en.Wedoany.com Reported - Mining magnate Dr Andrew Forrest has acquired a 16.8% stake in ASX-listed tungsten producer EQ Resources (ASX:EQR) from private equity firm Oaktree Capital Management in a A$190 million deal. Following the announcement, EQ Resources' shares rose 34% on Monday, with a cumulative increase of over 600% over the past year.
China dominates the global tungsten market, accounting for over 80% of global production, posing supply risks to Western economies. Early last year, Beijing imposed export restrictions on tungsten, driving prices outside China to historic highs and prompting Western nations to accelerate efforts to secure alternative supply channels. Tungsten is classified as a critical strategic metal by the EU, US, Japan, South Korea, and Australia. Its hardness, density, and heat resistance make it irreplaceable in cutting tools, wear-resistant components, aerospace, industrial furnaces, radiation shielding, medical devices, and electronics. Additionally, tungsten hexafluoride is a key material for depositing ultra-thin films in advanced chip manufacturing, extending tungsten's strategic importance to the semiconductor supply chain.
Forrest noted in announcing the investment that global critical mineral supply chains are becoming highly fragile, and this investment aims to support Australian producers, jobs, and technology. With the Mt Carbine mine in Queensland and the Barruecopardo operation in Spain, EQ Resources is one of the few Western tungsten producers. In fiscal year 2026, the company produced approximately 1,200 tonnes of WO3, with a long-term target to increase annual output to over 3,850 tonnes. Global tungsten production in 2025 totaled about 85,000 tonnes.
China's export controls are reshaping the global tungsten market, creating two distinct pricing environments. The non-China APT (ammonium paratungstate) benchmark price in Rotterdam is currently near a historic high of approximately US$3,200 per metric ton unit, having risen about eightfold over the past 18 months. Mike Henshaw, portfolio manager at PURE Asset Management, stated that tungsten is a small market but irreplaceable in many large industries, and China's export controls could severely disrupt Western supply chains. He explained that the impact is currently limited to price increases, with no significant decline in downstream production yet, but if Western supply does not accelerate or China resumes exports, shortages will eventually affect output. Henshaw believes that due to the price insensitivity of defense and semiconductor users, high prices may become the new normal until Western supply expands significantly, which will still take years.
Tungsten Mining (ASX:TGN) and Tivan (ASX:TVN) may also benefit from growing demand for non-Chinese tungsten supply. Tungsten Mining Chairman Gary Lyons stated that Forrest's investment validates the market's recognition of the urgency of non-Chinese supply security and demonstrates that fast, credible operations in secure jurisdictions can attract serious long-term strategic capital. Lyons emphasized that the deal sends a clear signal that sophisticated investors recognize tungsten's core role in advanced manufacturing, mining, aerospace, electronics, and defense.
Tungsten Mining's Australian projects collectively hold one of the largest resource inventories outside China, nearly 400,000 tonnes of WO3. In Queensland, the company is targeting near-term production at its Watershed project, which has total resources of 76,000 tonnes of WO3, with approved mining leases and environmental authorization. The Mt Mulgine asset in Western Australia provides long-term scale, with resources of approximately 270,000 tonnes of WO3. A recently initiated drilling program aims to further expand this resource, with first production expected in early 2029.
Group 6 Metals (ASX:G6M) operates the Dolphin tungsten mine in Tasmania, with total reserves of 4.43 million tonnes at a grade of 0.92% WO3, a very high grade. In the June quarter, the mine achieved a record quarterly throughput of approximately 78,000 tonnes, producing about 213 tonnes of WO3, helping generate operating cash flow of around A$40 million, up from A$13.2 million in the previous quarter. Group 6 is currently transitioning from open-pit to underground mining, with higher-grade underground ore expected to improve feed grade, recovery rates, and tungsten output.
Tivan has signed a memorandum of understanding with Sumitomo Corporation to form a joint venture for the development, financing, and operation of its Molyhil tungsten project in the Northern Territory. Molyhil has total resources of 4.65 million tonnes at 0.26% WO3, containing 12,100 tonnes of metal. A recent scoping study estimated a pre-tax net present value of A$534 million, an internal rate of return of 114%, and a payback period of 1.1 years under the base case scenario.
Apollo Minerals (ASX:AON) has received local authority support for its Couflens project in France, allowing exploration around the historically producing Salau mine. The company stated that France's SMA operated the mine from April 1971 to November 1986, reportedly producing approximately 930,000 tonnes of ore at an average grade of 1.5% WO3, yielding about 13,950 tonnes of WO3 in concentrate. Tribeca-backed Apollo said historical drilling data for the unmined Veronique zone also shows similar grades.
Many ASX-listed exploration companies are also beginning to explore small mines that once operated in the United States. These mines previously received substantial funding through ties with the US military, but the last one closed in 2015 amid post-Cold War industry contraction. With downstream processors facing high export prices, an accelerating AI race, and rapid ammunition consumption, the Trump administration is reportedly motivated to fund new mines domestically and in allied nations.
