Almonty Secures European Tungsten Supply Deal with Sandvik

The deal secures a $3 million upfront payment for offtake rights, providing Almonty with the necessary capital to reactivate the western Spanish operation. By focusing on retreating existing tailings rather than primary extraction, the company aims to bring the property back online with a guaranteed route to market.

For Sandvik’s Wolfram Bergbau und Hutten unit, the pact bolsters a critical refining complex in St. Martin im Sulmtal, Austria. As the only integrated tungsten smelting plant operating outside of Asia and Russia, the facility is under pressure to source secure, transparent feedstock. This urgency is driven by tightening U.S. defense procurement rules, which next year will restrict tungsten originating from China, Russia, North Korea, and Iran throughout the entire supply chain.

Almonty President and Chief Executive Lewis Black noted that the index-linked pricing and floor-price protection, combined with Sandvik’s financial backing, allow the company to restart the EU asset with immediate commercial viability. The agreement ensures that from the first shipment, the material is destined for markets that increasingly prioritize domestic and allied-nation origin.