en.Wedoany.com Reported - ASX-listed Tungsten Mining (ASX: TGN) is operating three advanced tungsten projects in Australia, aiming to capitalize on the growing global demand for diversified tungsten supply. Its flagship asset, Mt Mulgine, holds one of the largest tungsten resources outside of China. The company recently initiated a large-scale drilling program to expand resources, supporting a Pre-Feasibility Study (PFS) in preparation for a subsequent final investment decision. Mt Mulgine is expected to commence initial production in early 2029, while the Watershed project in Queensland targets a faster timeline to production.
Tungsten is a critical metal widely used in military, electronics, aerospace, renewable energy, and advanced manufacturing sectors. The global supply chain is highly concentrated, with China controlling approximately 80% of total output. In February 2025, China imposed export restrictions on tungsten, driving the price of ammonium paratungstate (APT) at the Port of Rotterdam in the European market close to historical highs, around USD 3,000 per metric ton unit, up over 200% since the beginning of the year. Tungsten possesses the highest melting point among all metals, exceptional hardness, and outstanding wear and corrosion resistance. Tungsten Mining Chairman Gary Lyons stated that tungsten is essential for cutting tools, mining equipment, advanced manufacturing, electronics, aerospace, and defense applications, and that substitutes either reduce performance or significantly increase costs.
TGN's three projects collectively hold one of the largest resource inventories outside of China, containing nearly 400,000 tonnes of WO3. Of this, Mt Mulgine contributes 270,000 tonnes, and Watershed adds 76,000 tonnes. The company believes it is at the intersection of three major themes: a structurally tight tungsten market, an urgent need for diversified Western supply, and two large-scale Australian projects. The third project is Hatches Creek in the Northern Territory, an earlier-stage asset that adds optionality to the development pipeline.
A preliminary economic assessment for the Watershed project outlined an 8-year mine life, with the processing plant operating for an additional 7 years, capable of producing 31,350 tonnes of WO3. The study yielded a pre-tax Net Present Value (NPV) of approximately AUD 1.31 billion, a pre-tax Internal Rate of Return (IRR) of 198%, and a payback period of 9 months from first ore. Capital costs are AUD 274 million, unit costs are AUD 594 per metric ton unit, and the life-of-mine operating margin is 56%. The study was modeled based on declining price assumptions. Lyons stated that the base case model assumes APT prices gradually decline from the spot price of approximately USD 3,140 per metric ton unit in May 2026 to a long-term price of USD 1,000 per metric ton unit by June 2030, and that the project valuation remains positive at long-term APT prices well below this assumption. Watershed already holds seven approved mining leases, an environmental authority, and an Indigenous Land Use Agreement. The company expects to make a Final Investment Decision (FID) later this year and plans to commence production in the first half of 2027.
With production imminent, TGN has begun structuring its financing, evaluating options such as traditional project debt, export credit agency support, strategic investment, and offtake prepayments. Lyons stated that the strategic nature of tungsten can open doors typically not available to traditional commodity developers, and that governments, defense-related industries, tungsten processors, and end-users are actively seeking secure supply from outside China. These parties are prepared to support development projects through concessional financing, guarantees, prepayments, strategic equity, or long-term purchase commitments. TGN has initiated discussions with commercial banks, export credit agencies, strategic investors, and potential customers, and has engaged professional advisors to support the financing process.
The longer-term focus is on the Mt Mulgine project. A comprehensive Pre-Feasibility Study (PFS) currently underway builds on a scoping study completed last year, which outlined a 23-year mine life under a 6 million tonnes per annum development scenario. TGN has commenced a 44,700-meter drilling program, including 167 reverse circulation and diamond drill holes, targeting mineralization extensions below the main resource at the Mt Mulgine Trench and exploring an exploration target estimated to contain 165,000 to 240,000 tonnes of WO3 and 30,000 to 36,000 tonnes of molybdenum. Diamond drilling will also collect metallurgical test and geotechnical data to support pit design. Drilling results will be progressively incorporated into the PFS, which is expected to be completed in the second quarter of next year. A final investment decision will then be made, with first production targeted for early 2029.
TGN is also pursuing a secondary listing on the Nasdaq or New York Stock Exchange in the United States to leverage U.S. policies surrounding resource security. Tungsten is classified as a critical mineral in the United States, Australia, the United Kingdom, and the European Union. Lyons believes that the company's Australian tungsten portfolio aligns closely with these strategic priorities, and that a listing on the Nasdaq or NYSE would provide a stronger platform to engage with U.S. government agencies, defense and industrial users, strategic investors, financial institutions, and financing partners, while facilitating access to the world's largest capital market. TGN plans to list in the third quarter of this year.
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