EQ Resources Greenlights A$39m Mt Carbine Expansion to Double Processing Capacity

Mt Carbine Expansion Targets Production Growth in Strong Price Environment

EQ Resources Ltd (ASX:EQR) has taken a decisive step to boost its tungsten output with board approval of a A$39 million expansion project at its Mt Carbine mine in Far North Queensland. The upgrade aims to double the crushing capacity from approximately 1 million tonnes per annum (mtpa) to 2 mtpa, addressing the current processing bottleneck and positioning the operation to capitalise on a robust tungsten price cycle.

The expansion is expected to add an initial 500 tonnes of tungsten trioxide (WO3) production per year, primarily by processing the low-grade stockpile. Additional upside could come from converting existing resources to reserves and tapping into exploration opportunities at Wolfram Camp and other regional deposits, aligning with EQR’s broader strategy to establish a regional tungsten hub.

Automation and Efficiency Central to Cost Control

Beyond capacity, the project focuses heavily on automation and integration of the crushing, screening, ore sorting, and product crushing circuits. By streamlining materials handling, the new system will reduce physical handling by a factor of eight, cutting the need for mobile equipment and diesel consumption. This is expected to lower operating costs per tonne processed, enhancing the mine’s resilience against commodity price volatility.

The revamped plant will integrate ore bins, stockpiles, and reclaim tunnels into a seamless flow, improving throughput efficiency. This upgrade not only supports near-term production growth but also strengthens Mt Carbine’s standing as a cost-competitive tungsten producer within EQR’s Western tungsten supply platform across Australia and Spain.

Phased Execution Aligned with Cash Flow and Market Conditions

Detailed engineering recommenced in December 2025, leading to a refined capital estimate and project redesign. Execution is planned in stages from June 2026 through to early 2027, with full commissioning and performance testing targeted for March 2027. The phased approach aims to minimise disruption to ongoing operations while maintaining safety and environmental standards.

The project will be funded through a combination of current cash reserves and expected cash flows from ramped-up production, reflecting confidence in the mine’s near-term cash generation amid a record tungsten price environment. This financial strategy avoids immediate capital raising, instead leveraging operational momentum.

Strategic Positioning as a Regional Tungsten Hub

Mt Carbine’s capacity expansion dovetails with EQR’s recent drilling campaigns designed to convert resources to reserves and identify higher-grade ore zones. The company envisions Mt Carbine as a central processing hub within a regional tungsten basin, utilising existing infrastructure and expertise to support growth opportunities at Wolfram Camp and beyond. This hub-and-spoke model could enhance feed flexibility and extend mine life.

Managing Director Craig Bradshaw emphasised the project’s role in solidifying Mt Carbine’s strategic importance and resilience: “This Project is an important step in solidifying the position of Mt Carbine as a strong, resilient and strategically important tungsten producer.”

Execution discipline and safe delivery remain key priorities as EQR seeks to maintain production momentum and build its Western tungsten platform.