EQ Resources Targets Quadruple Tungsten Output by FY27 Amid Supply Crunch

Production Growth Plans Amid Global Supply Deficit

EQ Resources Limited (ASX:EQR) is positioning itself as a critical Western supplier of tungsten, reporting FY26 production of 1,189 tonnes WO3 with ambitions to more than triple that output to over 3,850 tonnes per annum. The company’s two flagship mines, Mt Carbine in Queensland and Barruecopardo in Spain, form the backbone of this growth strategy amid a tightening global tungsten market dominated by supply restrictions from China and other restricted countries.

Global tungsten markets are in structural deficit, driven by geopolitical tensions and export restrictions from major producers. This deficit has pushed prices higher, with EQ Resources benefiting from long-term spot-priced offtake agreements that integrate its supply into Western industrial and defence supply chains.

Mt Carbine Expansion: Doubling Crushing Capacity

The Mt Carbine operation is undergoing a A$39 million expansion project to double its crushing circuit capacity from around 1 million tonnes per annum to 2 million tonnes, expected to commission in Q3 FY2027. This upgrade aims to increase production capacity by around 500 tonnes WO3 annually from low-grade stockpile ore reserves, with potential upside from additional ore sources including the Wolfram Camp historic mine and adjacent exploration tenements.

Recent operational improvements include accessing a high-grade in-situ ore body at the Iolanthe Vein, boosting feed grade by 375% to 0.262% WO3. The company has also secured water rights to mitigate dry processing risks and commenced a 7,800m drilling program to expand resources. The Mt Carbine district tenure has grown significantly to 1,136 km2 through recent acquisitions, supporting a hub-and-spoke development model around this processing hub. This regional growth is expected to underpin multi-generational asset potential for EQ Resources.

Barruecopardo Optimization and Resource Growth

At Barruecopardo in Spain, EQ Resources has installed key processing equipment that has increased recoveries by over 40%, alongside a 12,200m infill and expansion drilling program underway since May 2026. The mine’s JORC reserves have grown by 39%, with resource and reserve updates expected in Q4 FY27. The company is also planning exploration on eight adjacent tenements to further extend the resource base.

Barruecopardo produced 90,666 mtu (metric tonnes unit, where 1 mtu = 10kg WO3) in FY26, with targeted production exceeding 160,000 mtu per annum. The mine life stands at around nine years based on current reserves, which represent 45% of the total measured and indicated mineral resource.

Strategic Positioning in Stable Jurisdictions

EQ Resources’ assets are located in politically stable regions outside of China, Russia, and North Korea, which collectively produce the majority of global tungsten but face increasing export restrictions. This positioning is critical as tungsten is classified as a critical and strategic mineral by multiple governments including the EU, US, Japan, Korea, and Australia, with allied policy tailwinds supporting supply chain resilience.

The company’s board and management bring extensive tungsten industry expertise, including leadership experience from major global operations and strategic finance backgrounds. EQ Resources also benefits from strategic partnerships and a US$34 million letter of interest from the US EXIM Bank, aligning with the US-Australia Critical Minerals Framework announced in October 2025.

Exploration and Resource Development Pipeline

Beyond current operations, EQ Resources is actively expanding its exploration footprint, particularly around Mt Carbine. Recent acquisitions increased the district’s exploration tenements by 172% to 1,136 km2, including granted mining leases with surface tungsten stockpiles. Exploration drilling is planned to transition to these new tenements following the Wolfram Camp program, which itself hosts an historic foreign resource estimate of approximately 823,000 mtu WO3, though this is not JORC-compliant and awaits verification.

This growing pipeline of exploration and resource development projects underpins EQ Resources’ aspiration to transform Mt Carbine into a multi-generational tungsten hub, complementing its European operations at Barruecopardo.