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EQ Resources strengthens tungsten market position with new offtake contracts

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By Colin Hay - 
EQ Resources ASX EQR tungsten long-term offtake agreements
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EQ Resources (ASX: EQR) has signed five offtake agreements valued at approximately $195 million for production over the next 24 months from its tungsten operations in Australia and Spain.

Pulled together with support from marketing partner Cronimet, EQ Resources has executed the offtake contracts with leading international tungsten consumers.

Following the new agreements, the company will supply approximately 25% of its production into Europe, 25% into North America and the balance into Asia.

Top three producers

EQ Resources chief executive officer Kevin MacNeill said the counterparties are among the top three producers in their respective markets, covering the production of ammonium paratungstate, tungsten oxide and tungsten carbide materials.

“EQR’s global operations represent a significant part of the western supply of tungsten concentrate,” Mr MacNeill said.

“We are pleased that we supply major western producers on a long-term basis while at the same time exploring ways to add value to our concentrate through the integration of downstream processing capacity.”

Ex-Asia consumers

Mr MacNeill said the recent export stoppage of various tungsten products from China made the agreements with North American and European consumers of even greater significance.

“The recent move by China to more closely regulate the export of tungsten products has certainly triggered more interest in locking in volume supply of tungsten raw materials,” he said.

The offtake contracts also come at a time of rising tungsten prices, with Fastmarkets APT Mid Price for the metal up 13% over the past 12 months.

Export ban

China announced supply control measures in mid-February 2025 that ultimately led to a complete halt in the country’s exports of the majority of tungsten products.

“The global demand for tungsten is growing, and on our side, we are fully committed for the next two years at least,” Mr MacNeill said.

No timeline has been announced for when exports from China will resume.