Almonty Locks in Lifelong Molybdenum Supply Deal with SeAH Group

Strategic Partnership Secures Molybdenum Supply

Almonty Industries has taken a decisive step in cementing its position in the critical materials sector by signing an exclusive offtake agreement with SeAH M&S, a dominant player in South Korea’s metals processing industry. This deal guarantees that SeAH will purchase 100% of the molybdenum produced from Almonty’s Sangdong Molybdenum Project for the entire life of the mine, providing a stable and predictable revenue stream for the company.

The Sangdong project, already fully permitted for mining and environmental compliance, is poised to become a cornerstone of Almonty’s growth strategy. The agreement includes a hard floor price of US$19.00 per pound of molybdenum, a prudent financial safeguard given the current market price hovering around US$22 per pound. This pricing mechanism offers Almonty a buffer against price volatility, enhancing project financing prospects and operational planning.

Implications for South Korea’s Supply Chain and Industry

South Korea’s heavy reliance on imported molybdenum, primarily from China, has long posed supply chain risks for its robust metals and shipbuilding sectors. By partnering with SeAH, Almonty not only secures a reliable buyer but also contributes to strengthening South Korea’s domestic supply chain resilience. This is particularly timely as SeAH is investing US$110 million in a new metals and fabrication facility in Texas, intended to serve high-profile clients like SpaceX and the U.S. aerospace and defense sectors.

The synergy between the Sangdong Molybdenum Project and Almonty’s adjacent Sangdong Tungsten Project, located just 150 metres apart, promises operational efficiencies. Shared infrastructure and expertise could reduce costs and streamline logistics, further enhancing the competitiveness of Almonty’s offerings in global markets.

A Vote of Confidence from Almonty’s Leadership

Lewis Black, Almonty’s CEO, emphasized the strategic significance of this partnership, highlighting the confidence it reflects in Almonty’s ability to deliver high-quality resources. He noted that the floor price arrangement not only stabilizes revenue but also facilitates access to low-rate domestic construction financing, critical for advancing the molybdenum project.

Black also framed the deal as a natural extension of Almonty’s success with the Sangdong Tungsten Project, positioning the company as a leader in supplying critical materials essential for defense, green energy, and advanced manufacturing sectors.

Looking Ahead

This offtake agreement marks a pivotal milestone for Almonty, aligning with broader market trends that emphasize supply security for strategic metals. As global demand for molybdenum intensifies, driven by its applications in aerospace, defense, and clean energy technologies, Almonty’s Sangdong project is well positioned to capitalize on these dynamics.

Investors and industry watchers will be keen to monitor how this partnership influences Almonty’s project development timeline, cost structure, and market positioning in the coming months.