Vietnamese tungsten producer Masan High-Tech Materials said on Thursday it would sell a 4.99% stake to US-based tungsten products supplier Elmet Group (NASDAQ: ELMT) in a deal valuing the company at about $2.5 billion.
Masan High-Tech also agreed to supply and process about 1,250 metric tons of tungsten trioxide equivalent annually for Elmet under a contract of at least eight years. The agreement is expected to generate about $1.5 billion in gross revenue at current prices.
Shares in Masan High-Tech rose 7% on Thursday morning after the announcement.
Tungsten, an extremely hard metal used in defence and electronics applications including ammunition and semiconductors, is classified by many countries as a critical mineral.
Masan High-Tech owns the Nui Phao mine, one of the world’s largest tungsten mines outside China, and which accounts for nearly all of Vietnam’s estimated annual output of about 3,400 tons.
Vietnam was the world’s second-largest tungsten producer after China in 2024, according to the U.S. Geological Survey.
In June, the company announced plans to expand the Nui Phao mine and nearby Nui Chiem area, potentially adding 115 million tons of tungsten-polymetallic resources as it seeks to expand its role in the global critical-minerals supply chain.
Masan High-Tech said the transaction marked the first step in its strategy to build long-term partnerships with customers seeking secure tungsten supplies, and that it would continue to explore similar partnerships in key markets.
The stake sale to Elmet, which remains subject to regulatory and corporate approvals, is expected to be completed in the first half of October.
Following the transaction, Masan High-Tech’s parent, conglomerate Masan Group MSN.HM, will remain the controlling shareholder with about 87.46% ownership.
Elmet produces tungsten materials, precision components and high-energy systems at facilities in Maine, Michigan and Ohio.
Last week, it won a US Defense Logistics Agency contract worth up to $2 billion to help rebuild the National Defense Stockpile and bolster US tungsten supply.
Jefferies Singapore acted as the exclusive financial adviser to Masan High-Tech.
(Reporting by Phuong Nguyen; Editing by Muralikumar Anantharaman and Subhranshu Sahu)
