Full Breakdown
Sangdong Mine Reopens as a U.S. Strategic Tungsten Source
7/2/2026, 9:10:04 AM
Background & Context
Tungsten, the metal with the highest melting point and a hardness near that of diamond, is essential for semiconductors, construction equipment, oil-drilling tools, and military munitions. China supplies roughly 85 percent of global tungsten and in 2025 imposed strict export controls that drove prices up and created shortages for defense contractors. Historically, the Sangdong deposit in South Korea accounted for 70 percent of the country’s economic output before Chinese concentrates forced its closure in the 1990s.
Core Development
Almonty Industries, a Montana-based firm, revived the Sangdong mine in 2024. The underground galleries extend more than 3.2 km and contain an estimated 58 million tonnes of tungsten ore. CEO Lewis Black projects a 45-year** extraction period, with the potential to satisfy roughly 40 percent of global tungsten demand outside China. Almonty’s 2023 IPO raised US $770 million to fund the operation.
Data & Statistics
- China’s share of global tungsten production: ? 85 % (source 1 & 2).
- Sangdong ore reserves: ? 58 million tonnes (source 3).
- Projected contribution: ? 40 % of non-Chinese demand (source 3).
- Almonty’s IPO proceeds: US $770 million (source 2).
- Chinese scrap-tungsten offers: ? 30 % above market price (source 3).
Official Statements & Responses
- In late 2025 the White House assisted a U.S. company in securing a mining agreement in Kazakhstan to diversify supply.
- The U.S. Department of Defense is preparing a 2027 ban that will prohibit defense contractors from using Chinese-origin tungsten and is actively seeking alternative suppliers for stockpiling.
- During the early 1950s the U.S. government signed an agreement with South Korea permitting American management of the Sangdong mine; a U.S. geologist delivered a survey report to Secretary of State Dean Acheson and General Douglas MacArthur.
Criticism & Opposition
Independent analyst Chris Berry argues that China seeks to dominate the entire tungsten supply chain, not merely raw material extraction. New Jersey scrap-metal dealer Nick Stevens declined a Chinese buyer’s offer, citing the need to strengthen the U.S. supply chain, though some peers accepted higher prices. The continued entanglement of global tungsten flows underscores the difficulty of fully decoupling from Chinese sources.
On-the-Ground Reports
Miners at Sangdong use long-hole drilling, dynamite blasting, and dump-truck haulage to bring ore to the surface. Underground, ultraviolet lamps reveal glittering tungsten seams. The ore is crushed, milled, and chemically processed into a grey concentrate that is shipped to Almonty’s clients, including a Pennsylvania firm producing components for armor-piercing munitions. The nearby village, once vibrant, now shows boarded-up storefronts and abandoned homes, prompting local pleas to keep the mine operating.
Why It Matters / Impact
Securing a domestic source of tungsten reduces U.S. reliance on a material that is critical for defense systems and high-technology manufacturing. By potentially supplying 40 % of non-Chinese demand, Sangdong could mitigate price volatility, support strategic stockpiles, and reinforce supply-chain resilience for sectors ranging from semiconductor fabrication to military hardware.
Conflicting Reports & Gaps
The 40 % supply estimate originates from Almonty’s internal projection; independent verification is absent. No official U.S. figure quantifies the expected volume of tungsten to be stockpiled before the 2027 ban, and production timelines for the mine’s full output remain unspecified.
Verbatim Quotes
- “What China is trying to do is not just dominate one piece of the supply chain,” — Chris Berry, independent metals analyst
- “Whatever you have, I’ll take it.” — Representative of Chinese buyers (quoted by Nick Stevens)
- “That is the absurdity of the situation,” — Lewis Black, CEO, Almonty Industries
- “I don’t want to see this town die” — Villager in Sangdong (reported by Ha Jae-young)
- “You can’t race to the finish line in a democracy; you’ve got to walk.” — Lewis Black, CEO, Almonty Industries
What’s Next
The Defense Department’s 2027 ban will take effect unless alternative supplies are secured. Almonty plans to continue expanding extraction capacity over the next 45 years, while U.S. agencies monitor Chinese scrap-tungsten markets and assess additional overseas mining partnerships to further diversify the supply chain.
