Sangdong Mine to sustain AKTC’s global tungsten supply

The Sangdong Mine, run by Almonty Korea Tungsten Corp. (AKTC), goes through expansion in Yeongwol, Gangwon Province, in this undated photo. Courtesy of AKTC

The Sangdong Mine in Gangwon Province, currently under expansion for reopening before the end of this year after its shutdown in 1994, will produce the largest volume of tungsten among Almonty Industries’ global reserves, according to the company’s Korean subsidiary, Almonty Korea Tungsten Corp. (AKTC).

Almonty Industries in 2015 wholly acquired Canada-based Woulfe Mining, which had failed to reopen the Sangdong Mine in Yeongwol County. The company then set up AKTC to take charge of the key future reserve.

AKTC said that once the expansion is complete, the mine will dominate Almonty Industries’ overall mineral output. The company currently runs production at Panasqueira Mine in Portugal and owns tungsten mines in Los Santos, Spain.

AKTC estimates that the Sangdong Mine, first discovered in 1916, will provide enough minerals to remain productive for more than 90 years. The company said past drilling indicates the mine contains the world’s largest tungsten deposits.

The company added that the minerals there have a grade three times higher than both Chinese and global averages. It also boasts world-class recovery rates, with 85 percent of minerals extracted from ore and a concentrate composition of 65 percent. The mine’s quartile production cost of $110 per metric ton unit is roughly half that of Chinese state-owned enterprises, giving it a comparatively low global cost.

Following Almonty Industries’ acquisition of the mine, AKTC conducted seven drilling campaigns, which confirmed the mine’s potential. Subsequently, it produced an international resource report compliant with the standards of the Australian and Canadian governments. The drillings revealed that the mine, after playing a key role in Korea’s economic development following the 1950-53 Korean War, will remain feasible for another century.

In 2022, AKTC secured a $75.1 million project finance loan from the German state-run development bank KfW. By 2024, the company’s total cumulative investments reached $130 million. That year, AKTC began expanding the mine, including construction of a processing plant with a tungsten oxide production facility planned nearby.

The company aims to become a key tungsten supplier for domestic semiconductor and secondary battery manufacturers, enabling a stable supply chain in Korea.