Deutsche Rohstoff AG, a German based resource company with a sharp focus on energy and strategic medals. Its activities are diversified into three business segments. Gold and Silver, Oil and Gas, and the High-Tech Metals
The company is also a major shareholder in Almonty Industries, a leading global player in the tungsten space with key projects in Portugal, Spain, and the highly anticipated Sangdong Project in South Korea.
Lyndsay Malchuk from Stockhouse Publishing recently caught up with Dr. Thomas Gutschlag, the Founder and Chairman of the Supervisory Board of Deutsche Rohstoff AG. Additionally, Thomas is also a Director on Almonty’s Board giving him unique, firsthand insights into Almonty’s operations, their vision and the critical role tungsten plays in securing the West’s technological and industrial independence.
The following is a transcription of the above video, and The Market Online has edited it for clarity.
Lyndsay: I think the best place to start is a bit about Deutsche Rohstoff. This is a company known for its strategic investments in both energy and critical minerals. Having said that, from your perspective, what is the overarching strategic goal of your company? And specifically, how does your stake in Almonty Industries fit the broader vision?
Dr. Gutschlag: Well, I mean basically we are looking for good opportunities in the resources sector. We have been doing that for the last 20 years, and we are trying to be a bit ahead of the crowd in some respect. We were very early in the US shale oil development, for example, and that proved to be a very good move. We’ve grown nicely over the last 15 years in that market. And so, we are trying to find good stories before others find them. And Almonty or the tungsten industry is such a story. I mean, tungsten was overlooked for many years by investors. We invested in that industry early as well, and I think we found the best company possible with Almonty finally and are very happy to be in the sector and also especially in Almonty.
Lyndsay: We’ve learned a lot about Almonty and have seen they hold an impressive footprint within the tungsten projects in Europe and Asia. So in your opinion, what is the geopolitical and industrial significance of these projects, particularly for western nations looking to reduce that reliance on China for critical raw materials?
Dr. Gutschlag: Tungsten is used in a variety of very important and growing industrial applications. It’s not only defense, but also a lot of other important products that are made of tungsten, which has a very high melting point, and you can make very hard steel of it. So, I think the importance of Almonty’s project can hardly be overestimated. I mean, there’s basically very, very few projects that may come into production over the next say five to 10 years. So Almonty ‘s projects in project in Europe, as well as especially Sangdong, are, in my opinion, the major opportunity for the western world to a secure supply of tungsten. And I mean the importance of tungsten is ever growing. We’ve recently seen all the rush to the defense industry. And all these players will need tungsten in their rockets, in their tanks or whatever they want to produce. It always needs tungsten. And so I think we are in a very unique position here with Almonty and happy to have had the chance to co-develop that.
Lyndsay: Let’s dip over to the Sangdong project in South Korea. It has been making headlines as potentially one of the most significant tungsten mines outside of China. Have you been able to visit the site?
Dr. Gutschlag: Yes, twice actually. So, the last time was in November 2024, so a couple of months ago. And it’s quite impressive. I mean, it’s always stunning to visit an underground mine because it’s such an impressive place. The mine is great. It’s ready to produce. I mean basically everything is there and in place so we can immediately start mining. There’s also a lot of ore at the surface, so that’s also a good thing because we can start with that, or we don’t need to really mine right from the beginning. And the processing plant is under construction and is going to plan. It’ll be a very impressive processing plant for a lot of tons to be processed during the year.
I was very impressed. Also, the very good relations to the community. It’s extremely important that the locals support the project the mine. And that’s the case. The team in South Korea and Lewis have done a great job to build these relations and to ever strengthen them. So, I think we are really ready to get started. And it will become a great success. I have no doubt about that.
Lyndsay: Now, Almonty recently announced that it intends to relocate its corporate base to the US and begin collaborating with American Defense International. They also have added to their Board US General Perna. So, what strategic potential do you see in this move, especially with regard to defense supply chains and valuation of the company?
Dr. Gutschlag: Well, obviously the world is quickly changing at the moment. And so, supply chains really are rebuilt in a way especially for critical metals. All the world is looking for critical metals. Tungsten is one of them, but it’s an important one. And I think the United States will be the center of that rebuild. And I think it’s good to be close to that center, close to the decision makers and close to the largest capital market in the world. I think we’ll be able to attract more investment from US investors, and we’ll be close to the decision makers who are deciding about where to supply their tungsten.
Lyndsay: If we look ahead with global demand for tungsten set to rise and governments increasingly recognizing its importance. What role do you envision Almonty and Deutsche Rohstoff playing in the critical mineral space for the next three years?
Dr. Gutschlag: Well, as I said already, I think we’ll be the major non-Chinese supplier and, and there’s not many to be seen over the next years that that could be added to that portfolio. So I think we are in a unique position in that way. I think it’s kind of a once in a lifetime opportunity to be invested in such a company because everything has developed in our favor over the last couple of years.
And the team did a great job to build Sangdong. And it’ll be a fantastic tungsten mine with very good grades and good support by the government and everyone in Korea. And I think there’s still a lot of potential for further development for Sangdong itself for downstream activities, downstream production for molybdenum for example. We know that there’s a large molybdenum reserve below the tungsten reserve, so tremendous potential. And I think we’ll be happy to help to develop that potential as we did in the last 10 years.
You can find Deutsche Rohstoff AG on the Frankfurt Stock Exchange under the symbol DR0.DE. For more information about the company visit rohstoff.de
Company shares last traded at €36.50
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