Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) reported that the Portuguese Environment Agency (Agencia Portuguesa do Ambiente IP) has issued a favorable environmental impact declaration, subject to standard regulatory conditions, for the Borralha tungsten project, which is entirely owned by the company and situated in Montalegre, northern Portugal, as stated in a release on January 12.
This declaration is further supported by a formal letter of recognition from idD Portugal Defense, the public entity responsible for overseeing the nation's defense industry, acknowledging Allied's leadership in revitalizing tungsten production in Portugal. idD Portugal Defense has endorsed Allied's Borralha tungsten project as a strategic initiative of national importance, influencing Portugal's and Europe's defense supply chains, the company noted.
This essential regulatory milestone eliminates a significant obstacle to the project's development and eventual production, enhancing Allied's capability to advance the Borralha project — one of Europe's most significant tungsten assets — within a framework of responsible environmental and social governance.
"The issuance of the environmental impact declaration for the Borralha project marks a significant regulatory milestone for Allied," stated Allied Chief Executive Officer and Director Roy Bonnell. "This approval highlights the quality of the technical and environmental work completed so far and enables the company to move the Borralha project into the next phase of permitting and detailed engineering, subject to compliance with the conditions set by the Portuguese authorities."
This major permitting milestone allows the project to progress to the execution and RECAPE (environmental compliance report of the execution project) stage, followed by the licensing phase.
The strategic tungsten project aligns with the EU Critical Raw Materials Act, supporting the diversification of supply for critical industrial and defense-related applications, the company stated.
The project has been approved for modern underground mining development, featuring closed-loop water management, filtered dry-stacked tailings, and comprehensive environmental monitoring and mitigation measures, the release indicated.
Allied Critical Metals also mentioned that the initiative offers an opportunity to contribute to regional economic development in Montalegre, northern Portugal, through job creation, local procurement, and long-term investment.
The company stated it is on track with its project development, aiming to complete an industrial-scale processing plant at Borralha by the end of 2027.
The declaration, or "Declaracao de Impacte Ambiental Favoravel Condicionada," confirms the environmental acceptability of the Borralha project and marks a significant regulatory milestone, Allied Critical Metals stated. This approval enables the project to advance to the execution and environmental compliance report stage and proceed to subsequent licensing phases in accordance with Portuguese environmental and mining legislation.
According to Allied President, Chief Operating Officer, and Director Joao Barros: "The Borralha project is a part of Portugal's mining heritage, and this approval sets the stage for a new chapter grounded in modern environmental standards, transparency, and respect for local communities. The Borralha project presents an opportunity to address historical environmental issues while creating skilled jobs and economic activity in the country's interior. The company is fully committed to working closely and constructively with local communities, the municipality, and public authorities throughout all stages of the Borralha project."
A Critical Raw Material
The Borralha project is situated in the parish of Salto, encompassing the village of Borralha, within the municipality of Montalegre. The project is anticipated, pending further permitting and development decisions, to create both direct and indirect jobs, support local and regional suppliers, and boost economic activity in an inland region of Portugal, the company stated. As mandated by the DIA, the company will establish and implement social development, community engagement, and environmental monitoring programs during the upcoming phases of project development.
This initiative is an underground mining development aimed at producing tungsten, with copper and tin concentrates as secondary products. Tungsten is designated as a critical raw material under the European Union Critical Raw Materials Act (Regulation 2024/1252) and is utilized in various industrial, energy transition, and defense-related applications. The company expressed its belief that the Borralha project has the potential to aid in diversifying the tungsten supply in Europe and enhance Portugal's role in developing strategic raw material supply chains within the EU and allied markets.
The environmental approval was based on an environmental impact assessment that examined the Borralha project's potential impacts on environmental, social, and cultural factors and identified mitigation, monitoring, and compensation measures to be implemented during construction, operation, and closure. Key design features assessed as part of the EIA include:
- Underground mining with minimal surface disruption
- Closed-loop water management systems
- Filtered tailings with dry stacking
- Environmental monitoring and contingency plans
- Rehabilitation of historical mine waste and legacy environmental liabilities
- Protection of water resources, ecosystems, and cultural heritage
The APA concluded that, subject to the implementation of prescribed conditions, the project may proceed from an environmental standpoint, the release indicated. The APA's favorable decision marks a significant derisking milestone for the Borralha project and reflects the comprehensive and rigorous work undertaken during the environmental impact assessment process.
The EIA was coordinated and led by Barros on behalf of the project partners and executed through the dedicated efforts of Allied's technical team, supported by a range of specialized national and international consulting partners with expertise in mining engineering, geology, environmental sciences, ecology, water resources, social impact, cultural heritage, and risk assessment. This collective technical effort formed the robust assessment framework that ultimately supported the positive environmental decision issued by the APA.
New PEA Anticipated Following Updated Resource Estimate
On December 4, 2025, Caesars Report highlighted that Allied Critical Metals announced an updated resource estimate for Borralha. The project now features 13 million tonnes in the measured and indicated resource category with an average grade of 0.21% WO3 (tungsten trioxide), along with an additional 7.7 million tonnes in the inferred resource category at an average grade of 0.18% WO3.
This translates to the measured and indicated resources containing 27,000 tonnes of WO3, equivalent to approximately 2.7 million mtu (metric ton units), while the inferred resources hold about 1.4 million mtu. The resource remains open in multiple directions, indicating potential for further expansion in the future.
"The updated resource will now be used for a Preliminary Economic Assessment which will be published in the first quarter," the newsletter stated. "The mine plan will likely be based on a long-hole stoping approach, and that's how the 0.09% WO3 cutoff grade was established. Initial metallurgical results indicate a low-cost gravity flow sheet with a recovery rate of 75-85%, while there is a chance to recover copper, tin, and silver as potential by-product credits (the impact of these by-products will hopefully already be visible in the Preliminary Economic Assessment)."
Following receipt of the DIA, the company mentioned it also plans to prepare the Borralha project of execution and RECAPE documentation, advance detailed engineering and technical studies, undertake additional environmental and social studies required by the approval conditions, and continue engagement with regulatory authorities and local stakeholders.
There can be no assurance that subsequent permits will be granted or that the project will proceed to construction or operation, the company noted.
The Catalyst: China Halts Tungsten Exports to Japan
Following a political conflict between Japan and China over remarks made by Prime Minister Takaichi Sanae in November concerning Taiwan, China's Ministry of Commerce issued a new directive on January 6 that prohibits exports to Japan of dual-use items intended for military end users, military purposes, or any other use that could enhance Japan's military capabilities, as reported by Shalina Cao for Fastmarkets on January 9.
Tungsten-related products, such as ammonium paratungstate (APT), tungsten oxide, and tungsten carbide, are included in the controlled list, known as the 2026 Catalogue of Dual-Use Items and Technologies Subject to Import and Export Licensing Control, announced by the Chinese General Administration of Customs (GACC).
Market participants also noted that the Chinese tungsten market does not heavily depend on demand from Japan. The overall scale of China's tungsten APT demand is in the hundreds of thousands of tonnes. Specifically, according to a producer, annual APT demand in China reaches about 110,000-120,000 tonnes. As the producer put it, "Compared with the domestic market, the 138 tonnes exported to Japan are almost negligible."
Jaeheon Lee, an associate professor at the Colorado School of Mines and former chair of the Mineral Metallurgical Processing Division Executive Committee at the Society for Mining, Metallurgy and Exploration, emphasized the mineral's resistance to corrosion and its status as the metal with the highest melting point, which makes it invaluable in the defense industry. Its applications include radiation and heat shielding, armor-piercing munitions, protective armor, and heat sinks for high-end electronics that tend to overheat. "In the U.S., there's no active mine. … Like other critical minerals and rare earths, there is no sustainable supply chain in the U.S.," Lee noted in an interview.
Benjamin Byun is the assistant mine superintendent and survey manager at what was once — and is soon to be again — the largest tungsten mine in the world, according to Stew Magnuson writing for National Defense on December 18, 2025. He is involved in the efforts by Almonty Korea Tungsten Corp. to reopen the Sangdong tungsten mine, which has been closed for over 30 years.
Streetwise Ownership Overview*
Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE)
Byun pointed out that tungsten is harder than steel and almost as heavy as gold. According to a U.S. Geological Survey fact sheet, it takes 0.04 grams of tungsten to make a smartphone vibrate, 65 grams for a stone hammer drill, and 750 grams to operate a movie theater projector. Byun also explained that tungsten is used in aircraft and rocket engines and 5G communication networks. Although the Sangdong mine has been inactive for decades, it possesses what real estate agents would describe as "good bones," he said.
According to Market Research Future, the Tungsten Market Size was estimated at US$17.9 billion in 2024 and is projected to grow from US$19.61 billion in 2025 to US$48.7 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.53 during the forecast period of 2025-2035.
Ownership and Share Structure1
Insiders own approximately 31% of Allied. About 16% is held by institutions and institutional investors, and the rest is held by retail shareholders.
The company has 170 million common shares issued and outstanding and 214 million common shares on a fully diluted basis. Its market cap is ~CA$130 million. Its 52-week range is CA$0.20–CA$0.89 per share.
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Important Disclosures:
- Allied Critical Metals Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Allied Critical Metals Inc.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
