Mt Mulgine PFS Confirms World’s Largest, Lowest-Cost Tungsten Project

Mt Mulgine Set to Lead Global Tungsten Supply

Tungsten Mining NL (ASX:TGN) has unveiled a Pre-Feasibility Study (PFS) for its 100%-owned Mt Mulgine Tungsten Project in Western Australia, confirming it as a potential world leader in tungsten production. The study outlines an 8 million tonnes per annum (Mtpa) operation with a mine life stretching over 21 years, underpinned by a pre-tax net present value (NPV8) of A$6.8 billion and an internal rate of return (IRR) of 55%. First production is targeted for the second quarter of 2029, marking a significant milestone for the company and the tungsten sector.

Economics and Scale Drive Competitive Edge

The Mt Mulgine project boasts an initial capital cost of A$870 million, with operating costs positioned to deliver an all-in sustaining cost (AISC) of just US$127 per metric tonne unit (mtu) of WO3, net of by-product credits. This places Mt Mulgine at the lowest cost tier globally, well below producing assets that range from US$180 to US$425 per mtu. The project’s scale and cost efficiency stem from its large, continuous mineral resource and a processing plant designed by Worley for 8 Mtpa throughput, with infrastructure pre-sized to support a potential ramp-up to 16 Mtpa.

Expansion Scenario Enhances Value

Beyond the base case, the PFS considers an expansion scenario that doubles throughput to 16 Mtpa over a 24-month ramp-up starting in 2034. This expansion, requiring an additional A$420 million in capital funded from operating cash flow, boosts the pre-tax NPV8 to A$8.2 billion and IRR to 57%, with operating margins improving to 78%. The higher throughput accelerates mine depletion to 2041, bringing forward cash flows and enhancing project flexibility.

Robust Market Fundamentals Support Project Outlook

Fastmarkets’ market analysis underpins the PFS pricing assumptions, highlighting a structurally undersupplied tungsten market driven by Chinese export restrictions and growing global demand, particularly from defence and manufacturing sectors. Tungsten prices have held firm around US$3,000 per mtu, with forecasts maintaining elevated levels through to 2035. This supply-demand imbalance, coupled with Mt Mulgine’s low-cost profile, positions Tungsten Mining to capture significant market share as global inventories tighten.

Comprehensive Technical and Environmental Planning

The PFS delivers a detailed mine design featuring a conventional open-pit method with a strip ratio of 0.9:1, supported by a robust ore reserve of 144 million tonnes at 0.10% WO3, classified entirely as probable. Metallurgical testwork confirms recoveries of 70% for tungsten and 65% for molybdenum, with a flowsheet integrating gravity and flotation circuits to produce separate concentrates. Environmental management plans include a dry stack tailings facility and encapsulation of potentially acid-forming waste rock, with staged approvals progressing to support construction and operation.

Funding and Next Steps

Tungsten Mining anticipates financing Mt Mulgine through a mix of debt and equity, with discussions ongoing with strategic partners and financiers. The company plans to commence a Definitive Feasibility Study (DFS) in September 2026, aiming for a Final Investment Decision by Q1 2028. Key near-term priorities include awarding DFS contracts, completing metallurgical testwork, advancing water exploration, and progressing environmental approvals.