
* The recently acquired Gentung Browns Lake project in Montana, USA, is slated to be production-ready by the second half of 2026.
Financial Foundation for Growth
To fund its expansion, Almonty significantly strengthened its capital base in 2025. The company completed a U.S. initial public offering and listed on the Nasdaq exchange. Through two enlarged equity placements, it raised gross proceeds of approximately $219.4 million.
These funds are earmarked to finance the continued build-out of Sangdong, exploration at Panasqueira, and development preparations for the Gentung Browns Lake project. The coming period will be decisive, testing whether the production ramp-up proceeds as scheduled and if Almonty can fulfill its existing offtake agreements within the current market dynamics.
Key Takeaways:
- Production Commences: Active ore extraction began at the Sangdong tungsten mine in December 2025.
- Market Context: Tungsten prices increased by 160% in 2025, driven by Chinese export limits and an impending U.S. ban on Chinese tungsten for defense use starting in 2027.
- Strategic Goal: Almonty aims to become a primary tungsten source for the U.S. and its allies, targeting 40% of the non-China supply.
- 2026 Roadmap: Full commercial ramp-up at Sangdong, expansion work at Panasqueira, and production preparation at Gentung Browns Lake.
- Capital Raise: Approximately $219.4 million in new capital was secured in 2025 via two equity offerings and the Nasdaq listing.
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