Tungsten Mining Faces Funding and Approval Hurdles Despite Strong Market Momentum
Tungsten Mining NL reports a robust December quarter marked by soaring tungsten prices, a landmark scoping study at Mt Mulgine, and a $53 million capital raise, positioning the company for accelerated development.
- Tungsten APT prices up 86% since October 2025, 300% over 12 months
- Mt Mulgine Scoping Study reveals pre-tax NPV of A$1.0-1.4 billion and IRR of 30-45%
- New Exploration Target at Mulgine Trench could significantly expand tungsten and molybdenum resources
- Successful $53 million placement to institutional and professional investors
- OTCQB listing completed, strengthening US market presence
A Surge in Tungsten Prices Fuels Momentum
Tungsten Mining NL (ASX – TGN) has reported a dynamic December 2025 quarter, driven by a remarkable surge in tungsten prices. The price of ammonium paratungstate (APT), a key tungsten product, has climbed 86% since October 2025 and approximately 300% over the past year, reaching US$1,202.50 per metric tonne unit (MTU) by late January 2026. This price escalation is largely attributed to China's export restrictions and supply constraints, underscoring the strategic importance of Tungsten Mining's resource portfolio.
Mt Mulgine Project – A Global Critical Minerals Contender
The company completed an integrated Scoping Study for its flagship Mt Mulgine Project in Western Australia, revealing robust economics with a pre-tax net present value (NPV) between A$1.0 billion and A$1.4 billion and an internal rate of return (IRR) ranging from 30% to 45%. These figures are based on a 6 million tonnes per annum throughput scenario, with potential upside at higher production rates and current spot prices. The study confirms Mt Mulgine’s potential as a long-life, multi-commodity mine producing tungsten, molybdenum, gold, silver, and copper.
Expanding the Resource Base with New Exploration Targets
A recent review of drilling at the Mulgine Trench has defined an Exploration Target of 165 to 200 million tonnes grading 0.10% to 0.12% tungsten trioxide (WO3), with additional molybdenum and gold credits. This target is in addition to the 2020 Mineral Resource Estimate and, if confirmed, could elevate Mulgine Trench to one of the largest tungsten assets outside China. The company also released a Mineral Resource Estimate for gold at nearby prospects, further diversifying its resource base.
Advancing Project Approvals and Development
Tungsten Mining is progressing environmental and mining approvals for Mt Mulgine and its other projects, including Hatches Creek in the Northern Territory and Watershed in Queensland. The company has submitted key permits and engaged extensively with regulators and local stakeholders, laying the groundwork for an accelerated development timeline. The Pre-Feasibility Study (PFS) for Mt Mulgine is already underway, with a Definitive Feasibility Study (DFS) planned for 2027.
Corporate Strengthening and Capital Raising
On the corporate front, Tungsten Mining successfully completed a $53 million placement priced at $0.19 per share, attracting strong demand from institutional and professional investors both in Australia and internationally. This follows a prior $9.5 million placement completed in late 2025. The company also finalized its listing on the U.S. OTCQB market, enhancing its profile among American investors. Key appointments in metallurgy, project management, and environmental, social, and governance (ESG) roles have bolstered the management team.
Financial Position and Outlook
As of 31 December 2025, Tungsten Mining held $7.656 million in cash, supporting ongoing exploration and development activities. The company reported exploration and evaluation expenditure of $0.787 million during the quarter, focused primarily on Mt Mulgine. With tungsten prices at historic highs and a strong capital base, Tungsten Mining is well-positioned to advance its projects towards production, capitalizing on tightening global supply and rising demand for critical minerals.
Bottom Line?
With tungsten prices climbing and a substantial capital injection secured, Tungsten Mining is poised to accelerate Mt Mulgine’s development, but upcoming feasibility milestones and regulatory approvals will be critical to watch.
Questions in the middle?
- Will further drilling confirm the new Exploration Target and expand Mt Mulgine’s resource base?
- How will Tungsten Mining navigate funding and execution risks for the large-scale Mt Mulgine development?
- What impact will ongoing geopolitical tensions and supply constraints have on tungsten demand and pricing?
