Almonty Secures $3M Deal with Sandvik Subsidiary for Tungsten Tailings Recycling
Event summary
- Almonty signed a long-term tungsten concentrate supply agreement with WBH, a Sandvik subsidiary, for recycling tailings at its Los Santos Mine in Spain.
- The deal includes a $3M upfront payment and is structured on a take-or-pay basis.
- The agreement covers retreatment of existing tailings stockpile, expediting tungsten supply without new primary extraction.
- Los Santos Mine has been in care and maintenance since February 2020.
- WBH operates the only integrated tungsten smelting plant outside Asia and Russia.
The big picture
This agreement positions Almonty as a key player in the Western tungsten supply chain, particularly as geopolitical tensions drive demand for non-Chinese sources. The deal comes ahead of US defense procurement rule changes in 2027, which will restrict Chinese-origin tungsten. WBH's integrated smelting capacity in Austria provides a critical link in the supply chain for Western hard-metal and powder-metallurgy industries.
What we're watching
- Supply Chain Diversification
- How Almonty's non-Chinese tungsten supply will impact Western defense and industrial sectors.
- Technology Scalability
- Whether Almonty can successfully apply tailings retreatment technology to other European sites.
- Regulatory Compliance
- The pace at which US defense procurement rules will drive demand for documented non-Chinese tungsten sources.
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