Almonty Industries has announced an agreement to supply Sandvik with tungsten sourced from the tailings of its Los Santos mine in Spain. This deal comes at a time when Western nations are actively seeking alternatives to Chinese tungsten supplies, which dominate the global market, accounting for approximately 80% of production. The agreement, structured on a take-or-pay basis, aims to provide a more immediate tungsten supply solution compared to traditional mining methods, allowing for quicker delivery of concentrate.
The tungsten will be processed from waste material left at the Los Santos site, where Almonty plans to utilise specially developed technology to extract the metal. Although the tailings contain lower grades of tungsten than newly mined ore, the rising prices and increasing demand for tungsten in various applications—from military to semiconductor industries—have made the reprocessing of these materials economically viable.
Spain is noted for having the largest tungsten reserves in Western Europe, yet the development of new mines has been hampered by regulatory challenges. Almonty has faced similar issues at its Valtreixal project, where it has been waiting for necessary permits since acquiring the mining licence in 2013. A recent non-binding negative environmental assessment from a regional government has further delayed progress.
The company’s flagship asset, the Sangdong mine in South Korea, has recently resumed production after being inactive for over three decades, while tungsten is also produced at Almonty’s Panasqueira mine in Portugal. The strategic push for tungsten supply is part of a broader European initiative to secure critical minerals, especially in light of geopolitical tensions that have highlighted the risks associated with reliance on concentrated overseas supply chains.
In response to these challenges, the European Union adopted the Critical Raw Materials Act in 2024, aimed at boosting extraction, processing, and recycling within Europe. Tungsten was included in the EU’s critical-minerals joint-purchasing plans earlier this year, alongside other essential materials such as rare earths and gallium. The Los Santos project is expected to play a crucial role in meeting the growing demand from European consumers like Sandvik, as they seek more reliable and diverse sources of tungsten.
