Supply Crunch Looms: Will TGN Meet Global Tungsten Shortages?

• One of the largest tungsten resource bases outside China
• Flagship projects at Mt Mulgine and Hatches Creek with polymetallic potential
• Strong global demand growth driven by supply constraints and Chinese export restrictions
• Staged, low-cost development strategy including oxide gold extraction
• Upcoming milestones include scoping studies and resource drilling through 2025-2026

Strategic Positioning in a Critical Market

Tungsten Mining NL (ASX – TGN) has presented a comprehensive broker update underscoring its unique position in the global tungsten market. With one of the largest tungsten resource bases outside China, the company is strategically placed to meet rising demand for this critical metal. Tungsten’s importance is underscored by its inclusion on critical minerals lists worldwide and the tightening of supply due to Chinese export restrictions imposed in early 2025.

The company’s flagship assets, Mt Mulgine in Western Australia and Hatches Creek in the Northern Territory, boast significant polymetallic deposits containing tungsten, molybdenum, copper, gold, and silver. This diversified mineral profile enhances the potential revenue streams and underpins a robust development outlook.

Market Dynamics Driving Demand and Supply Constraints

Global tungsten demand is forecast to more than double by 2033, with the market size expected to grow from USD 5.1 billion in 2024 to USD 11.6 billion by 2033, reflecting a compound annual growth rate of 7.8%. China currently controls over 80% of tungsten supply, and recent export restrictions have exacerbated supply deficits, creating a compelling opportunity for alternative sources like TGN.

Prices have surged to 12-year highs, reflecting the geopolitical and supply-side pressures. The scarcity of new tungsten projects outside China, combined with declining output from existing mines, has intensified the market’s focus on secure, ESG-compliant supply chains, a niche TGN aims to fill.

Development Strategy and Project Highlights

TGN is advancing a staged, low-cost development approach. Initial plans include extracting oxide gold from overburden at Mt Mulgine to generate early cash flow, which will help fund subsequent tungsten production. This innovative strategy aims to fast-track approvals and reduce upfront capital requirements.

The Mt Mulgine project is one of the world’s largest undeveloped tungsten deposits, with a global mineral resource estimate of approximately 383,000 tonnes of contained tungsten trioxide (WO3). The nearby Hatches Creek project offers additional high-grade tungsten and copper resources, with a maiden inferred resource recently announced.

Technical studies, including scoping and prefeasibility studies, are underway, with key milestones expected through late 2025 and into 2026. These include resource drilling, scoping study results, and progressing approvals, all critical steps toward commercial production.

Experienced Leadership and Capital Position

The company benefits from a seasoned board and management team with deep expertise in mining, finance, and strategic investment. With a market capitalization of approximately $66.5 million and net cash of $3.13 million as of March 2025, TGN is capitalized to execute its near-term development milestones.

Investors are watching closely as the company leverages its world-class resources and favorable market conditions to position itself as a reliable supplier of tungsten, a metal critical to defense, technology, and industrial sectors worldwide.

Bottom Line?

As tungsten supply tightens globally, TGN’s progress toward production could redefine Australia’s role in this critical minerals market.

Questions in the middle?

• How will TGN navigate regulatory approvals to accelerate project development?
• What impact will evolving tungsten prices have on the company’s staged development strategy?
• Are there potential strategic partnerships on the horizon to support TGN’s growth ambitions?