Almonty secures longer term, higher volume and improved pricing with offtake amendment
Global tungsten producer Almonty Industries has entered into an amended offtake agreement with its long-term customer Global Tungsten & Powders, covering tungsten concentrate produced from Phase 1 of Almonty's Sangdong mine, in South Korea.
The amendment extends the term of the agreement by six years, increases total contracted volumes by 40% and improves the pricing payable to Almonty on all contracted volumes by about 6.3%.
The term was extended from 15 to 21 years from the date of first delivery, which extends contracted deliveries into the late 2040s. In turn, the total contracted quantity increased from 3.15-million tonne units to 4.41-million tonne units of tungsten concentrate, with minimum contracted volumes of 210 000 tonne units a year following the Phase 1 ramp-up.
Notably, the improving pricing agreed between the companies increases Almonty's expected yearly contract revenue by at least $30-million, while the total revenue for the duration of the contract increases to $490-million.
The amended offtake agreement covers about 90% of the Phase 1 tungsten concentrate production planned at Sangdong. Almonty started processing plant throughput operations at Sangdong on July 1, with ramp-up now progressing to reach the full Phase 1 capacity.
Notably, the offtake agreement relates solely to Phase 1 production at Sangdong and does not cover the company's planned Phase 2 expansion, which is anticipated to double the mine's yearly processing capacity.
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