Almonty to supply Sandvik tungsten from Spanish mine tailings
The long-term deal turns waste from a shuttered operation into a new European source of the strategic metal.
Almonty Industries (ALM) has entered into a long-term agreement to supply tungsten to Swedish mining equipment manufacturer Sandvik from tailings left at its Los Santos mine in Spain. This tungsten will be supplied to Sandvik's Wolfram Bergbau und Hütten AG unit under a take-or-pay arrangement. The deal aims to provide an expedited supply solution, allowing Sandvik to receive concentrate in a shorter timeframe compared to the development of a traditional mine.
As European nations seek to reduce their reliance on China, which controls about 80% of global tungsten production, tungsten supply from alternative sources has gained importance. Spain is home to Europe's largest tungsten reserves, but Almonty has faced challenges in restarting its Valtreixal project due to permitting hurdles. The Los Santos project, however, requires the use of specially developed technology to process existing tailings, as the grades of tungsten in the waste are lower than those found in newly mined ore. Spain's regulatory environment has also slowed efforts to bring new mines into production.
Almonty is also the operator of the Sangdong tungsten mine in South Korea, which recently resumed production after a 30-year hiatus. The company is also involved in tungsten production at its Panasqueira mine in Portugal. The European Union's Critical Raw Materials Act, adopted in 2024, encourages more extraction, processing, and recycling of critical minerals within the bloc, including tungsten.
The Los Santos agreement is driven by the surge in tungsten prices following China's export controls and the increasing demand from European consumers for alternative suppliers.
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