Almonty signs tungsten deal with Sandvik unit
- Almonty Industries (NASDAQ:ALM) signed a long-term tungsten concentrate supply agreement with Wolfram Bergbau und Hütten AG.
- The agreement covers tungsten recovery from tailings at Almonty’s Los Santos Mine in Spain and includes a potential $3 million upfront payment.
- The deal provides a supply route for European-origin tungsten ahead of the planned mine restart.
Almonty Industries (NASDAQ:ALM) entered into a long-term tungsten concentrate supply agreement with Wolfram Bergbau und Hütten AG (WBH), a subsidiary of the Sandvik Group, covering tungsten recovery from existing tailings at the Los Santos Mine in western Spain.
The agreement is structured on a take-or-pay basis and includes a conditional upfront payment of US$3 million for offtake rights, with supply expected to begin following the planned restart of production at the Los Santos Mine.
The agreement allows Almonty to supply tungsten concentrate from tailings retreatment while supporting the reinstatement of the processing plant, with WBH receiving a European Union-origin tungsten feed source for its refining operations.
Almonty produces tungsten concentrate and operates mining assets focused on supplying tungsten outside China, while Los Santos is an open-pit scheelite skarn operation located about 50 kilometres south of Salamanca, Spain.
The company said the Los Santos Mine has been under planned care and maintenance since February 2020, and the agreement supports its plan to restart production using tailings retreatment technology.
