Almonty secures supply deal with Sandvik to boost tungsten output
Summary
US miner Almonty has announced a new long-term supply deal with Swedish mining equipment manufacturer Sandvik AB to utilize mine tailings from its Los Santos mine in Spain, in a bid to become the leading Western tungsten producer by 2027. This agreement follows Almonty's recent supply contract with Rwanda, the largest tungsten producer in Africa, reflecting the urgent demand for tungsten amid the US's efforts to replenish munitions stockpiles depleted by recent conflicts. The conventional timeline for mine development often risks failing to meet this immediate demand, prompting Almonty to pursue faster supply solutions to secure tungsten sources outside of China's dominant production, which controls 80% of global tungsten supplies.
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$ALMTY
Analysis
Sandvik AB: Sandvik AB is a Swedish manufacturer of mining equipment and related industrial tools. Its subsidiary Wolfram Bergbau und Hütten AG handles tungsten refining and powder production in Europe. The company is partnering with Almonty to secure new feedstock from Spanish mine tailings for its Austrian operations. Almonty Industries: Almonty Industries is a mining company focused on tungsten production and development across multiple sites. It is advancing supply agreements and tailings recovery projects to position itself as a leading Western producer of the metal. These efforts directly support faster delivery of conflict-free tungsten to meet US defense and industrial demand through recent deals including one with Sandvik's unit. Wolfram Bergbau und Hütten AG: Wolfram Bergbau und Hütten AG is a tungsten refining and powder manufacturing unit of Sandvik AB based in Austria. It is entering a supply agreement for concentrate recovered from Almonty's Los Santos mine tailings in Spain. This adds a new European source of non-Chinese tungsten feedstock for its processing facilities. Defense Priorities: The US is accelerating efforts to replenish munitions stockpiles depleted by recent conflicts, increasing demand for critical materials like tungsten. Resource Nationalism: Global shifts toward resource nationalism are prompting diversified sourcing strategies for industrial metals essential to defense, AI, and reindustrialization goals. Supply Chain Security: Western governments and companies are prioritizing faster alternatives to traditional mine development to secure reliable sources of tungsten outside dominant producers.
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