Almonty Confirms Sangdong Mine Phase I Start, Eyes 1.2Mtpa Expansion

Updated JORC Report Validates Sangdong’s Progress

Almonty Industries Inc. has published an updated JORC-compliant technical report for its flagship Sangdong Tungsten Mine in South Korea, effective as of February 28, 2025. The report confirms no material changes from the previous 2020 technical disclosure, reinforcing the mine’s robust resource and reserve base and providing a comprehensive overview of development, processing, environmental, and economic parameters.

Phase I Production Set for Late 2025

The report details that Phase I of the mine and processing plant construction is on track to begin production in the second half of 2025. The initial ore throughput capacity is targeted at approximately 640,000 tonnes per annum, supported by a mining plan that leverages mechanized underground mining methods tailored to the deposit’s geometry. The mine’s probable mineral reserves stand at 8.58 million tonnes grading 0.42% tungsten trioxide (WO3), sufficient to sustain operations for about 14 years at this throughput.

Phase II Expansion Fully Permitted and Ready

Looking ahead, Almonty plans a Phase II expansion to increase throughput capacity to around 1.2 million tonnes per annum. This expansion is fully permitted under existing approvals and could be advanced as early as 2026, subject to positive operating results from Phase I and prevailing market conditions. The Phase II development would unlock economies of scale and enhance margins, with first ore production under this phase anticipated by 2027.

Comprehensive Technical and Economic Analysis

The updated report, authored by independent mining consultant Adam Wheeler, includes detailed geological, metallurgical, and mining method studies. The processing plant design incorporates crushing, grinding, and flotation circuits optimized for scheelite concentration, with metallurgical testwork supporting an 85% tungsten recovery and a concentrate grade of approximately 65% WO3.

Economic analysis projects a steady-state production of 640,000 tonnes per annum with a 14-year mine life, delivering an after-tax net present value (NPV) of US$271 million at a 5% discount rate and an internal rate of return (IRR) of 49.5%. Sensitivity analyses underscore the project’s resilience to commodity price fluctuations and operating cost variations.

Environmental and Social Commitments

Almonty has completed extensive environmental baseline studies and secured all necessary permits for construction and operation. The company emphasizes sustainable practices, including paste backfill to minimize surface tailings, water treatment facilities, and ongoing community engagement. Local support remains strong, with initiatives aimed at fostering regional development and employment.

Strategic Offtake and Market Position

Almonty has secured a 15-year offtake agreement with Global Tungsten & Powders Corp., providing pricing stability through a floor price mechanism while allowing participation in market upside. This agreement underpins the project’s commercial viability and aligns with Almonty’s strategy to establish Sangdong as a leading non-Chinese tungsten producer.