Almonty Industries, Global Tungsten expand offtake agreement 

Almonty Industries (NASDAQ: ALM) (TSX: AII) announced Tuesday it has extended its long-term offtake agreement with Global Tungsten & Powders LLC (GTP), covering tungsten concentrate produced from its Sangdong mine in South Korea by six years, increasing total contracted volumes by 40%. 

The term has been extended from 15 to 21 years from the date of first delivery, extending contracted deliveries into the late 2040. 

Pennsylvania – headquartered GTP is one of the largest Western producers of tungsten powders and a key supplier into U.S. defense and industrial supply chains.  

With tungsten prices at historic highs following successive export restrictions imposed by China, the Amendment secures an expanded, U.S.-delivered supply of conflict-free tungsten concentrate for more than two decades, the company said.  

Total contracted quantity increased from 3,150,000 to 4,410,000 metric tonne units of tungsten concentrate, with minimum contracted volumes of 210,000 MTU per year following ramp-up, Almonty said, adding that improved pricing increases anticipated revenue on each MTU delivered for the entirety of the agreement by 6.3%. 

The Agreement covers approximately 90% of Phase I tungsten concentrate production from Sangdong and relates solely to Phase I production.  

  “GTP and the Plansee Group have stood behind the Sangdong mine since 2018, and this Amendment reflects both the strength of that partnership and what the Sangdong mine’s conflict-free tungsten is worth in today’s market,” Almonty CEO Lewis Black said in a news release. 

“Extending the term to 21 years reflects the longevity of this project, increasing contracted volumes by 40% and increasing expected annual revenue by approximately 6.3% gives Almonty a depth of contracted revenue visibility that no producers in our industry can match,” Lewis said.