Almonty Industries (ASX: AII) has entered a binding offtake agreement with Tungsten Parts Wyoming (TPW), a US-based defense contractor, and Metal Tech, an Israeli processor. The agreement commits TPW to purchase a minimum of 40 metric tons of tungsten oxide monthly from Almonty. Almonty currently mines and processes tungsten concentrate from its Panasqueira mine in Portugal and is developing the Sangdong tungsten mine in South Korea. The tungsten oxide supplied will be exclusively used in US defense applications, including missile, drone, and ordnance systems. Metal Tech will convert the tungsten oxide into metal powder for TPW’s US defense production programs.
The agreement has an initial term of three years with automatic annual renewals. Deliveries will commence upon Almonty’s initial production of tungsten oxide in commercially saleable quantities, subject to a hard floor price. Almonty’s CEO, Lewis Black, highlighted the agreement’s significance in securing predictable revenue and long-term demand tied to US defense programs. Black also noted that the agreement reinforces Almonty’s position as a key upstream supplier to the defense supply chain of the US and its allies.
