By Mo Shine
China currently controls approximately 88% of the world’s tungsten supply. That is not a statistic; it is a chokehold.
For three decades, the West has been content to let this dominance persist, enjoying the low costs of subsidized production while our own domestic and allied capacities withered. But those chickens are coming home to roost. As geopolitical tensions rise and the U.S. defense sector prepares for a mandatory 2027 deadline to decouple from Chinese tungsten sourcing, the "dormant" assets of the past are suddenly the most valuable real estate on the planet.
Enter Almonty Industries (NASDAQ: ALM).
On March 16, 2026, the company officially announced the Phase 1 commissioning of the Sangdong tungsten mine in South Korea. After 30 years of silence, one of the world’s most significant tungsten deposits is back online. This isn't just a mine restart. It is a fundamental rewiring of the global critical minerals supply chain.
The Strategic Calculus: Why Tungsten Matters
Tungsten is often the "forgotten" critical mineral, overshadowed by the hype of the lithium-ion battery race or the copper supply gap. But try building a modern military: or a precision manufacturing sector: without it.
Tungsten has the highest melting point of all elements and a density comparable to gold. In the defense sector, it is indispensable for kinetic energy penetrators (armor-piercing rounds), missiles, and heavy-duty alloys. In the industrial sector, it’s the backbone of cutting tools and wear-resistant parts.
The problem is that you can’t just "innovate" your way out of a tungsten shortage. You need geology. And you need it in a jurisdiction that won't weaponize export controls.
https://skillings.net/gallium-germanium-12-months-after-export-controls-where-is-the-supply
South Korea’s Sangdong mine was once the heart of the global tungsten market before it was shuttered in the early 1990s due to a flood of cheap Chinese supply. Now, with the tide of globalization receding, Sangdong is reclaiming its throne.
The Numbers: A 45-Year Lifeline
Let’s look at the brutal numbers behind this restart. Almonty has invested over $100 million since acquiring the site in 2015 to modernize what was essentially a time capsule.
The Phase 1 commissioning means the processing plant is now handling approximately 640,000 tonnes of ore annually. This is expected to yield roughly 2,300 tonnes of tungsten concentrate per year. That’s a start, but the real impact comes with Phase 2.
Expected to come online in 2027: conveniently aligning with U.S. defense procurement shifts: Phase 2 will double capacity to 1.2 million tonnes of ore annually, producing roughly 4,600 tonnes of concentrate.
At full tilt, Sangdong is projected to supply roughly 40% of the global tungsten demand outside of China.
Forty percent. That’s not a rounding error. That’s a total shift in the balance of power.
Grade is King
In mining, grade is the only thing that ultimately matters. You can have the best equipment in the world, but if you’re chasing "dirt," the economics will eventually crush you.
Sangdong features an average ore grade of approximately 0.51% tungsten trioxide (WO₃). To put that in perspective, that is roughly three times the global average. High grades mean lower processing costs per unit, higher margins, and a much more resilient operation when commodity prices fluctuate.
And then there is the longevity. Sangdong has an expected mine life exceeding 45 years. We aren't talking about a quick-flip asset. This is a multi-generational project that will likely outlive the current geopolitical cycle.
Automation and the Industry Trend: The Epiroc Factor
The restart of Sangdong isn't happening in a vacuum. It is part of a broader trend toward high-tech, high-efficiency mining designed to offset rising labor costs and safety risks.
While Almonty focuses on South Korea, we are seeing massive moves in mining automation elsewhere. Take Epiroc’s recent SEK 380 million order for a fleet of autonomous drills and underground equipment for a project in Africa.
This is the new standard. Whether it’s Almonty utilizing advanced Metso processing equipment and modern monitoring systems at Sangdong, or majors deploying autonomous fleets in the Copperbelt, the goal is the same: eliminate the human margin of error.
Automation isn't just a "nice to have" anymore; it’s a prerequisite for the kind of precision required to extract critical minerals in a high-inflation environment. At Sangdong, the modernization includes four kilometers of new underground tunnel development, all mapped and monitored with 2026-grade technology.
The Defense Deadline: 2027
The timing of Almonty’s ramp-up is surgically precise. The U.S. government has made it clear that after 2027, defense contractors can no longer rely on Chinese tungsten.
This creates a massive "demand pull" for any producer that can prove an ethical, transparent, and non-Chinese origin of supply. Almonty is essentially the only game in town capable of meeting that scale on an accelerated timeline.
The strategic importance here isn't subtle. Without Sangdong, the Western defense industrial base is effectively beholden to its primary geopolitical rival for the very materials needed to maintain a credible deterrent.
Execution Risks: What Could Go Wrong?
While the commissioning news is a major win, the mining industry is never without its "nasty" surprises. We’ve seen other critical mineral projects stumble at the finish line due to commissioning bottlenecks or unexpected metallurgical issues.
- Phase 2 Execution: Doubling capacity from 640k to 1.2M tonnes is a massive engineering undertaking. Any delays in the 2027 timeline would leave a gaping hole in the ex-China supply chain.
- Price Volatility: While Almonty has high grades to buffer against price drops, the tungsten market remains relatively opaque. If China decides to dump supply to crash prices and kill competition (a playbook they’ve used before), Almonty will need every bit of its 0.51% grade to stay in the black.
- Geopolitical Proximity: South Korea is a stable democracy and a key U.S. ally, but it sits in a complicated neighborhood. Regional stability is a constant, if dormant, risk factor.
The Bottom Line: The Supply Chain is Being Rewired
The restart of the Sangdong mine after 30 years is the clearest sign yet that the era of "just-in-time" supply chains from the lowest-cost producer is over. We have entered the era of "just-in-case" and "friend-shoring."
Almonty Industries has positioned itself as the lynchpin of the Western tungsten market. By bringing Phase 1 online in March 2026, they have validated the site’s potential. By targeting 40% of the non-Chinese supply by 2027, they are challenging a decade-long monopoly.
As we move toward the 2027 defense mandate, expect Sangdong to be the focal point of every procurement conversation in Washington and Brussels.
There simply isn’t enough tungsten to go around. Those who control the mines with the 45-year lifespans and triple-average grades are the ones who will dictate the terms of the next decade.
For more deep-dive analysis on the critical minerals sector and the projects reshaping the industry, stay tuned to Skillings Mining Review.
https://skillings.net/the-structural-pivot-coppers-13000-reset-and-the-ai-infrastructure-race
Social Media Snippet (LinkedIn/X):
Almonty Industries (NASDAQ: ALM) has officially commissioned Phase 1 of the Sangdong Tungsten Mine in South Korea. After a 30-year hiatus, this project is set to supply 40% of the world's tungsten outside China. With a 45-year mine life and grades 3x the global average, this isn't just a restart; it's a strategic shift for global defense and manufacturing. #MiningNews #Tungsten #CriticalMinerals #AlmontyIndustries #DefenseSupplyChain
