How EQ Resources Is Expanding Tungsten Production Amid Global Supply Risks

Global Tungsten Market Context

Tungsten remains a critical mineral globally, with restricted countries like China, Russia, and North Korea controlling the majority of reserves and production. This geopolitical concentration has heightened the strategic importance of alternative sources, positioning companies like EQ Resources Limited as key players in diversifying supply chains.

EQ Resources’ Operational Footprint

EQ Resources operates two significant tungsten mines – Mt Carbine in Australia and Barruecopardo (also known as Saloro) in Spain. Both mines are producing assets with long mine lives and expansion potential. Mt Carbine boasts a 19-year mining permit and is targeting increased production to 1,750 tonnes of tungsten trioxide annually. Meanwhile, Barruecopardo, Europe’s largest tungsten mine, is ramping up production beyond 1,300 tonnes per year and is supported by a substantial A$200 million capital investment prior to EQ Resources’ acquisition.

Funding and Strategic Partnerships

In 2025, EQ Resources raised A$24.6 million to reduce debt and support working capital needs. Notably, the US Export-Import Bank has issued a letter of interest for a potential 10-year debt facility of up to US$34 million, aimed at advancing development at Mt Carbine. This funding aligns with the company’s strategy to secure sustainable financial backing from reputable institutions.

Strategic collaborations further bolster EQ Resources’ growth trajectory. Partnerships with Masan High-Tech Materials and Elmet Technologies focus on enhancing production capabilities and expanding market reach, particularly in Western supply chains. Additionally, EQ Resources is exploring the acquisition of Tungsten Metals Group, which would integrate a major ferrotungsten smelter outside China, diversifying its product portfolio and customer base.

Market Position and ESG Credentials

EQ Resources emphasizes its strong environmental, social, and governance (ESG) performance, a critical factor for investors and customers amid increasing sustainability demands. The company’s mines operate with a focus on responsible resource development, which complements its strategic positioning in a market driven by both demand growth and geopolitical tensions.

With over 2.8 billion securities on issue and a market capitalization of approximately A$108 million as of July 2025, EQ Resources is carving out a significant role in the tungsten sector. Its secured offtakes at spot pricing and shipments to leading customers across the US, Europe, and Asia underscore its global reach.

Looking Ahead

EQ Resources is actively progressing underground studies at Mt Carbine and advancing ore sorting technology at Barruecopardo, aiming to optimize production efficiency. The company’s focus on expanding mine life, increasing output, and securing strategic funding sets the stage for sustained growth in a critical mineral market that remains under geopolitical scrutiny.