Almonty fires South Korean tungsten mine back up amid sky high pricing

Within the past year, tungsten has risen by more than 550%

Rowan Dunne

Published

4 hours ago

Almonty Industries Inc (TSE: AII) (NASDAQ: ALM) (FRA: ALI0) has restarted the Sangdong tungsten mine in South Korea after completing Phase 1 commissioning. The return follows a 30-year hiatus.

On Mar. 16, the company announced bringing the historic operation back online. Almonty will soon be processing approximately 640,000 tonnes of ore per year at the modernized underground mine and producing around 2,300 tonnes of high-grade tungsten concentrate.

Executives invested more than US$100 million to upgrade the facility and plant. They timed this revival strategically to deliver the metal to Western markets as China continues to dominate over 80 per cent of global supply with tight export controls.

This development also comes as the U.S. Department of Defense prepares to ban adversarial sources for military use beginning in 2027. China, Russia and North Korea, specifically.

Tungsten prices fly on global tensions and elevated demand

Geopolitical turmoil and surging requirements from defence and technology sectors have driven tungsten prices dramatically higher. China’s export restrictions on tungsten products since late 2024 have slashed shipments by about 40 per cent and helped trigger a 557 per cent price rally to more than US$2,250 per metric ton.

Militaries worldwide currently seek to increase stockpiles of the metal for armour-piercing projectiles, tank armour, hypersonic weapons and other applications. Semiconductor manufacturers are also boosting their purchases of tungsten hexafluoride gas needed for advanced AI chip production.

Aside from Almonty, several other companies now stand to benefit significantly from these elevated prices. Allied Critical Metals Inc (CVE: ACM) (OTCMKTS: ACMIF) (FRA: 0VJ0) is currently advancing tungsten projects in Portugal to secure reliable supply for European customers. In addition, American Tungsten Corp (CNSX: TUNG) (OTCMKTS: TUNGF) (FRA: RK90) has reactivated its historic IMA mine in Idaho to help build domestic U.S. production capacity.

Broader critical minerals push gains steam

The United States in particular is accelerating a broad push to secure supplies of critical minerals through strong policy support and substantial private investment.

Seoul-headquartered Korea Zinc Inc (KRX: 0101030) is investing billions into a new smelter in Tennessee that will process antimony and other strategic metals in close partnership with U.S. officials. This firm is also currently engaged in talks with American representatives about extracting rare earths from data centre waste.

Korea Zinc sent 20 tons of antimony ingots from its local South Korean smelter to Maryland in June. This shipment highlighted the need for alternative suppliers of strategic commodities within the U.S.

A determined effort to procure reliable sources outside of China and develop Western deposits of strategic minerals has sparked renewed activity and strong enthusiasm among junior mining companies across the sector.

NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is a company worthy of attention that is taking full advantage of the momentum by rapidly advancing drilling and development plans at its Limo Butte project in Nevada. The junior miner is targeting near-term production of antimony and oxide gold resources.