The deal inked May 29 between Almonty subsidiary Almonty Korea Tungsten (AKTC) and state-owned KEPCO includes the construction and supply of a 10-megawatt exclusive power line to the Sangdong site.
Specifically, KEPCO will oversee the building of a high-voltage power line (22.9kV) for 22.8 kilometres, along with auxiliary facilities to connect the Taebaek substation of KEPCO and the transfer point at Sangdong.
The project has a price tag of about W2,044 million (about US$1.7 million), which will be shouldered by KEPCO, as the project is part of its power line subsidy programme for industrial promotion.
Construction of the project should be complete by June 23, 2020, Almonty said. That target falls several months prior to when the site's processing plant is scheduled for completion.
"The … agreement … 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," chairman, president and CEO Lewis Black said.
"We are particularly pleased and grateful for KEPCO's subsidised construction of the power line."
Commercial production at Sangdong is set for the December quarter of next year.