Will the Sangdong Mine, which experienced the rise and fall of the 'blue gem' tungsten, regain its former glory?
- Mine closure without replacement industry, huge aftereffects on local economy… virtual disappearance of local area
- Annual production of 1.2 million tons… Tungsten oxide plant to be built after 2027, 50% domestic demand
- Residents: “Need to work together with the local community to coexist”… Bold investment from the government is urgently needed
Tungsten, the 'blue gem', illuminated by ultraviolet (UV) light[Photographed by Lee Jae-hyun]
(Yeongwol = Yonhap News) Reporter Jaehyun Lee = Attention is being paid to whether the 'blue jewel' tungsten will restore the former glory of Sangdong-eup, Yeongwol, Gangwon-do.
Almonty Korea Tungsten, which acquired the Sangdong mine, will reopen the Sangdong mine, which closed 30 years ago, and restart the production line from the end of 2025.
Currently, construction of a processing plant to process 0.44% grade ore to obtain 65% grade tungsten is in full swing at the site of the former Sangdong Mining Office in Gurae-ri, Sangdong-eup, Yeongwol.
The civil engineering construction sector is 55% complete. It is scheduled to be completed by June next year and to be in normal operation by the end of the same year.
Sangdong-eup in Yeongwol, which once prospered as much as Myeongdong in Seoul due to tungsten, but was pushed to the brink of local extinction after 30 years of decline following the complete closure of the mine in 1994, is dreaming of a second revival with the reopening of the Sangdong mine.
Construction site of Sangdong-eup Seon-gwang plant[Provided by Almonty Korea. Resale and DB prohibited]
The glory of development and the pain of mine closure Sangdong mine… Decline due to lack of alternative industry
Yeongwol Sangdong-eup is a representative mining area that once supported South Korea through the export of tungsten ore.
Sangdong Mining, which opened in 1916, produced 2,700 tons of tungsten ore annually for 69 years until 1985, selling it to Japan and other countries, earning $18.9 million annually.
At its peak, a new word, “heavy stone dollar” () was even coined. It refers to dollars earned from exporting heavy stone.
It not only served as the central axis of domestic exports, but also led the 'Yeongwol Sangdong era of overflowing money.'
In 1964 (when exports per capita were $4), Sangdong Mining contributed greatly to South Korea's achievement of $100 million in exports.
Kyochon Market, which used to be the center of Sangdong-eup, was called the 'Second Myeongdong' as it was the second busiest street after Myeongdong in Seoul.
However, starting in 1986, when Chinese tungsten began to dump and invade the international market, Sangdong Mining Company began to decline.
Sangdong Mining, which was forced out due to price competitiveness with Chinese tungsten and lack of smelting technology, ceased mining in 1992, 76 years after opening, effectively closing down the mine.
The old appearance of the Daehan Heavy Industries Sangdong Mining PlantThe boiler chimney and chemical processing plant of the Daehan Tungsuk Sangdong Mine in Sangdong-eup, Yeongwol-gun, Gangwon-do, once called 'Heavy Stone Buddha' and fed the Republic of Korea. [Yonhap News Agency photo]
After repeated restarts and other operations, Sangdong-eup also declined rapidly when the Daehan Tungsten Sangdong Mine was completely closed in 1994.
The sudden closure of Sangdong Mine, the world's largest single tungsten mine, had serious repercussions on the local economy.
The population, which reached 23,462 in 1972, rapidly decreased to 2,207 at the end of 1995, 2,022 at the end of 1998, and 1,324 at the end of 2008.
The current population is 1,007. It is on the verge of collapsing into the 1,000 range.
Compared to the peak population in 1972, 52 years ago, it is virtually the same as local extinction.
The history of regional economic ups and downs, from development booms to declines due to mine closures, remains intact to this day.
The rapid decline of Sangdong-eup coincides with the decline in the population of Yeongwol-gun. The population of Yeongwol, which peaked at 124,717 in 1967 when Sangdong-eup was prosperous, declined with the closure of the mine and has now fallen to 36,899.
'Second Myeongdong'The appearance of Kyochon Market in Sangdong-eup, Yeongwol-gun, Gangwon-do, which was known as the second busiest street after Myeongdong in Seoul in the 1970s when the Daehan Heavy Industries Sangdong Mining Company was in full operation. [Yonhap News Agency photo]
The rise and fall of tungsten alone, leaving only harsh aftereffects… Expectations and concerns about reopening
Sangdong-eup is the space that most symbolically shows the aftereffects left on the local economy when a mine was closed without any replacement industry.
In this once gloomy area, a redevelopment movement began in 2012. However, it has not been realized for over 10 years, and recently, a favorable wind has begun to blow again. The world has paid attention to Yeongwol Tungsten due to the problems of China's tungsten production restrictions and import regulations caused by the US-China conflict.
Diversification of the tungsten supply chain was necessary because 80-90% of the world's supply depended on Chinese products.
The Sangdong mine has been brought into the spotlight again after 30 years since its closure, with predictions that its potential tungsten production will reach approximately 1 billion tons and its economic value will reach approximately 60 trillion won.
The estimated reserves of tungsten with a grade of 0.44%, which is more than twice the global average, amount to 52.8 million tons. This is an amount that can be used for more than 50 years if only 1 million tons are mined each year.
Almonty Korea Tungsten, which is scheduled to produce 640,000 tons per year starting at the end of the same year after the completion of the beneficiation plant in June next year, plans to increase production to 1.2 million tons per year by adding a second production line starting in 2027.
Construction site of Sangdong-eup Seon-gwang plant[Photographed by Lee Jae-hyun]
The government also took quick action.
Last November, the government designated Sansol-myeon (formerly Jungdong-myeon) near Sangdong Mine as the second opportunity development special zone and decided to develop a key material industrial complex.
A tungsten oxide plant that processes 65% grade tungsten into 99.99% grade high-purity tungsten is scheduled to be built here after 2027. The anchor company is also Almonty Korea Tungsten. The investment size is 110 billion won, and it is expected to create about 150 jobs.
In this way, 600,000 tons, or 50% of the 1.2 million tons produced at the Sangdong mine, will be used for domestic consumption through domestic tungsten oxide plants, which will drastically reduce dependence on tungsten imports.
A blueprint for rebuilding Sangdong-eup, which experienced ups and downs due to tungsten, is being drawn up, but there are still many tasks that need to be solved.
Kim Gyeong-su (57), chairman of the Sangdong-eup Current Affairs Countermeasures Committee, expressed both concern and anticipation for the reopening, saying, “We need to carefully examine whether key strategic materials are being completely exported and whether, as foreign companies, they are not contributing little to the local community.”
He continued, "We are building a tungsten oxide plant for domestic consumption, but it is not yet known when it will be put into operation, and we must thoroughly prepare measures to address environmental issues such as the resulting wastewater and waste."
'Blue Jewel' Tungsten[Provided by Almonty Korea. Resale and DB prohibited]
Tungsten, along with rare earth elements, is a future strategic resource with the highest risk of supply constraints. It has a high melting point, density, and strength, so it is widely used in aircraft and spacecraft engine parts, semiconductors, cutting tools, and defense.
Recently, tungsten has been used to enhance the performance of high-performance plasma nuclear fusion, also known as an artificial sun. That is why it is nicknamed the blue jewel.
The government has also classified tungsten as one of the five key mineral resources and has been managing it specially since 2018. Therefore, experts advise that bold investment and interest in tungsten, which is abundant domestically, are as urgent as efforts to secure overseas resources.
