Tungsten Mining NL advances its Mt Mulgine project with a robust scoping study, revealing a globally significant multi-critical mineral deposit poised to meet soaring tungsten demand amid supply constraints.
- Mt Mulgine ranks among the largest tungsten deposits outside China
- Scoping study shows 23-year mine life with low operating costs
- Polymetallic resource includes tungsten, molybdenum, copper, gold, and silver
- Potential project valuation uplift with spot commodity prices
- Upcoming milestones include DFS, resource expansion, and strategic partnerships
A Globally Significant Critical Minerals Asset
Tungsten Mining NL (ASX, TGN) has delivered a comprehensive update on its flagship Mt Mulgine project in Western Australia, positioning it as a critical piece in the global minerals puzzle. The company’s recent scoping study highlights Mt Mulgine as one of the largest tungsten deposits outside China, with a polymetallic resource that also includes molybdenum, copper, gold, and silver. This diverse mineral mix underpins the project's strategic importance amid tightening global supply chains for critical minerals.
Located 330 kilometres north-northeast of Perth, Mt Mulgine benefits from proximity to established infrastructure and a politically stable jurisdiction, factors that enhance its investment appeal. The project’s 23-year mine life at a 6 million tonnes per annum (Mtpa) start-up rate, combined with a low strip ratio and competitive operating costs, paints a picture of a long-life, low-cost, high-value operation.
Robust Economics and Market Tailwinds
The scoping study reveals an attractive pre-tax net present value (NPV) of A$1 billion at conservative commodity prices, with internal rates of return (IRR) signalling solid profitability. Notably, the analysis was conducted below current spot prices, which have surged dramatically following China’s 2025 export restrictions on tungsten. At spot prices, the project’s valuation could more than double, highlighting significant upside potential.
Tungsten’s market dynamics are compelling. With China controlling approximately 80% of global tungsten supply and recent export curbs exacerbating supply deficits, demand is expected to grow strongly, driven by sectors such as defence, technology, and renewable energy. Tungsten Mining’s Mt Mulgine and its nearby Watershed project in Queensland are well placed to capitalise on these geopolitical and market shifts.
Strategic Development and Exploration Plans
Beyond the scoping study, Tungsten Mining is advancing towards a definitive feasibility study (DFS) scheduled for completion by late 2027, with a final investment decision anticipated shortly thereafter. The company plans to expand its resource base through targeted drilling, aiming to convert exploration targets into indicated resources and potentially extend mine life and production capacity.
Infrastructure plans leverage existing regional assets, with reliable onsite power supported by gas-fired and renewable sources, accessible transport routes to Geraldton Port, and a skilled local workforce. The company is also exploring downstream processing opportunities and strategic partnerships to enhance project value and secure offtake agreements.
Positioning Amid Peers and Market Challenges
When benchmarked against peers, Tungsten Mining’s valuation metrics suggest significant value uplift potential, particularly given the scale and grade of its resource inventory. The company’s focus on de-risking through extensive drilling and metallurgical testing, combined with a clear pathway to production, distinguishes it in a market where supply constraints and geopolitical risks are driving investor interest.
However, the project remains subject to typical mining risks, including funding availability, commodity price volatility, and regulatory approvals. Tungsten Mining’s transparent communication and staged development approach aim to mitigate these uncertainties while capitalising on the strong market fundamentals for tungsten and associated critical minerals.
Bottom Line?
As tungsten prices soar and supply tightens, Tungsten Mining’s Mt Mulgine stands ready to become a cornerstone of critical minerals supply, next steps will be crucial.
Questions in the middle?
- How will Tungsten Mining secure the substantial funding required for Mt Mulgine’s development?
- What impact will evolving commodity prices have on the project’s final investment decision?
- Can exploration efforts significantly expand the resource base and extend mine life?