EQ Resources sets tungsten production records as US-China trade tensions boost demand
September has again seen EQ Resources (ASX: EQR) achieve new monthly production highs at its two tungsten projects.
The company produced a record 20,721 metric tonne units (mtu) for the month, also establishing new records with 641mtu at Mt Carbine in Queensland and 518mtu at its Barruecopardo mine in Spain.
Chief executive officer Kevin MacNeill said the company’s surging production coincides with China’s tightening of export control measures for tungsten and a range of critical minerals, as well as the US having imposed a 25% tariff on Chinese tungsten products.
Production boost
The September numbers represent an overall 51% increase in tungsten output at the EQR Group level compared to the average monthly output recorded in Q4FY24.
The new record month has been supported by improving ore grades at Mt Carbine and the successful implementation of recovery-enhancing upgrades at Barruecopardo.
“Production continues to ramp up at Mt Carbine since we re-entered the Andy White open pit in June of last year, while our teams at Barruecopardo have been implementing and installing a capital-light continuous improvement program since EQR assumed ownership of the mine in January,” Mr MacNeill said.
Portfolio expansion
The improvements also support the company’s decision to significantly grow its portfolio this year.
EQ Resources completed the acquisition of Saloro S.L.U and Barruecopardo, one of Europe’s leading tungsten-producing mines, in mid-January.
In early July, EQ executed a definitive agreement to acquire CRONIMET’s 50% interest in the Mt Carbine retreatment joint venture, with CRONIMET also agreeing to become the marketing partner for Saloro production.
Matching US needs
EQ’s current production has already reached a level equivalent to 17% of the last five years’ average monthly tungsten imports into the US, within range of the 27% share for the US’s largest import source, China.
“There is no doubt that end users in Europe and North America are nervous about supply disruptions out of China,” Mr MacNeill said.
“China controls more than 80% of global tungsten output and, in the past 15 years, the western world has only brought four tungsten mines into operation—two of which are operated by EQ Resources.”
“EQR’s positioning with two operating mines in the Western world is perceived as a unique value proposition that is gaining interest from policymakers.”
“We are actively pursuing cooperation and funding opportunities not only domestically but also through US and EU agencies.”