Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 67

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 67
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, kinetic penetrators, tank armor, aircraft counterweights, and radiation shielding in submarines and armored
vehicles. As defense investment becomes a strategic priority, ensuring access to secure and reliable tungsten supply chains has emerged
as a shared objective among Western governments. NATO’s December 2024 Defence-Critical Supply Chain Security Roadmap formally designated
tungsten as one of 12 defense-critical raw materials, further affirming its importance in national and collective security planning (North
Atlantic Treaty Organization, “Defence-Critical Supply Chain Security Roadmap”, July 2024).

Tungsten Market
Dynamics

Since the tungsten
market is characterized by its critical importance to various high-tech and industrial applications, it is deemed a critical material
by the European Union, the United States, Australia, Canada, and South Korea due to its supply risks and economic value. According to
the United States Geological Survey, global primary tungsten production was expected to be approximately 81,400 metric tonnes in 2024
(Mineral Commodity Summaries).

The global tungsten
market is relatively small in volume but highly concentrated in supply, with China dominating over 80% of the market (Mineral Commodity
Summaries). Other significant producers include Vietnam, Russia, Bolivia, and a few European countries like Portugal and Spain (U.S.
Geological Survey, “Tungsten Statistics and Information,” 2024). This concentration has led to increased market tension
and supply chain vulnerabilities, particularly as geopolitical tensions rise and China limits exports of tungsten. The U.S. supply chain
is especially vulnerable, as an estimated 10,400 metric tonnes of tungsten were imported into the United States in 2024, representing
around 13% of global primary tungsten production of 81,400 metric tonnes (Mineral Commodity Summaries). Considering that China (82.3%),
Russia (2.5%), and North Korea (2.1%) collectively control a significant majority of global supply (approximately 87%), the risk to Western
procurement becomes increasingly evident (U.S. Geological Survey, “Tungsten Statistics and Information,” 2024).

This vulnerability
has been formally acknowledged by the U.S. Department of Defense, which announced in May 2024 that, beginning January 1, 2027, it will
prohibit the mining, refining, and production of tungsten, tantalum, and certain magnets in Iran, Russia, North Korea, and China for
military