Saloro Tungsten Production Set to Rise 50% with New XRT Ore Sorter Installation

Saloro Expansion: A Strategic Response to Market Dynamics

EQ Resources Limited (ASX: EQR) has announced a major expansion at its Saloro tungsten operations in Spain, aiming to increase ore sorting capacity by 50%. This move follows a robust production growth trajectory in 2024, highlighted by a 19% increase in tungsten concentrate output in the final quarter compared to the previous one.

The centerpiece of this expansion is the installation of a third TOMRA XRT Ore Sorter, scheduled for implementation in the second quarter of 2025. Alongside this, the company is upgrading the existing Ore Sorter Plant infrastructure, including the addition of a wet screening station designed to enhance fines recovery and overall sorting efficiency.

Technological Enhancements and Operational Efficiency

EQ Resources’ CEO, Kevin MacNeill, emphasized the operational benefits of the new sorter and associated upgrades. The third sorter will not only boost throughput but also relieve pressure on the plant’s crushing capacity, enabling a planned 20% increase in crushing throughput. The wet screening station will pre-wash and better classify feed material, reducing misclassification and improving tungsten recovery rates.

Importantly, the expansion leverages a historic low-grade ore stockpile through a dedicated feed station, providing additional tungsten units at a low cost. The plant’s current processing capacity of 100 tonnes per hour is expected to rise significantly, reinforcing Saloro’s position as Europe’s largest tungsten producer.

Market Context and Strategic Implications

This capacity boost comes amid heightened demand from Western customers seeking reliable tungsten supply chains. The urgency is underscored by recent export control measures imposed by China, the world’s dominant tungsten supplier, which have introduced supply risks globally. EQ Resources’ investment positions Saloro to capture this demand, potentially reshaping tungsten supply dynamics in Europe and beyond.

MacNeill highlighted the company’s commitment to continuous improvement and sustainability, noting that the ore sorting technology not only enhances production but also reduces the environmental footprint of operations. This aligns with broader industry trends emphasizing responsible mining practices alongside growth.

Looking ahead, the integration of the new sorter and infrastructure upgrades will be critical to delivering on production targets and operational efficiencies. The company’s ability to execute these plans smoothly will be closely watched by investors and market participants.