Mount Carbine tungsten mine owner EQ Resources is backing away from a deal that would have seen it take over a Vietnamese ferrotungsten plant.

The company said today it would not proceed with the acquisition of plant owner Tungsten Metals Group.

“Following thorough engagement with TMG Group throughout 2025 and a careful review of our strategic priorities during the second and third quarters of FY2026, the board has determined that proceeding with the acquisition is not in the best interests of shareholders at this time,” EQ Resources managing director Craig Bradshaw said.

“Our focus remains firmly on growing production from our Mount Carbine and Barruecopardo operations, expanding our resource base, and delivering long-term value from the high-quality assets we already own.”

Related: EQ Resources hitting the drill as tungsten surges

EQ Resources said it would continue to advance the following key strategic priorities:

• Increasing tungsten concentrate production from the Mount Carbine operation in North Queensland and the Barruecopardo mine in Spain;
• Expanding the Company’s resource and reserve base through planned drilling programs at Mount Carbine and Barruecopardo;
• Drilling at the Wolfram Camp EPM during 2026; and
• Progressing the planned expansion of the Mount Carbine crushing circuit.

EQ Resources in late 2024 executed a heads of agreement to acquire 100 per cent of the shares in Tungsten Metal Group (TMG), its subsidiaries and other interests.

The company owns the largest ferrotungsten (FeW) plant outside of China, with a capacity of 4000tpa FeW. 

EQ Resources said at the time that the acquisition would allow it to achieve vertical integration of its upstream operations.

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