Plansee and Almonty extend Sangdong tungsten supply agreement
The Plansee Group, headquartered in Reutte, Austria, has extended its long-term off-take agreement with Almonty Industries for tungsten concentrate from the Sangdong mine in South Korea by a further six years, taking the total term of the agreement to twenty-one years.
The agreement, announced ahead of schedule, is intended to strengthen long-term tungsten supply for Europe and the USA. The companies stated that it also reflects their ongoing collaboration to develop a supply chain outside China.
Tungsten is recognised as a critical raw material for a wide range of industrial applications, including cutting tools, high-technology products, energy systems, mobility and defence. As geopolitical uncertainty and supply chain pressures continue, manufacturers are increasingly seeking alternative sources of tungsten outside China.
Long-term supply security
“The extension of our purchase agreement with Almonty sends an important signal regarding the long-term security of the tungsten supply in Europe and the USA,” stated Karlheinz Wex, Chairman of the Executive Board of the Plansee Group. “With Sangdong, we will have another source of tungsten concentrates outside China. The agreement strengthens the resilience of our supply chains for many years to come and increases the agreed supply volume. Ultimately, this helps ensure the supply of tungsten products to our customers across the value chain.”
As part of the extension, the companies have also agreed revised pricing provisions to complement the existing minimum price mechanism. According to Plansee, this is intended to support the long-term economic viability of the Sangdong mine during periods of tungsten price volatility, while providing greater certainty for future investment and supply.
“A stable, independent and sustainable supply of raw materials requires long-term partnerships that endure even during volatile market phases,” Wex added. “The agreed pricing mechanism supports the mine’s long-term viability and helps secure the supply of tungsten well into the 2040s.”
The company also noted that tungsten prices have risen significantly since China introduced export restrictions on the material in February 2025.
Recycling remains essential
While mine developments such as Sangdong are expected to improve long-term supply security, Plansee noted that bringing new mining projects into production can take more than ten years.
“Mines alone are therefore not a short- or medium-term solution for the USA and Europe,” Wex stated. “To ensure timely supply security and, above all, to alleviate the tungsten shortage, we need supply chains that rely not only on long-term off-take agreements with mines but, above all, on regional recycling loops.”
According to Plansee, 92% of the tungsten it uses is sourced through recycling, while around 70% of tungsten used globally is not currently recycled.
The Plansee Group processes tungsten into raw materials, semi-finished products and finished components. Its Ceratizit business manufactures cemented carbide tooling for machining and industrial applications, while Plansee High Performance Materials (HPM) produces tungsten and refractory metal components for high-technology industries.
