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Canadian-based Almonty Industries Inc (ASX:AII) has announced that the location of its planned Sangdong Downstream Tungsten Oxide Plant in South Korea has been secured, as subsidiary Almonty Korea Tungsten Corporation (or AKTC) has signed a Memorandum of Understanding (MOU) with a local government agency in the country.
AKTC signed the MOU with Yeongwol County Office to confirm the establishment of the plant there, with the county being located approximately 30 kilometres from the Sangdong Tungsten mine.
The decision is hoped to turn Yeongwol into a hub for high-tech industries leveraging off local mineral resources.
As part of the agreement, the subsidiary will set up a 60,000-square metre factory to produce refined and smelted tungsten and tungsten alloys, located within the Yeongwol County Opportunity Development Special Zone.
AKTC will also spend around 100 billion won (or US$72 million) to construct the downstream tungsten oxide plant, and add an additional 40 billion won (US$29M) for upgrades needed to increase production of tungsten concentrate at the Sangdong Tungsten Mine.
This means that Yeongwol-gun will be boosted by regional economic development and job creation to become an outpost of Korea’s core industrial belt.
Vice president of AKTC Yoo Woo-jong, said the project would place South Korea in a strong position as producer and refiner of critical minerals.
“Based on the successful Sangdong Mine redevelopment project, we will quickly complete
the ecosystem of the tungsten industry so that Yeongwol-gun can lead the construction of a
critical mineral industrial complex in Gangwon-do,” he said.
“This large-scale investment will not only revitalize the local economy, but will also contribute importantly to the establishment of a national resource security system by securing a stable supply chain of needed strategic minerals essential for Korea’s high-tech industries.”
Sangdong is said to be the largest tungsten mine in the world, and is expected to have a 30-year mine life.
Almonty has been trading at 66.5 cents.
