Canada-based Almonty Industries (ASX:AII) has signed a memorandum of understanding (MoU) with the Yeongwol County Office to secure the location of its Sangdong downstream tungsten oxide plant in South Korea.
Under the MoU between Yeongwol and Almonty subsidiary Almonty Korea Tungsten Corporation (AKTC), AKTC are proposing to establish a factory of about 60,000m2 within the Yeongwol County opportunity development special zone to produce refined and smelted tungsten, and tungsten alloys.
Yeongwol announced it will provide full legal and institutional support to Almonty.
During this process, AKTC intends to invest about US$72 million ($106.51 million) in the construction of the downstream tungsten oxide plant, and an additional approximately US$29 million in processing plant facility upgrades required to increase tungsten concentrate production at the Sangdong Tungsten Mine.
Almonty, which has a market capitalisation of $157.98 million, says the signing of the MoU reaffirms the agreement between both parties to foster “high-value-added” industries in the region and build critical raw materials industrial infrastructure.
AKTC Vice President Yoo Woo-jong says based on the mine’s redevelopment project, the company 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.
“This large-scale investment will not only revitalise 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,” he says.
Almonty Industries is a tungsten mining, processing, and shipping company focused on its assets in Spain, Portugal, and South Korea.
Write to Aaliyah Rogan at Mining.com.au
Images: Almonty Industries
