Almonty Industries, a tungsten concentrate producer, has executed a binding offtake agreement with Tungsten Parts Wyoming (TPW), a US-based defence contractor, and Metal Tech (MT), an Israel-based tungsten processor, to supply tungsten oxide.
Under the terms of the agreement, TPW will purchase a minimum of 40 tonnes (t) of tungsten oxide per month from Almonty.
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The material supplied is designated for exclusive use in US defence applications including missile, drone and ordnance systems.
MT will act as the intermediary, tasked with converting the tungsten oxide into tungsten metal powder, a process that can be carried out in Israel or the US. The end product is intended solely for TPW’s defence production programmes in the US.
The initial duration of the agreement spans three years from the first delivery date, with provisions for early termination and automatic annual renewals.
Deliveries are scheduled to begin as soon as Almonty commences the production of tungsten oxide in commercially viable quantities.
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By GlobalDataThe pricing structure includes a hard floor price, in line with existing market rates and subject to adjustments based on grade, without imposing a maximum price limit.
Almonty CEO Lewis Black said: “This binding offtake agreement represents a significant milestone for Almonty, securing both predictable revenue through a defined hard floor price and long-term demand tied directly to US defence programmes.
“Beyond commercial certainty, the agreement ensures that our tungsten oxide will serve a strategic, high-value end-use – reinforcing Almonty’s position as the key upstream supplier to the defence supply chain of the US and its allies.
“It reflects our broader commitment to aligning production with national security priorities while delivering sustainable value to my fellow shareholders and is another customer of Almonty who is happy to commit to our hard floor pricing terms as a condition of supply.”
In January this year, Almonty signed an exclusive offtake agreement with SeAH Group to supply molybdenum from Almonty’s Sangdong molybdenum project in South Korea.
