American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
Almonty Industries Inc. (NASDAQ: ALM) announced the first ore shipment from its Sangdong tungsten mine in South Korea, marking the final step before full commercial production. The mine is one of the world’s largest and highest-grade tungsten deposits, with proven reserves of approximately 7.9 million tonnes. Its restart is viewed as a crucial step in reducing Western, particularly U.S., reliance on China for this critical mineral.
The news drove Almonty’s share price up 9%, giving the company a market capitalization of around $2.79 billion.
China currently supplies over 80% of the world’s tungsten, while U.S. domestic production has been zero since 2015. As tungsten is classified as a critical strategic mineral, demand has surged, especially for defense applications like armor-piercing penetrators. Prices recently hit a 12-year high, intensifying Western focus on supply chain security.
Almonty, the largest tungsten producer outside China, plans to direct Sangdong’s output primarily to the U.S. market. The company’s CEO stated that at full capacity, the mine could supply nearly 40% of the world’s non-Chinese tungsten. To strengthen ties with the Western defense sector, Almonty is redomiciling to the U.S. and has joined the Critical Minerals Forum, a policy group supported by the U.S. Defense Advanced Research Projects Agency (DARPA).
The Sangdong processing plant is scheduled for commissioning in July. The operation will establish a new supply chain linking Korean mining and smelting with high-end manufacturing in the United States. This move aims to provide a reliable, non-Chinese anchor for tungsten supply in high-tech and defense sectors for the U.S. and its allies, signaling a pivotal shift in the global tungsten supply landscape.
