Almonty Industries has expanded its long-term tungsten supply agreement with Global Tungsten & Powders, a member of Austria’s Plansee Group, as processing begins at the Sangdong mine in South Korea. The companies have extended the concentrate agreement from 15 years to 21 years. The revised arrangement applies to Phase I production from Sangdong, where processing operations commenced on 1 July. Under the amended terms, contracted volumes rise by 40 per cent, increasing from 3.15 million to 4.41 million metric tonne units (MTU). Following the ramp-up period, minimum annual deliveries will be 210,000 MTU. Pricing has also been improved, with the revised terms increasing prices across contracted volumes by approximately 6.3 per cent.
Sangdong output covered by long-term offtake
Global Tungsten & Powders is expected to take approximately 90 per cent of Sangdong’s Phase I tungsten concentrate production. The Pennsylvania-based company supplies tungsten powders to customers in the US defence and industrial sectors. The agreement gives the South Korean operation long-term commercial coverage as tungsten supply chains face changes associated with Chinese export restrictions and new US procurement requirements.
Almonty estimates that the revised pricing will generate at least US$30 million in additional annual revenue at current ammonium paratungstate (APT) prices. The company values the expanded agreement at approximately US$490 million based on current pricing and has separately estimated around US$630 million of incremental revenue over the amended contract period. The two headline figures are based on different calculation approaches. Actual revenue will depend on the pace of production ramp-up, tonnes delivered, prevailing tungsten prices, concentrate specifications and the contract’s pricing formula.
Phase II remains outside the agreement
The revised contract provides commercial coverage for a substantial portion of Phase I output, but it does not include Phase II of Sangdong. The second phase could approximately double the mine’s processing capacity. Almonty’s other tungsten assets are also outside the amended agreement. These include the Panasqueira mine in Portugal and the company’s tungsten development interests in the United States. Those operations and Sangdong’s future expansion therefore retain exposure to separate financing and offtake arrangements.
Financing shifts focus to commissioning
Sangdong has already secured a US$75.1 million senior project-finance facility associated with KfW IPEX-Bank and Austrian export-credit support. Almonty also entered 2026 with substantial liquidity following capital raisings on Nasdaq.
With Phase I processing now under way and financing in place, the immediate operating focus is on commissioning and ramp-up. Recovery performance, concentrate quality and the ability to maintain consistent deliveries will determine how effectively the mine converts its contracted production into revenue. The long-duration agreement provides significant commercial coverage for Sangdong’s initial phase, while also concentrating customer exposure. With approximately 90 per cent of Phase I output committed to a single buyer, the performance of the mine, the agreed pricing mechanism and the physical delivery schedule will remain central to the contract’s value.
