Elmet Group Boosts Stake in EQ Resources to Cement Tungsten Supply Chain Ties
The Elmet Group has exercised its option to acquire 20 million shares in EQ Resources, lifting its stake to over 23.6 million shares and reinforcing a strategic partnership that aligns mining and manufacturing in the Western tungsten supply chain.
- Elmet acquires 20 million additional EQR shares
- Stake in EQ Resources rises to 23.65 million shares
- Investment follows long-term tungsten offtake agreement
- Partnership strengthens Western tungsten supply security
- Links EQR’s mining with Elmet’s manufacturing capabilities
Elmet Group Deepens Investment in EQ Resources
The Elmet Group Co., a US-based precision components and advanced systems provider, has exercised an option to purchase 20 million ordinary shares in EQ Resources Ltd (ASX:EQR), significantly increasing its holding to 23,652,634 shares. This move underlines Elmet’s commitment to securing a reliable tungsten supply chain from EQR’s mining operations in Australia and Spain.
Strategic Collaboration Anchored by Offtake Agreement
This share acquisition follows a strategic collaboration and a long-term offtake agreement signed in September 2024, under which Elmet committed to purchasing tungsten concentrate from EQR’s Barruecopardo mine in Spain over a renewable five-year period. The partnership aims to create a secure, traceable Western tungsten supply chain by integrating EQR’s upstream mining and processing with Elmet’s downstream manufacturing expertise.
Strengthening Western Supply Chains Amid Global Tensions
EQ Resources Managing Director Craig Bradshaw described the increased investment as a "strong endorsement" of EQR’s role in the Western tungsten market. He highlighted the synergy between EQR’s mining platforms at Barruecopardo and Mt Carbine in Australia and Elmet’s US-based manufacturing capabilities, which together support critical sectors including aerospace, defence, and energy.
Positioning for Growth in a Tightening Market
With tungsten supply chains under pressure globally, this partnership positions EQR to capitalise on rising demand for ethically sourced critical minerals. The company is concurrently advancing expansions and resource upgrades at its Mt Carbine operation, including a recently approved A$39 million project to double processing capacity, reflecting a broader growth strategy in response to sustained strong tungsten prices.
Awaiting Complementary Disclosure from Elmet
Elmet Group Co. is expected to issue a separate announcement detailing its perspective on the transaction. Both companies have coordinated the timing of their disclosures, though each will address their specific shareholder contexts and strategic rationale independently.
Bottom Line?
Elmet’s increased stake solidifies a key supply chain partnership that could underpin EQ Resources’ growth amid tightening tungsten markets.
Questions in the middle?
- How will Elmet’s increased shareholding influence EQ Resources’ operational priorities?
- What details will Elmet reveal in its forthcoming announcement about the strategic partnership?
- Can EQ Resources’ expansions at Mt Carbine keep pace with rising tungsten demand?
