Almonty Industries (NASDAQ: ALM) received approval from the South Korean government to commercially process tungsten concentrate at the Sangdong tungsten mine, expected to produce approximately 200,000 metric tonne units (MTU) per year. 

South Korean authorities issued mining facility inspection certificates on Sept. 17 authorizing Almonty to operate Sangdong’s crushing and processing facilities and sell tungsten concentrate domestically and overseas. The approval is the final regulatory step Almonty needed to secure before starting commercial production of the concentrate.  

The Sangdong mine was historically one of the world’s largest tungsten producers before operations were suspended in the early 1990s following a prolonged downturn in commodity prices. Since acquiring the project in 2015, Almonty has invested more than $100 million to redevelop the site as a modern underground mining operation with a newly constructed processing plant.

Almonty said it had been producing tungsten ore through the plant since mid-2026. The company will now turn that material into concentrate to be exported to South Korean and international markets that are facing China’s strict export controls.  

“Tungsten prices are at historic highs, China has tightened its grip on the material the Western industrial base depends on, and commencing January 2027, United States defense procurement rules will look all the way back to where the ore was mined, and Sangdong is one of very few assets that can answer that question with a Western address and the scale to matter,” Almonty CEO Lewis Black said in a news release. 

Tungsten is a vital metal for defense and high-tech electronics. More than 90% of Sangdong’s Phase I production is already contracted to Global Tungsten & Powers LLC, part of Austria’s Plansee Group.  

The 21-year offtake agreement has a total contracted volume of 4,410,000 MTU of tungsten concentrate, being at least 210,000 MTU produced per year. 

“The task in front of us is a simple one: operate the plant safely, ramp it steadily and deliver,” Black added. 

Almonty had already agreed to supply tungsten to Sandvik from the tailings at its Los Santos mine in Spain, another deal that aims to reduce reliance on China when it comes to the coveted metal. 

Shares in Almonty Industries were up 6.43% to $14.73 apiece by mid-day Monday in New York, valuing the company at $4.2 billion.