Mining magnate Andrew Forrest is taking a $190 million stake in Mount Carbine tungsten producer EQ Resources.

EQ Resources (ASX: EQR) said today that Wonongarra, an investment vehicle wholly owned by Dr Forrest, had agreed to acquire the entire stake owned by funds managed by Oaktree Capital Management – comprising 862,131,779 fully paid ordinary shares and 35,555,556 options, representing about 16.8 per cent of EQR’s issued capital.

“This investment backs an Australian producer, Australian jobs and Australian know-how at the moment the world has woken up to how fragile critical mineral supply chains have become,” Dr Forrest said.

“Tungsten is essential to the machines that build our homes, hospitals, cities and modern-day energy systems, as well as the semiconductors in every phone and computer. Yet global supply is remarkably concentrated.

“We are proud to become a long-term shareholder in a company that is de-risking its operations, ramping up production and beginning to generate real cash flow. We look forward to seeing the business continue to grow.”

EQR managing director Craig Bradshaw thanked Oaktree for its support over the years.

“Oaktree backed our vision at a pivotal time and their partnership has been instrumental in establishing EQR as the leading western tungsten producer,” he said.

“We warmly welcome Dr Forrest’s investment in the company. It is a strong endorsement for EQ Resources to see the ownership baton passed from a financial investor to a stalwart of the Australian mining industry with a proven track record of developing and growing assets.

“This is a great vote of confidence in EQ Resources, our people, and the growth strategy we are executing across our operations in Australia and Spain.”