Almonty signs MOU for location of Sangdong Downstream Tungsten Oxide Plant
TORONTO, July 11, 2024--( BUSINESS WIRE)--Almonty Industries Inc. ("Almonty" or the "Company") (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is pleased to announce that its wholly-owned subsidiary, Almonty Korea Tungsten Corporation ("AKTC"), has signed a memorandum of understanding ("MOU") with the Yeongwol County Office in South Korea to secure the location of the Sangdong Downstream Tungsten Oxide Plant. Yeongwol is located approximately 30 km’s from the Sangdong Tungsten Mine and will be a hub for high-tech industries utilizing local mineral resources.
Key terms of the MOU include that AKTC proposes to establish a factory of about 60,000 square meters within the Yeongwol County Opportunity Development Special Zone to produce refined and smelted tungsten, and tungsten alloys. Yeongwol County announced that it will provide full legal and institutional support to Almonty. During the process, AKTC proposes to invest approximately 100 billion won (approximately US$72 million) in the construction of the downstream tungsten oxide plant, and an additional 40 billion won (approximately US$29 million) in processing plant facility upgrades required to increase tungsten concentrate production at the Sangdong Tungsten Mine. As a result, Yeongwol-gun will serve as an outpost for Korea's core industrial belt after facing a new era of regional economic development and job creation according to the mining and plant construction sectors.
The signing of the MOU reaffirmed the agreement between Yeongwol County and AKTC to foster high-value-added industries in the region and build critical raw materials industrial infrastructure.
Choi Myeong-Seo, the Governor of Yeongwol County said, "There were many setbacks and hardships, but we have worked together to overcome them well. As a large-scale investment in Yeongwol-gun, I hope it will be of great help as it is implemented well according to this MOU agreement."
"Based on the successful Sangdong Mine redevelopment project, we will quickly complete the ecosystem of the tungsten industry so that Yeongwol-gun can lead the construction of a critical mineral industrial complex in Gangwon-do," said Yoo Woo-jong, vice president of AKTC. In addition, he mentioned that "This large-scale investment will not only revitalize the local economy, but will also contribute importantly to the establishment of a national resource security system by securing a stable supply chain of needed strategic minerals essential for Korea's high-tech industries."
On the same day, during a discussion on pending issues held in Yeongwol-gun, he stated that he expects Taebaek and Yeongwol to be tied to the critical mineral industrial belt to attract more companies, thereby gaining new growth engines for the economy of Gangwon Special Self-governing Province.
The signing ceremony was attended by many government officials and Company representatives, including Choi Myung-seo, the Governor of Yeongwol County, Yoo Woo-jong, Vice President of AKTC, Manuel Pacheco, COO of AKTC, Lee Gwan-woo, Vice Governor, and Yoo Young-man, Team Leader of the Regional Economy Department of the Yeongwol County Office. |