Tornado Alley (PROG)

[12yearplan]

First of many casualties of new regime in da states:

Reasons for US domestication

With rising global tensions, Almonty Industries carefully evaluated various scenarios and concluded that initiating the US domestication process was the most strategic course of action. The decision was motivated by several key factors:

Starting January 1, 2027, the Department of Defense (“DoD”) will implement a final rule under Section 844 of the FY 2021 National Defense Authorization Act (“NDAA”) and Section 854 of the FY 2024 NDAA. This rule expands existing restrictions on sourcing critical materials like tungsten, tantalum, and certain magnets from "covered countries," including Iran, Russia, North Korea and China. These restrictions will prohibit not only the melting and production of such materials in covered countries but also their mining, refining, and separation at any stage of the supply chain. This marks a significant shift, aligning with US efforts to bolster the domestic industrial base for critical minerals and reduce dependency on adversarial nations.

The rule also tightens exemptions for commercially available off-the-shelf items, reducing flexibility for the private sector in sourcing these critical materials.

Adding to these challenges, the United States announced mid-September 2024 the finalized Section 301 tariff increases on imports from China, further complicating the supply chain landscape for critical materials.

Additionally, since December 2024, China has imposed restrictions on 'dual-use' technologies for civilian and military purposes, specifically targeting the United States and including tungsten, gallium, germanium, and antimony. These restrictions have significantly disrupted global supply chains, amplifying the urgency for Western nations to secure independent sources of critical minerals. China's dominance in critical mineral production, bolstered by subsidies and control over key raw materials from Africa and Latin America, continues to pose challenges for nations reliant on these essential resources for advanced technologies, including semiconductors, defense applications, and clean energy solutions.

The latest Chinese export bans extend to super-hard materials, including tungsten, which is indispensable for weapons manufacturing, cutting tools, and aerospace technologies.

Sangdong Mine is uniquely positioned to address these supply chain challenges. Almonty’s development of Sangdong represents a significant step toward reducing reliance on China while contributing to the global effort of "friendshoring" critical minerals. Notably, 45% of Sangdong's potential long-term tungsten output is already committed to the United States through a long-term supply agreement with Global Tungsten & Powders who are based in Pennsylvania.

With production expected to ramp up by mid-2025, Sangdong is poised to serve as a cornerstone for Western tungsten supply chains, ensuring greater stability and security in the face of rising demand and geopolitical uncertainty.

The US domestication plan has been unanimously approved by the Company’s Board of Directors and executive management team. This decision underscores the shared confidence in the strategic value of redomiciling to the United States and its alignment with the Company’s long-term objectives.

Completion of the US domestication remains subject to court, shareholder and regulatory approvals and compliance with all applicable legal requirements. While every effort is being made to ensure a smooth and timely transition, unforeseen regulatory or operational challenges may impact the timeline. The Company is working closely with authorities and partners to manage all regulatory and operational aspects, with completion of the US domestication expected during the first quarter of 2025. Almonty is committed to keeping stakeholders informed of any developments and acknowledges that the timeline may be influenced by the completion of regulatory reviews and the fulfillment of necessary conditions.
https://ceo.ca/@businesswire/almonty-announces-intention-to-relocate-to-the-united