Almonty, tungsten producer, and KfW IPEX-Bank, project lender, have cleared the last steps to start up the Sangdong mine in South Korea, with all plant equipment installed and financing fully drawn; initial production is targeted for the second half of 2025. The group said its Panasqueira mine in Portugal continues to provide steady output and operational learning as Sangdong moves into pre-production. Almonty ended the June quarter with about $25 million in cash and subsequently raised $90 million via a Nasdaq listing to support ramp-up.
Sangdong moves from build to pre-production
Chief executive Lewis Black said construction at Sangdong is “effectively complete” following the final drawdown under the loan facility from KfW’s International Project and Export Finance unit. The site has shifted into the final pre-production phase, with commissioning activities paving the way for first concentrate in H2 2025. The company reiterates that Sangdong, one of the largest and highest-grade tungsten projects outside China, is expected at full run-rate to supply more than 80% of global non-China tungsten production. Higher ore grades than at Panasqueira are expected to support stronger unit economics once operations stabilise.
Balance-sheet reinforcement and market access
Almonty reported cash of about $25 million at June 30, supported by warrant exercises and other equity inflows during the quarter. After period-end, the company listed on the Nasdaq Capital Market and raised $90 million in a public offering, strengthening liquidity for commissioning, ramp-up and ancillary growth plans. The stock continues to trade in Australia, Toronto and Frankfurt, widening the investor base and currency access without changing the project execution timeline.
Offtake and strategic relationships
The company said it was invited to a US Department of Defense-backed critical-minerals forum and signed an offtake agreement to supply tungsten oxide for the department. The board added Alan Estevez, former US Under Secretary of Commerce for Industry and Security, bringing policy and supply-chain expertise relevant to critical-minerals security and export-control regimes. These steps align with the push by North American and allied governments to diversify away from single-country supply for defense-adjacent materials.
Panasqueira remains the operating backbone
Panasqueira in Portugal continues to serve as Almonty’s operating base, supplying steady tungsten production while providing process and workforce experience that can be transferred to Sangdong’s ramp-up. Management highlighted that the comparative grade advantage at Sangdong should translate into lower cash costs per unit once normalised operations are established. With construction now complete in Korea, capital intensity is set to fall as spending shifts to commissioning and working capital.
Company Background and Market Context
Almonty is focused on tungsten mining and processing, with operations centered on Panasqueira (Portugal) and the flagship Sangdong (South Korea). The KfW IPEX-Bank facility underpins the Korean build-out, while recent equity financing via Nasdaq improves funding visibility into start-up. The company has also secured offtake traction with the US defense supply chain, which may aid marketing during early ramp-up. Continued listings in Australia, Toronto and Frankfurt provide liquidity across time zones and investor segments. The near-term corporate focus is commissioning, early-stage throughput reliability, and establishing product quality for contracted customers.
Tungsten is critical to hardmetals/carbides used in cutting tools, mining and oilfield equipment, and is valued for high melting point and strength. Global mine supply is concentrated in China, and policy or logistics frictions can influence availability and premia outside the mainland. Demand is closely tied to industrial production, autos and aerospace; defense procurement also supports offtake for tungsten oxides and powders. Against this backdrop, new non-China supply reaching steady-state tends to tighten delivered-material spreads and can improve buyer optionality.
