Almonty Industries: Capitalizing on Record Tungsten Prices with Strategic Mine Launch

A pivotal strategic development has been achieved by Almonty Industries. The company has commenced full-scale production at its Sangdong tungsten mine in South Korea, marking a significant operational milestone in March 2026. This restart coincides with a period of exceptionally favorable market dynamics, where soaring prices for the critical metal are being driven by intensifying global geopolitical friction.

Geopolitical Tensions Fuel Supply Crunch and Demand

Fundamental global shifts are responsible for tungsten's elevated valuation. Classified as a critical mineral in the United States, Canada, and the European Union, tungsten is essential for manufacturing armor-piercing ammunition, military aircraft, and advanced electronics. Data from Project Blue indicates military demand alone is projected to rise by 12 percent in 2026.

Compounding this demand is a tightening global supply, significantly pressured by Chinese export restrictions. This confluence of factors positions non-Chinese producers like Almonty as strategically vital suppliers to Western markets. The market has recognized this fundamental shift, with the company's shares appreciating by over 512 percent year-over-year, closing at 20.67 Canadian dollars on Friday.

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Unprecedented Profit Margins Emerge

The conditions for the mine's restart are exceptionally robust. The European reference price for Ammonium Paratungstate (APT) climbed to approximately 2,250 US dollars per metric ton unit (MTU) by the end of March. This represents a staggering 557 percent increase since February 2025. Management's original mine plan was based on a base price assumption of just 300 US dollars, highlighting the dramatic shift.

With current production costs reported at 135 US dollars per MTU—and expected to fall to 127 US dollars within two years through operational optimizations—the potential profit margin is substantial. This strong economic foundation is further supported by internal evaluations indicating higher tungsten grades and greater total tonnage in the deposit than previous estimates had suggested.

Operational Focus Shifts to Scaling Output

Now that full production has begun, Almonty's immediate priority is rapidly scaling output at the Sangdong site. The company must increase production volumes to meet the concrete delivery requirements of the defense and high-tech industries within the current year. Western industrial policy, which increasingly emphasizes domestic and allied production of critical minerals, provides a stable offtake environment for this expansion.

The official reopening of the Sangdong mine represents more than an operational achievement; it is a timely strategic move that places Almonty Industries at the center of a critical supply chain during a period of record commodity pricing and heightened strategic competition.

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