Almonty Industries has entered the production phase at its Sangdong tungsten project in South Korea after beginning ore processing operations in June 2026. The company started feeding stockpiled run-of-mine material through the newly commissioned processing plant, marking the transition from a long development period into the early stages of saleable tungsten concentrate production.
Located in Gangwon Province, South Korea, Sangdong is Almonty’s flagship asset and is positioned as one of the most significant non-China tungsten projects moving toward production. The company is listed on Nasdaq, TSX, ASX and Frankfurt, providing exposure to North American, Australian and European capital markets as tungsten gains increasing attention within defence, electronics and industrial supply chains.
Stockpiled Ore Supports Initial Processing Operations
Almonty reported that Sangdong held approximately 120,000 tonnes of stockpiled ore at the end of the first quarter of 2026, with an average grade of 0.24% WO₃. During the second quarter, the company added another 19,700 tonnes of development ore grading 0.35% WO₃ while completing 214.6 metres of underground development, primarily along the Main Vein. Following these additions, the project had approximately 139,700 tonnes of stockpiled ore available for the ramp-up period, with a blended grade of around 0.25% WO₃.
Almonty is initially processing lower-grade material as part of the commissioning strategy. The approach is intended to stabilise the processing circuit, evaluate blending practices and confirm plant performance before introducing higher-grade feed. The company estimates that the existing stockpile represents approximately 2.6 months of Phase I processing throughput and has an illustrative gross in-process value of about US$68 million based on prevailing tungsten prices.
Tungsten Market Tightening Supports Project Timing
Sangdong’s move into processing comes as tungsten prices have risen sharply during 2026. The market has been affected by tighter Chinese export controls, restricted supply availability and increased demand from defence-related sectors.
Reported tungsten pricing reached record levels in 2026, with ammonium paratungstate prices in Rotterdam exceeding US$3,000 per metric tonne, according to Reuters reporting in April. The increase represented a rise of more than 200% since the beginning of the year, while China restricted future tungsten exports to selected licensed companies for 2026–2027.
The current market environment has increased the strategic importance of new tungsten supply outside China. Tungsten is used in aerospace, defence equipment, armour, munitions, electronics and high-temperature industrial applications. The United States currently has no active commercial tungsten mines, according to Reuters reporting, leaving Western supply chains exposed to concentrated production sources outside allied markets.
Critical Minerals Policies Increase Focus on Alternative Supply
The Sangdong project aligns with broader critical-minerals strategies in Europe and other Western markets. The European Commission identifies tungsten as a critical raw material because of its economic importance and supply-risk exposure. European policy initiatives have highlighted the importance of securing access to critical raw materials for industrial competitiveness, clean technologies, digital infrastructure and defence-related industries.
Almonty is seeking to develop more than a mining operation by advancing a broader tungsten supply chain strategy. The company has outlined plans for a downstream tungsten oxide plant and long-term offtake arrangements aimed at creating a non-China tungsten value chain. This approach reflects the growing focus on processing capability, intermediate products, customer qualification and long-term supply agreements rather than mining assets alone.
Financing Strengthens Development Platform
Almonty’s financial position has expanded alongside the Sangdong ramp-up. In June, the company completed an oversubscribed US$700 million convertible senior notes offering, including the full exercise of a US$100 million over-allotment option. The financing generated approximately US$772.7 million in net proceeds after costs, providing additional capital capacity as the company transitions from project development into operational activities. The stronger balance sheet comes as Sangdong moves from being a development-stage asset toward an operating tungsten project with potential exposure to higher-value supply chains.
Ramp-Up Performance Remains the Key Operational Test
Despite the start of processing, Sangdong remains in the optimisation phase. The next stage of development will depend on plant stability, metallurgical recoveries, concentrate quality, underground development progress and the ability to achieve sustained commercial production. The current use of stockpiled lower-grade material indicates that Almonty is still progressing through commissioning rather than operating at full steady-state output. Future performance will depend on consistent concentrate production, customer acceptance and reliable shipment volumes.
The transition into saleable tungsten concentrate production comes as consumers in defence, aerospace, semiconductors, electronics and advanced manufacturing reassess supply-chain risks. China’s export restrictions have increased the importance of supply availability alongside commodity pricing. Sangdong’s move from development into processing represents a test of whether non-China critical-minerals projects can deliver physical supply during a period of heightened tungsten market pressure. The coming operating periods will determine whether Almonty can convert favourable market conditions, expanded financing capacity and its existing ore inventory into stable commercial production.
