Almonty Industries has entered into an amendment to its long-term offtake agreement with U.S.-based Global Tungsten & Powders (GTP), a member of Austria’s Plansee Group, covering tungsten concentrate produced from Phase I of the company’s Sangdong mine in South Korea.
The amendment extends the term of the agreement by six years, increases total contracted volumes by 40% to 4.41 million metric tonne units, and improves the pricing payable to Almonty on all contracted volumes by approximately 6.3%, growing expected annual contract revenue at current pricing by at least US$30 million per annum.
“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,” Lewis Black, chairman, president and chief executive officer of Almonty, stated.
“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.”
The agreement covers approximately 90% of Phase I tungsten concentrate production from the Sangdong mine. The amendment follows the commencement of processing plant throughput operations at Sangdong, announced on July 1, as the mine ramps toward full Phase I capacity.
Almonty said the agreement relates solely to Phase I production at Sangdong. As a result, the amended deal is expected to represent only a portion of Almonty’s total production and revenue potential over time.
GTP, headquartered in Towanda, Pa., is one of the largest Western producers of tungsten powders and a key supplier into U.S. defense and industrial supply chains.
Source: Almonty