Almonty Announces the Signing of the Power Supply and Consumption Agreement for the Sangdong Mine Development with Korea Electric Power Corporation
Almonty Industries Inc. (“Almonty” or the “Company”) (TSX:AII / OTCQX: ALMTF / Frankfurt: 1MR)) announces that it has signed a Power Supply and Consumption Agreement with Korea Electric Power Corporation (“KEPCO”) for the construction and supply of a power line to the Sangdong Tungsten Mine located in the Republic of Korea.
The Power Supply and Consumption Agreement, entered into on May 29, 2019 between Almonty Korea Tungsten Corp. (“AKTC”), a wholly-owned subsidiary of Almonty, and KEPCO, a state-owned monopoly power supplier, is for the construction and installation of a 10MW exclusive power line to the site of the Sangdong Mine. Under the Power Supply & Consumption Agreement, KEPCO is responsible for building the high voltage power line (22.9kV) of 22.8 km and auxiliary facilities connecting the Taebaek Sub-station of KEPCO and the transfer point designated inside the Sangdong Mine site.
The construction cost of KRW2,044 million (approx. US$1.7 million) will be entirely borne by KEPCO as a part of its power line subsidy program for industrial promotion. KEPCO will commence the construction of the power line with the target completion by June 23, 2020, which will be several months before the scheduled completion of the processing plant at the mine.
Almonty’s Chairman, President and CEO Lewis Black said:
“The signing of the Power Supply and Consumption Agreement for the Sangdong Mine development will be another important and meaningful step to Almonty for bringing what was historically one of the largest and lowest-cost tungsten mines in the world back into production. We are particularly pleased and grateful for KEPCO’s subsidized construction of the power line.
The subsidized power line extension by the government power company, in addition to the subsidized connection of potable water line by the County Government in 2017, signifies the continued support of the South Korean government for the development of the Sangdong Mine. The in-time supply of power will contribute to ensuring the scheduled completion of the processing plant and other facilities at the Sangdong Mine, enabling AKTC to meet targeted commercial production in Q4 2020.”
About Almonty Industries Inc.
The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.