Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 68

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 68
---
 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 procurement purposes. The measure aims to reduce reliance on foreign adversaries and reinforce domestic and allied sourcing
for defense-critical materials (Defense Federal Acquisition Regulation Supplement 252.225-7052, “Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten,” May 2024).

| 37 |

According to the
European Commission’s 2023 Study on the Critical Raw Materials for the EU, tungsten ranks as the raw material with the highest
economic importance among all 34 materials identified as critical. This classification reflects tungsten’s essential role in key
EU industrial sectors, including aerospace, defense, and advanced manufacturing. The study also notes that tungsten faces a high level
of supply risk due to limited global sources and high import reliance. The combination of economic significance and constrained availability
underpins its continued strategic prioritization in EU raw material policy (European Commission, “Study on the Critical Raw Materials for the EU 202