The mine will produce approximately 5,600tpa of molybdenum at full capacity. Credit: RHJPhtotos/Shutterstock.

Almonty Industries has announced an exclusive offtake agreement with SeAH Group, a leading Korean steel company and SpaceX contractor, to supply the entire production of molybdenum from Almonty’s Sangdong Molybdenum Project in South Korea.

This agreement ensures SeAH will purchase 100% of the molybdenum material produced at the Sangdong mine, securing a stable revenue stream for Almonty.

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The Sangdong Molybdenum Project, developed by Almonty’s subsidiary Almonty Korea Moly (AKMC), is fully permitted for mining and environmental operations.

The deposit is located in Sangdong, around 170km from Seoul and 20km from Taebaek, in Yongweol County, Kangwon-Do Province.

Based on historical data from the Korean Government, the mine is expected to operate for 60 years, with production set to begin by the end of 2026.

The mine will produce approximately 5,600 tonnes per annum (tpa) of molybdenum at full capacity.

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SeAH is constructing a $110m (158.56bn won) metals and fabrication facility in Temple, Texas, to supply fabricated metal products to SpaceX and the US defence and civilian aerospace sectors.

The offtake agreement guarantees a minimum price of $19 per pound, providing Almonty with financial stability and predictable revenue as it moves forward with the project.

Currently, the price of molybdenum is around $22 per pound.

Almonty CEO Lewis Black said: “We are thrilled to partner with SeAH M&S, a highly respected leader in the Korean market. This agreement underscores the strategic importance of AKMC and reflects strong confidence in Almonty’s ability to deliver high-quality resources.

“The floor price provides a stable foundation and access to low-rate domestic construction lending as we advance our moly project, while keeping the material in South Korea strengthens local supply chains and supports domestic industry.

“This collaboration builds on the success of our Sangdong Tungsten Project, positioning us to deliver another transformative project and further reinforce our leadership in the critical materials sector.”

South Korea’s large metals and shipbuilding industries rely heavily on imported molybdenum, primarily from China.

This agreement aims to strengthen South Korea’s domestic supply chain, reducing dependence on imports and benefitting local manufacturers.

The Sangdong Molybdenum Project is located approximately 150m from Almonty’s Sangdong Tungsten Project, allowing for significant synergies.

This proximity enhances logistical efficiency, reduces costs, and leverages shared infrastructure and expertise.

This offtake agreement aligns with Almonty’s strategic plan to address increasing demand in the West for molybdenum.