Almonty confirms molybdenum reserves in Gangwon Province

Almonty Korea Tungsten Corp. (AKTC) employees drill for molybdenum ore inside the Sangdong mine in Yeongwol County, Gangwon Province, May 27. Courtesy of AKTC

Almonty Korea Tungsten Corp. (AKTC) is on a fast track to producing molybdenum — an important earth mineral — in Gangwon Province at a scale the company says could be sustained for more than 60 years.

AKTC said on Thursday it has confirmed the volume and quality of a molybdenum reserve at the Sangdong mine in Yeongwol County that it now operates. The discovery, according to the company, was “similar to what we had seen through a past sampling process.”

The latest update comes as AKTC has accomplished 37 percent of drilling inside the mine for the estimation of scale and quality of molybdenum ores. The company has so far drilled 26 locations and the bored tunnels now altogether extend to 12 kilometers in length.

AKTC said it will begin producing the mineral as soon as the estimation process is complete. The company added that it plans to accelerate its molybdenum production schedule beyond earlier timelines.

“The early results from this campaign are highly encouraging. With approximately 37 percent of the program complete, the grades we are encountering are consistent with our historical data, reinforcing our confidence in the scale and quality of the molybdenum resource at Sangdong," AKTC Chairman and CEO Lewis Black said.

“We are advancing this work with urgency, as Korea confronts a critical shortage of molybdenum, and we believe the Sangdong Molybdenum Project can become a stable, allied source of supply for a metal that is vital to defense, energy and advanced manufacturing.”

Molybdenum, alongside tungsten, which AKTC began producing at the mine in March, is considered an important mineral for key national businesses in Korea across aerospace, defense, nuclear power, petrochemical, semiconductor and renewable energy industries.

Korea has so far been relying on China for more than 80 percent of its tungsten imports and more than 90 percent of molybdenum imports. The Sangdong mine, once it starts producing molybdenum, will make the country less dependent on China by diversifying supply chains for the two strategic minerals.

AKTC last year signed a memorandum of understanding with SeAH M&S, the world’s largest molybdenum oxide smelter, according to the company. Under the deal, AKTC agreed to supply entire molybdenum ores from the mine to SeAH M&S.

“Molybdenum is a natural extension of infrastructures and expertise we have already established at Sangdong mine for tungsten,” Black said.

“Advancing both metals together allows us to build long-term value for shareholders while supporting national resource security, strengthening Yeongwol’s regional economy and reducing Korea’s dependence on imports. Once the full extent of the ore body is confirmed, we intend to move into production without delay.”