Masan High-Tech Materials (MSR) Signs Tungsten Processing Deal with South Korea's GB Innovation

Overview

Masan High-Tech Materials (MSR), a subsidiary of Masan Group (MSN), has signed a processing agreement with South Korea’s GB Innovation (GBI) to convert tungsten concentrate into ammonium paratungstate (APT) and tungsten oxide for the semiconductor industry. The partnership aims to expand MSR’s processing capacity to over 8,000 tons per year, leveraging its Nui Phao mine and existing infrastructure to serve the growing demand for high-purity tungsten outside China.

Key Facts

• MSR will process tungsten concentrate from GBI into APT and tungsten oxide at its existing chemical plant.
• Processing fees are linked to the Fastmarkets APT price index with a floor-price mechanism to protect margins.
• GBI targets annual production of approximately 200,000 tons of run-of-mine (ROM) ore.
• MSR aims to expand its tungsten oxide processing capacity to over 8,000 tons per year.
• MSR holds resources at Nui Phao and Nui Chiem with potential of about 115 million tons of polymetallic tungsten.
• Tungsten is essential for producing tungsten hexafluoride, a precursor for advanced semiconductor devices.
• The partnership addresses supply chain risks for South Korea’s semiconductor industry, which relies heavily on Chinese processing.

What Happened

Masan High-Tech Materials announced it has signed a toll-processing agreement with GB Innovation, a South Korean tungsten mining company. Under the deal, MSR’s tungsten processing and chemical plant will convert GBI’s tungsten concentrate into APT and tungsten oxide. The processing fee is determined as a percentage of the Fastmarkets APT price index and is protected by a floor-price mechanism, which helps limit margin downside risk and improve earnings predictability.

According to MSR, while many countries have tungsten mining resources, large-scale processing capacity outside China remains very limited. South Korea possesses tungsten resources, with GBI targeting about 200,000 tons of ROM ore annually, but lacks domestic processing capacity to convert concentrate into higher-value products. Tungsten is a critical material for producing tungsten hexafluoride, used in advanced logic chips, DRAM, and 3D NAND memory. Recent shortages of high-purity tungsten have highlighted the vulnerability of semiconductor material supply chains.

Market Context

MSR shares closed at VND 36,300 on July 8, 2026, down 1.36% on volume of 1.9 million shares on HOSE. MSN closed at VND 69,000, up 0.58% on volume of 10.9 million shares. The partnership comes amid growing global demand for non-China tungsten processing capacity, driven by semiconductor supply chain diversification and AI infrastructure investment. MSR’s existing Nui Phao mine and processing plant position it as a key player in the strategic materials sector.

Strategic Significance

The agreement strengthens MSR’s position as a leading tungsten processor outside China, capitalizing on its existing infrastructure and resource base. By securing a long-term processing contract with a floor-price mechanism, MSR reduces earnings volatility and improves capacity utilization. The partnership also aligns with global efforts to diversify critical mineral supply chains, particularly for the semiconductor industry. MSR’s ability to scale processing capacity to over 8,000 tons per year could attract additional toll-processing deals from other mining companies seeking alternatives to Chinese processors.

What to Watch

• Q2 2026 earnings report for MSR and MSN, expected in August, to assess initial financial impact.
• Updates on GBI’s mining ramp-up and concentrate shipments to MSR.
• Any additional toll-processing agreements with other tungsten miners.
• Progress on MSR’s Nui Phao expansion and Nui Chiem resource development.
• Global semiconductor demand trends and tungsten price movements, particularly the Fastmarkets APT index.