Almonty Industries' Sangdong Project Resumes Tungsten Mining in South Korea
Almonty Industries' Sangdong project in South Korea has resumed tungsten mining for the first time since 1993, and commercial production began roughly two weeks ago. This milestone was accompanied by final inspection certificates for the processing and crushing circuits, authorizing both commercial operation and the sale of tungsten concentrate.
According to Stifel, which initiated coverage with a Buy rating and a $25.00 price target, the resumption of mining is a key catalyst that can draw fresh buying interest. In contrast, Goldman Sachs had previously issued a Neutral rating with a $13.00 target, citing expectations that tungsten prices will normalize and the Sangdong ramp-up may trail market expectations.
Regardless of the pace of the ramp-up, Almonty has already secured long-term demand for its output. Over 90% of Phase I production is locked into contracts running 21 years from first delivery, with a minimum contractual volume of 210,000 MTU per year once the operation has reached full capacity.
The company is also expanding its supply base beyond Korea, including a multi-year take-or-pay arrangement with Wolfram Bergbau und Hütten AG for reprocessing of tailings at the Los Santos mine. This deal guarantees a minimum volume of roughly 1,720 tonnes of contained tungsten trioxide and includes a conditional one-time advance payment of $3.0 million.