Almonty Industries has expanded its tungsten concentrate offtake agreement with Global Tungsten & Powders, extending the commercial coverage of the Sangdong mine in South Korea while increasing contracted volumes and pricing. The revised agreement extends the delivery period from 15 to 21 years from first delivery, taking contracted supply into the late 2040s. Total committed volume rises by 40 per cent, from 3.15 million to 4.41 million metric tonne units, with minimum annual deliveries of 210,000 metric tonne units once the Phase 1 ramp-up is complete.
Pricing across the contracted volumes will increase by approximately 6.3 per cent. Almonty estimates that the amendment will add at least US$30 million to annual contract revenue and raise the total value of contracted revenue over the agreement period to approximately US$490 million.
Sangdong enters Phase 1 production
The agreement covers approximately 90 per cent of planned Phase 1 concentrate production at Sangdong, providing substantial contracted sales coverage as the South Korean tungsten operation moves into production. The processing plant began throughput on 1 July 2026, with Almonty now progressing the mine toward full Phase 1 capacity. The amended offtake therefore provides a long-term sales framework during the operating ramp-up.
For the project’s financing and operating profile, the higher contracted volume reduces exposure to initial marketing requirements, while the improved pricing increases the potential revenue generated from Phase 1 concentrate. The extended contract also provides a longer period of contracted revenue against which future financing requirements can be assessed.
Contract value depends on production and delivery
The US$490 million figure represents the estimated revenue over the amended agreement rather than an unconditional cash receipt. The complete pricing formula, take-or-pay provisions, customer-credit arrangements, termination rights and remedies relating to production shortfalls have not been disclosed. Actual revenue will also depend on Sangdong consistently meeting the required concentrate specifications, recovery levels and delivery conditions throughout the contract period.
The agreement covers Phase 1 only and does not include the proposed Phase 2 expansion, which is expected to double annual processing capacity. Production from the expansion therefore remains available for separate marketing arrangements.
Phase 2 remains outside the amended agreement
Excluding Phase 2 leaves Almonty with additional commercial flexibility for future output. The company can separately arrange offtake for the incremental concentrate produced by the expanded operation. The amended agreement consequently combines long-term coverage for most initial Sangdong production with uncontracted capacity associated with the proposed expansion. The immediate operational requirement is for Sangdong to establish consistent production of saleable tungsten concentrate while progressing through the Phase 1 ramp-up.
