Wedoany.com Report-Dec.17, Almonty Industries has confirmed the delivery of the initial truckload of ore at its Sangdong tungsten mine in South Korea, signifying the start of mining activities and the last preparatory phase prior to full commercial output.

Sangdong tungsten mine in South Korea.

Processing systems for crushing, grinding, and flotation are advancing according to schedule, facilitating a gradual increase to maximum capacity.

Situated in Gangwon province in the northeast, the deposit contains one of the world's substantial tungsten reserves with elevated grades. Proven reserves stand at 7.9 million tonnes grading 0.47% tungsten oxide, equating to 3.7 million metric ton units.

Historically, Sangdong played a key role in South Korea's economy during the decades following the Korean War, accounting for over half of national export earnings. Operations ceased in the 1990s mainly because of subdued market prices.

Almonty acquired the property following the halt of tungsten extraction in the United States in 2015 and has dedicated a decade to its reactivation.

The company views the resumption as an important development in enhancing South Korea's involvement in the international tungsten sector.

Tungsten has been classified as a critical mineral by the U.S. government since 2018, utilized in various applications including defense, with global supply predominantly sourced from established producers.

"This first ore placement represents a strategic inflection point in advancing Almonty's mission to strengthen the global tungsten supply chain," CEO Lewis Black said in a news release.

"Sangdong plays a critical role in efforts by the United States, the European Union, and Korea to diversify away from the China-dominated market, which currently supplies more than 80% of the world's tungsten," Black said.

"The resumption of production at the Sangdong Mine forms the foundation for securing reliable, non-China tungsten supply to key sectors such as defense, semiconductors, AI hardware, aerospace, and other high-technology industries."

Black added that the Sangdong mine establishes a basis for a new tungsten supply network for the U.S. and its partners, while restoring South Korea's traditional position as a significant contributor.

Following the announcement, Almonty's shares rose 9% on the Nasdaq by the close of trading, with the company holding a market capitalization of $2.79 billion.

This progress at Sangdong aligns with broader industry efforts to expand access to essential minerals through reactivated assets, supporting diverse applications in advanced manufacturing and technology.

By leveraging high-grade resources, the mine contributes to meeting ongoing demand in global markets without altering established supply patterns.

The decade-long redevelopment process involved comprehensive planning to ensure operational readiness, incorporating modern extraction and processing techniques.

Historical export contributions from Sangdong underscore its past economic significance, now poised for renewed activity in a contemporary context.

Almonty's multi-exchange listing on Nasdaq, TSX, and ASX facilitates broader investor participation in the project's growth.

As commercial production approaches, the mine's output will integrate into international supply chains, aiding sectors reliant on tungsten for specialized components.

The site's location in Gangwon provides logistical advantages for regional distribution, enhancing efficiency in material handling.

Overall, the ore delivery milestone reflects coordinated efforts to advance mineral production capabilities, fostering sustainable development in resource sectors.