Almonty Industries has brought the Sangdong tungsten mine in South Korea back to life after a 30-year hiatus, a move that promises to reshape global supply dynamics for the critical metal. The company announced the completion of Phase 1 commissioning on March 16, with the mine now producing and poised to address a market where tungsten prices have soared 557% this year.
Located in Gangwon Province, Sangdong’s processing plant is designed to handle 640,000 tonnes of ore annually in its initial phase, yielding about 2,300 tonnes of tungsten concentrate per year. A Phase 2 expansion, slated for 2027, aims to double capacity to 1.2 million tonnes of ore and boost output to 4,600 tonnes annually. With an ore grade of 0.51% tungsten trioxide—three times the global average—and a mine life exceeding 45 years, Sangdong could eventually supply 40% of the world’s tungsten demand outside China.
Tungsten’s value has spiked on the back of surging defense spending and supply shortages, particularly for its use in high-density, armor-piercing projectiles known as penetrators. China currently dominates the market, producing 88% of global supply, while the United States halted domestic production in 2015 due to uncompetitive pricing.
Almonty’s $100 million investment since acquiring the project in 2015 has transformed Sangdong into a modern underground operation. The redevelopment features four kilometers of tunneling, a processing plant with SAG and ball mills from Metso, and advanced monitoring systems. CEO Lewis Black called the restart a decade-long effort to diversify critical mineral supply chains away from Chinese dominance.
Looking forward, Almonty plans to develop a tungsten oxide facility and explore the adjacent Sangdong Molybdenum deposit. This integrated vision, dubbed the ‘Korean Trinity,’ aims to position South Korea as a key hub for strategic mineral production and refining.
The timing aligns with heightened global demand, as tungsten’s role in defense contracts—especially with the U.S. Department of Defense—continues to grow. With Phase 1 output already underway, Almonty targets full commercial production in the near term, setting a benchmark for capacity with an initial 2,300 tonnes of concentrate expected this year.
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