Almonty Locks In 21-Year Offtake as Sangdong Enters Commercial Production
Published on 09/23/2026 at 09:50 | Editorial boerse-global.de
Western manufacturers hunting for tungsten outside dominant supply nations have found a fresh answer in South Korea. Almonty Industries has moved its Sangdong mine from construction into commercial operation, a transition that shifts the company from project developer to active producer of tungsten concentrate.
Korean Plant Clears Its Final Regulatory Hurdle
Roughly a week ago, the processing facility at Sangdong secured its final operating certification, authorizing commercial output of tungsten concentrate. The same regulatory green light also covered the mine's crushing units, clearing the way for regular sales. With those inspections complete, Phase I of the Sangdong project is now fully commercial-ready — the planned handover from build-out to routine marketing.
A 21-Year Contract Underpins the Ramp-Up
Long-term purchase commitments stand behind that production start. More than a month ago, Almonty extended its existing offtake arrangement with Global Tungsten & Powders, part of the Plansee Group, stretching the agreement to a 21-year term running from the first delivery. The total contract volume comes to 4,410,000 MTU of tungsten concentrate, with a minimum annual take of 210,000 MTU once the ramp-up phase concludes. All told, more than 90 percent of Sangdong's Phase I output is now contractually committed.
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Spain Adds a Second European Revenue Stream
Europe provides an additional outlet. About a week ago, the company signed a long-term take-or-pay agreement with Wolfram Bergbau und Hütten AG, a Sandvik subsidiary, covering the processing of tailings from the Los Santos mine in Spain. The contract spans a minimum volume of roughly 1,720 tonnes of contained WO? and carries a conditional advance payment of USD 3 million to Almonty. By reprocessing these mining residues, the company unlocks tungsten volumes directly at the Spanish site.
Rwanda Deal Widens the Map to Africa
Beyond its established mining locations, Almonty is broadening its geographic reach. More than a month ago, it struck a binding partnership with the Rwandan government. Under the terms, the state receives a 25 percent stake in Almonty Rwanda Pty Ltd, while Almonty retains 75 percent. In return, the company gained the Shyorongi tungsten exploration concession along with a mineral processing license. According to Reuters, the partnership aims to develop Rwanda's tungsten resources jointly.
Jefferies Sees Room to Run
Analysts at Jefferies endorsed the stock with a buy rating and a price target of USD 26.25, pointing to Almonty's strategic role in Western tungsten supply chains. The shares last changed hands at EUR 12.53, up 58 percent since the start of the year. That leaves a gap of 39 percent to the 52-week high of EUR 20.61. With production now underway and offtake agreements stretching decades into the future, the company has laid the groundwork for its next stage of development.
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