Canada-based Almonty Industries has received its final drawdown of $906,000 (C$1.35m) from the $75.1m KfW IPEX-Bank project loan facility for the construction of the Sangdong Tungsten Mine in South Korea.
This development highlights the ongoing collaboration between Almonty and KfW, supporting Almonty’s strategic vision of becoming a leading global producer of tungsten with the construction of the Sangdong Tungsten Project.
The Sangdong deposit is located in the south-eastern Korean Peninsula, approximately 170km east-south-east of the capital city of Seoul.
Proven and probable reserves at Sangdong tungsten mine are estimated at 7.89 million tonnes (mt). The mine is reported to have some of the world’s highest grades of tungsten.
Historically, the Almonty Korea Tungsten mine was a key contributor to South Korea’s economy in the decades following the Korean War, supplying more than 50% of the country’s export revenue as one of the largest global tungsten producers.
However, the mine, along with nearly all other metallic mines in South Korea, ceased operations in the 1990s due to low commodity prices.
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By GlobalData
The revival of the Sangdong mine began with Almonty Industries’ acquisition of the mining rights in 2015.
The company set up a subsidiary, Almonty Korea Tungsten Corporation, to oversee the mining operation and revitalise the dormant site.
KfW has consistently supported every drawdown and utilisation request made by Almonty for the project.
Furthermore, the partnership has been vital in establishing a transparent and dependable source of tungsten and contributing to the stability of global supply chains and long-term success.
Almonty Industries CEO Lewis Black said: “We are delighted to have reached this important milestone with the full backing of our banking partner KfW IPEX-Bank. Their steadfast support throughout the process has been invaluable, and we are grateful to have had such a strong and reliable project finance partner.
“Their loan has been crucial to the construction of the Sangdong Project in South Korea, a cornerstone of our strategic initiatives. We are fully committed to ensuring the proper and timely repayment of this facility, further demonstrating our financial responsibility and dedication to our stakeholders.”
This initiative has been positively received by local residents, who hope that the mine’s reopening will rejuvenate a community facing regional decline.