Tungsten Mining’s Mt Mulgine Study Unveils Billion-Dollar Critical Minerals Opportunity
Tungsten Mining NL’s latest scoping study confirms Mt Mulgine as a globally significant critical minerals project with strong financial prospects and strategic positioning amid tightening tungsten supply.
- Mt Mulgine project hosts one of the largest tungsten deposits outside China
- Scoping study projects NPV of A$1.0–2.3 billion and IRR of 30–62% pre-tax
- Initial development capital estimated between A$358–495 million
- Potential staged production ramp-up from 6 Mtpa to 15 Mtpa over 23 years
- Robust operating costs and low strip ratio underpin competitive economics
A Globally Significant Critical Minerals Asset
Tungsten Mining NL (ASX, TGN) has released a comprehensive scoping study for its flagship Mt Mulgine Project in Western Australia, positioning it as a major player in the critical minerals sector. The study highlights Mt Mulgine’s status as one of the largest tungsten deposits outside China, a country that currently dominates global tungsten supply but is increasingly restricting exports. This geopolitical backdrop underlines the strategic importance of Mt Mulgine’s polymetallic resources, which include tungsten, molybdenum, copper, gold, and silver.
Robust Financial Metrics and Development Strategy
The scoping study outlines a staged development plan starting with a 6 million tonnes per annum (Mtpa) operation, with potential to ramp up to 15 Mtpa. Financially, the project forecasts a pre-tax net present value (NPV) ranging from A$1.0 billion to A$2.3 billion and an internal rate of return (IRR) between 30% and 62%, depending on production scale and commodity prices. Capital expenditure for initial development is estimated between A$358 million and A$495 million, reflecting a relatively modest upfront investment for a project of this scale.
Competitive Operating Costs and Low Strip Ratio
Mt Mulgine benefits from a low average strip ratio of 0.8, 1 and operating costs estimated between A$21.6 and A$30.8 per tonne of ore, supported by a conventional low-cost processing flowsheet. These factors contribute to a competitive cost profile that enhances the project’s resilience to commodity price fluctuations. The project’s location in Western Australia, a politically stable and mining-friendly jurisdiction, further de-risks the development outlook.
Strategic Market Position Amid Supply Constraints
The tungsten market is experiencing tightening supply due to China’s export restrictions and declining output, driving prices to all-time highs. Tungsten Mining’s Mt Mulgine project is well positioned to capitalize on this supply deficit, offering a secure and ESG-compliant source of critical minerals. The company’s resource inventory, including additional projects Watershed and Hatches Creek, provides a strong platform for growth and diversification.
Pathway to Production and Upcoming Milestones
The company plans to advance Mt Mulgine through pre-feasibility and definitive feasibility studies over the next two years, targeting a final investment decision by late 2027 and first production by the third quarter of 2029. Key upcoming catalysts include the commencement of the pre-feasibility study in Q4 2025 and ongoing resource expansion drilling. Funding strategies may involve strategic partnerships, offtake agreements, and potential government incentives, although securing capital remains a critical hurdle.
Bottom Line?
Mt Mulgine’s promising economics and strategic timing position Tungsten Mining to play a pivotal role in the global critical minerals supply chain; provided it navigates funding and market risks successfully.
Questions in the middle?
- How will Tungsten Mining secure the A$358–495 million needed for initial development?
- What impact will fluctuating tungsten and molybdenum prices have on project viability?
- Can the company convert exploration targets into additional mineral resources to extend mine life?
