EQ delivers as Chinese tungsten trade tightens

EQ Resources continues to hit new highs in tungsten output at a time when market behemoth China tightens export control for a range of critical minerals. The company's tungsten operations at Mount Carbine in Far North Queensland and Barruecopardo in Spain delivered production improvements throughout September leading to a month-on-month increase of 15 per cent in concentrate output. Quarter-on-quarter, the group recorded a 31 per cent increase, from 41,188 mtu in Q4FY24 to 53,876 mtu in Q1FY25 (1mtu 10kg tungsten trioxide in concentrate). “Production continues to ramp up at Mount Carbine since we re-entered the Andy White open pit in June of last year, while our teams at Barruecopardo have been implementing and installing a capital-lite continuous improvement program since EQR assumed ownership of the mine in January,” EQ Resources chief executive officer Kevin MacNeill said. Related: EQ Resources achieves bumper tungsten results Mr MacNeill said China controlled more than 80 per cent of global tungsten output, and in the past 15 years, the Western world had only brought four tungsten mines into operation – two of them operated by EQ Resources. The company's expanded production coincides with China’s recent update of its export regulations for minerals including tungsten and the US Government's imposition of an additional tariff of 25 per cent on Chinese tungsten products coming into that country. The Mount Carbine tungsten mine. EQ Resources also points to a recent move restricting the US Department of Defense from acquiring tungsten from China and Russia, and prohibiting even earlier inputs in the supply chain from these countries. Analysts suggested that those regulatory escalations, combined with the current low strategic tungsten stockpile held by the US Defense Logistics Agency, inflated the US structural deficit for tungsten, it noted. “We are pleased, and our people are proud to be a growing supplier of metal as critical to the global economy as tungsten," Mr MacNeill said. Related: EQ Resources secures major US offtake deal "There is no doubt that end users in Europe and North America are nervous about supply disruption out of China following the recent announcement that China is further tightening export controls for several critical metals, especially those used in defence and semiconductor applications." He said the company's current production run-rate had already reached a level equivalent to 17 per cent of the last five years’ average monthly tungsten imports into the US – in comparison to the US’ largest import source China with a 27 per cent share. “We are actively pursuing cooperation and funding opportunities not only domestically but also through US and EU agencies," he said. "EQR’s positioning with two operating mines in the Western world is perceived as a unique valueproposition that gains interest from policymakers.”

EQ delivers as Chinese tungsten trade tightens

Industry Queensland

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