Following in the footsteps of MP Materials: Why Almonty Industries is a potential global market leader

Money well invested – Processing plant generates margins

For decades, Chinese tungsten mines depressed prices. Beijing subsidized the mining and refining of this metal with its unique properties, and the rest of the world's mines closed. During this time, Lewis Black, CEO of Almonty Industries and a long-time expert on the tungsten market, decided that the world needed an alternative to China and gradually secured promising projects. It has only been in the last few months that the public has realized how important this strategy was. At a time when tungsten is indispensable for defense and high-tech applications, China, Russia, and North Korea dominate the market, and there is hardly any tungsten in the West. Almonty Industries will change that in 2025: In addition to high-purity tungsten from the Panasqueira mine in Portugal, Almonty will bring its huge Sangdong project in South Korea into production. When fully developed, this mine alone could account for more than 40% of tungsten supply outside China from 2027.

This prospect has made Almonty Industries a stock market high-flyer in recent months. But the Company has much more to offer. According to various sources, Almonty is aiming to list on the US Nasdaq stock exchange soon. The reason for this is not only greater visibility but also improved financing conditions. With the Kreditanstalt für Wiederaufbau (KfW) and other strong partners, Almonty has already proven that it can win over major institutional partners. Additional investors are now expected to help finance the new processing plant in South Korea, among other things.

Unique knowledge transfer: Will Almonty become a tungsten incubator?

The "Sangdong Downstream Extension Project" is expected to have a capacity of 4,000 tons of tungsten per year starting in 2027 and will produce ammonium paratungstate (APT) and nano-crystalline tungsten oxide. As Almonty Industries has been successfully mining and processing tungsten under free market conditions for many years and has the relevant expertise in addition to high-grade deposits, this refinement offers positive margin effects.

The fact that specialized knowledge is crucial when it comes to tungsten is also demonstrated by the example of Almonty's Los Santos mine in Spain, which has been temporarily closed since 2020 but could be reopened. Almonty intends to use the flotation technology developed for its Sangdong tungsten mine in South Korea to reprocess existing residues from processing. Exploration drilling also indicates additional underground potential beneath the existing mine. New processes and experience gained in the development of Sangdong could unlock similar potential at the Valtreixal project, located approximately 250 km from the Los Santos mine. This form of technology transfer demonstrates Almonty's ability to leverage its knowledge across its global portfolio. In addition to Lewis Black's detailed market knowledge, Almonty also benefits from its workforce. At the Panasqueira mine in Portugal, some workers are already in their fifth generation and know the deposit and raw material inside out. Almonty also operates what it claims to be the first most modern tungsten laboratory in the world in Portugal. This knowledge is unique – Almonty can roll it out again and again in new projects.

Pentagon deal sends MP Materials skyrocketing – Will Almonty follow suit?

In addition to its unique expertise in tungsten and the potential for production start-up at its two Spanish tungsten projects, which is further highlighted by the European Critical Raw Materials Act (CRMA), Almonty Industries could also benefit from the US government's comprehensive commitment to securing strategic raw materials. Just last Thursday, rare earths company MP Materials announced a partnership with the US Department of Defense that includes long-term purchase agreements and billions in investments. MP Materials' share price subsequently jumped by another 50% from an already high level. The Company is currently valued at around USD 7.4 billion, while Almonty is hovering around the USD 1 billion mark.

Given that Almonty Industries has already established partnerships with the US defense industry, has a former US general on its board, and has long-term supply contracts with no price caps that highlight its strategic importance, investors should look beyond the short-term volatility and focus on the long-term prospects of the stock. As the only tungsten producer that can significantly expand its offering in secure legal jurisdictions in the coming years and also has a well-coordinated team and unique expertise, the Company should be the first port of call when it comes to further strategic partnerships in the US. At the beginning of June, the US Congress highlighted Almonty's strategic importance for the US in a letter. Business in Europe could also receive a significant boost from the new realities.