South Korea's Sangdong Mine to Bolster US Critical Tungsten Supply for Defense

Historic Sangdong Mine Reopens to Address Global Demand

The Sangdong mine in Yeongwol County, Gangwon Province, South Korea, once a cornerstone of the nation's post-war economy, is poised to resume commercial production, significantly impacting the global supply of tungsten. After closing in the early 1990s due to an influx of cheaper Chinese tungsten, the mine has been redeveloped by Canadian company Almonty Industries, which acquired the mining rights in 2015. The mine has successfully delivered its first truckload of ore, marking the transition to active mining operations, with commercial production anticipated in 2025 or early 2026.

The Sangdong mine holds an estimated 7.9 million tonnes of proven and probable reserves, boasting some of the world's highest grades of tungsten. Almonty Industries projects the mine can operate for '100-plus years' and could meet over 10% of global tungsten demand for at least 45 years. Once fully operational, it is expected to produce 1.2 million tons of tungsten ore annually, potentially supplying nearly 40% of the world's non-Chinese tungsten.

Tungsten: A Critical Mineral for US Defense

Tungsten is classified as a critical mineral by the US Department of Defense (DoD) due to its indispensable role in various defense and high-tech applications. Its exceptional hardness, high melting point of 3,422°C, and density make it vital for:

• Weapons and Munitions: Armor-piercing ammunition, bunker-busting bombs, and missile systems.
• Aerospace: Components for fighter jets and other aircraft.
• Advanced Technology: Semiconductors and AI hardware.

The United States has not had domestic tungsten production since 2015, making it heavily reliant on imports. China currently dominates the global tungsten market, supplying over 80% of the world's production. This dominance has prompted global efforts, particularly from the US and its allies, to diversify critical mineral supply chains.

Strategic Partnership to Secure Supply Chain

The reopening of the Sangdong mine is a strategic move to reduce Western dependence on Chinese tungsten. Almonty Industries' CEO, Lewis Black, has affirmed the mine's capability to reliably supply tungsten primarily to the United States for national security needs. South Korea has indicated plans to supply 45% of its domestic tungsten production to the US through long-term contracts starting in 2025.

Further solidifying this partnership, Almonty Industries has signed a binding offtake agreement with US-based defense contractor Tungsten Parts Wyoming (TPW) and Israeli processor Metal Tech. This agreement ensures the supply of tungsten oxide exclusively for US defense applications, including missile, drone, and ordnance systems. The US government has also implemented policies, effective January 2027, to restrict the acquisition of certain metals, including tungsten, from countries like China, Russia, and North Korea, underscoring the urgency of securing alternative sources.

Future Outlook for Critical Mineral Independence

The redevelopment of the Sangdong mine represents a significant step towards establishing a resilient and diversified supply chain for critical minerals. This initiative aligns with broader US strategies to bolster its defense industrial base and reduce vulnerabilities associated with reliance on single-source suppliers. The collaboration between South Korea and the United States through projects like Sangdong is crucial for enhancing national security and supporting advanced technological industries.