USA Mining News Staff

July 2, 2026 – In a significant development for the global critical minerals sector, Almonty Industries (NASDAQ: ALM) (TSX, ASX: AII) announced today the commencement of processing plant throughput operations at its Sangdong tungsten mine in South Korea. This pivotal milestone signals the transition of Sangdong from an extensive development project into an active, revenue-generating mining operation, poised to re-establish a crucial Western supply chain for one of the most strategically important metals on Earth.

Almonty Begins Commercial Processing at Sangdong

Almonty Industries confirmed on July 2, 2026, that it began feeding stockpiled run-of-mine (ROM) ore through its newly commissioned processing plant in June, initiating the production of saleable tungsten concentrate. This marks the culmination of years of intensive development and investment at the Sangdong site, located in South Korea's Gangwon province. The company’s announcement underscores the successful commissioning of its modern processing facility, meticulously designed to upgrade ROM ore into a high-purity tungsten concentrate, a product essential for a myriad of industrial and technological applications.

The commencement of processing operations is a transformative step for Almonty. After years focused on construction, infrastructure development, and underground mining advancements, the company is now poised to enter a phase of active production and revenue generation. This achievement is particularly noteworthy given the complexities of re-developing a historic mine of Sangdong’s scale and the stringent requirements for establishing a modern, efficient processing circuit capable of handling tungsten ores.

A Historical Tungsten Powerhouse Reborn

The Sangdong mine carries a rich legacy, having been one of the world’s largest tungsten producers for decades before operations were suspended in the early 1990s. This closure was primarily a consequence of a prolonged downturn in global commodity prices, which rendered many Western tungsten mines uneconomical. The mine’s historical significance highlights its proven resource base and established operational footprint, factors that attracted Almonty Industries in 2015.

Since acquiring the project, Almonty has undertaken a multi-year, multi-million-dollar redevelopment program. With an investment exceeding $100 million, the Montana-based company has meticulously transformed the legacy site into a state-of-the-art underground mining operation. This comprehensive redevelopment included not only extensive underground rehabilitation and expansion but also the construction of an entirely new, modern processing plant designed to leverage contemporary metallurgical techniques for optimal tungsten recovery and product purity. The redevelopment effort underscores a strategic long-term vision to reactivate a critical supply source for a commodity that has seen its supply chain increasingly concentrated in specific geopolitical regions.

Strategic Ore Stockpiling and Grade Management

In preparation for the processing plant’s commissioning, Almonty pursued an intentional strategy of ore stockpiling, ensuring a consistent and substantial feed for the initial ramp-up phase. By the end of the first quarter of 2026, the company had accumulated approximately 120,000 tonnes of ore, graded at an average of 0.24% tungsten trioxide (WO₃). This foundational stockpile provided the initial inventory required to begin throughput operations.

During the second quarter of 2026, Almonty further augmented its ore reserves, having mined an additional approximately 19,700 tonnes of development ore. This newly extracted material presented a higher average grade of 0.35% WO₃, reflecting the ongoing progress in underground development. Concurrently, the mining team achieved 214.6 meters of underground development, primarily focusing on the mine’s critical Main Vein, which is known for its high-grade resources. As a result, the total stockpiled ore ahead of the plant’s commissioning reached approximately 139,700 tonnes, with a blended average grade of approximately 0.25% WO₃.

Almonty has articulated a deliberate strategy for managing ore feed during the initial operational phase. The company is strategically using lower-grade throughput during this ramp-up period to optimize ore blending and ensure the consistent feed quality that the newly commissioned plant requires. This approach allows for the fine-tuning of processing parameters and equipment before transitioning to higher-grade material. Notably, even Sangdong’s lower-grade ore demonstrates significant metallurgical advantage, being approximately three times higher in tungsten content than the ore processed at Almonty’s Panasqueira mine in Portugal, highlighting the inherent quality of the Sangdong deposit. The processing plant's core function is to systematically upgrade this ROM ore into a high-purity tungsten concentrate, a critical step towards producing a marketable product for industrial consumers.

Tungsten's Critical Role and Favorable Market Dynamics

The commencement of operations at Sangdong comes at a particularly opportune moment, coinciding with a robust and "highly beneficial tungsten pricing environment." Global tungsten prices have reportedly reached record highs, driven by a confluence of factors including export curbs from major producing nations, most notably China, and increasing industrial and military demand worldwide. This surge in price underscores tungsten’s designation as a "strategically critical metal." Its unique properties – unmatched hardness, high melting point, and excellent tensile strength – make it indispensable in industries ranging from aerospace and defense to electronics, automotive, and resource extraction (e.g., in drilling tools and wear-resistant components).

Lewis Black, CEO of Almonty Industries, articulated the magnitude of this achievement, stating in a news release, "Our Sangdong processing plant is now up and running, with throughput finally underway in what is a highly beneficial tungsten pricing environment. This is the moment our team has worked toward for years; the transition from building and commissioning a mine to actually processing ore into saleable tungsten concentrate. After decades in which the West allowed its tungsten supply chain to atrophy, the Sangdong mine is once again producing one of the most strategically critical metals on earth."

The economic implications of this development are substantial for Almonty. At prevailing tungsten prices, the contained tungsten within the current stockpile of approximately 139,700 tonnes represents approximately 2.6 months of Phase I throughput feed. This initial inventory holds an illustrative gross in-process value of approximately $68 million, providing a strong financial impetus for the early stages of production and validating the significant capital investment made in the project. This tangible value underscores the immediate revenue potential that the Sangdong mine brings to Almonty's portfolio.

Long-Term Vision and Global Supply Impact

Beyond its immediate operational gains, the Sangdong mine is positioned to be a long-term, foundational asset for the global tungsten market. The project boasts an expected mine life exceeding 45 years, providing stability and security of supply for decades to come. This extended operational horizon is supported by a substantial resource base characterized by an impressive average ore grade of approximately 0.51% WO₃ – a grade roughly three times the current global average. This high-grade nature of the deposit contributes significantly to the project's economic viability and its competitive position in the global market.

At its full operational capacity, Almonty has publicly stated that the Sangdong mine is expected to supply around 40% of the global tungsten demand outside China. This figure highlights the profound geopolitical and economic significance of the project. In the context of increasing geopolitical tensions, supply chain diversification, and the critical minerals strategies being pursued by Western nations, Sangdong represents a vital step towards re-establishing a secure and independent supply of tungsten. It lessens reliance on potentially volatile supply sources and supports industries ranging from advanced manufacturing to national defense, which are increasingly reliant on robust access to critical raw materials.

Conclusion: Reshaping the Global Tungsten Landscape

The commencement of processing operations at Almonty Industries' Sangdong tungsten mine is more than just an operational milestone; it is a strategic triumph for critical minerals supply outside of China. By successfully re-activating a historically significant mine with substantial resources and a modern processing infrastructure, Almonty is not only transitioning to a revenue-generating phase but also playing a crucial role in reshaping the global tungsten landscape. This development offers a robust and long-term supply solution for a metal essential to modern industry and national security, ensuring that the West's demand for this vital commodity can be met with greater autonomy and reliability for decades to come.