Supply Crunch Looms: Is Tungsten Mining Ready to Deliver?
Tungsten Mining NL (ASX, TGN) reinforces its position as a leading tungsten resource holder outside China, unveiling a robust development strategy aligned with soaring global demand and supply constraints.
- TGN holds one of the largest tungsten resource bases outside China
- Polymetallic deposits at Mt Mulgine, Watershed, and Hatches Creek
- Staged, low-cost development plan targeting production by 2027
- Recent $9.5 million capital raise to advance flagship projects
- Strategic US market engagement and downstream processing initiatives
Global Tungsten Supply Tightens
As tungsten prices hit 12-year highs, driven by China's export restrictions and a growing global demand for this critical mineral, Tungsten Mining NL (ASX, TGN) emerges as a key player positioned to address the tightening supply. With China controlling over 80% of global tungsten production and processing, the market faces significant geopolitical and supply risks, creating a strategic opportunity for alternative sources.
A Globally Significant Resource Base
TGN boasts a globally significant portfolio with polymetallic mineral resources at Mt Mulgine, Watershed, and Hatches Creek projects in Western Australia. Mt Mulgine, the flagship asset, ranks among the largest tungsten deposits outside China, enriched with molybdenum, copper, gold, and silver, offering diversified revenue potential. The company’s resource estimates, supported by competent person certifications, underscore the scale and quality of these deposits.
Strategic Development and Capital Raising
With a clear staged development strategy, TGN aims to commence tungsten production by 2027. The plan includes an initial focus on oxide gold extraction, followed by small- and large-scale tungsten projects. Recent successful capital raising of $9.5 million in September 2025 bolsters the company’s financial position, supporting ongoing feasibility studies and drilling programs. This measured approach aims to de-risk the projects while maintaining low development costs.
Positioning for US Market and Downstream Partnerships
Recognizing the strategic importance of tungsten in defense and technology sectors, TGN is actively pursuing US market engagement. The company plans to secure US-focused investor support, including from Department of Defense affiliates and critical mineral funds, alongside exploring research partnerships with agencies like the Department of Energy. Downstream testing of concentrate samples is underway to validate processing suitability, enhancing potential offtake agreements and long-term supply contracts.
Valuation Upside Compared to Peers
Peer comparisons reveal TGN’s resource scale and valuation metrics offer significant upside relative to other tungsten producers and developers. With a market capitalization of approximately $81 million and a net cash position strengthened by recent fundraising, TGN’s enterprise value per tonne of contained tungsten is notably lower than many peers, suggesting potential for value appreciation as development milestones are achieved.
Bottom Line?
Tungsten Mining’s strategic timing and resource scale position it well to capitalize on a tightening global tungsten market, but execution risks remain as it advances toward production.
Questions in the middle?
- How will TGN’s upcoming definitive feasibility studies impact project timelines and financing needs?
- What progress will TGN make in securing US offtake agreements and strategic partnerships?
- How might evolving geopolitical tensions and supply chain disruptions affect TGN’s market positioning?
