EQ Resources Takes 10% Stake in US Tungsten Restart as Andrew Forrest Builds 16.8% Position

EQ Resources signs binding deal for 10% of Nevada's Springer tungsten project, with Elmet at 70% and Blue Moon at 20%; Forrest buys 16.8% stake.

EQ Resources has locked in a foothold in the American tungsten supply chain, signing a binding agreement with Nasdaq-listed Elmet Group and Blue Moon Metals to revive the long-dormant Springer tungsten complex in Nevada. The Australian producer will hold a 10% interest in the joint venture, with Elmet leading operations at 70% and Blue Moon retaining 20%.

The deal, finalised last Friday, lands squarely inside Washington's push to build domestic sources for critical minerals. Elmet is in line for up to USD 450 million in backing from the US Department of War, a package aimed at loosening China's grip on tungsten supplies for the defence industry. Of that total, USD 150 million is earmarked directly for the Springer transaction, while roughly USD 75 million is tied to restarting the Nevada plant itself.

Production Timeline and Offtake Terms

Under the plan, the mine and its associated mill are scheduled to come back online in the fourth quarter of 2027, with the ammonium paratungstate (APT) facility following in the second half of 2028. The Springer site has sat idle for more than four decades and carries historical resources of 10.7 million tonnes of ore. Once modernised, the plant is designed to churn out 4,000 tonnes per year.

EQ Resources has committed to supplying 4,000 tonnes of tungsten concentrate (WO3) over an eight-year offtake arrangement at market prices — a nominal run rate of about 500 tonnes annually from its existing mining operations. In return, the company secures the right to use 1,000 tonnes of the APT plant's annual capacity during the first five years of production, converting its own concentrate into higher-value downstream material.

The structure caps EQ Resources' financial exposure at approximately USD 3.1 million for the joint venture, provided total project costs stay within the USD 100 million threshold. That modest outlay marks a shift in the company's profile: instead of shipping raw concentrate, it now sits inside the Western tungsten value chain, with a direct line to defence and high-tech end users.

Forrest Moves In as Oaktree Exits

The operational news arrived alongside a notable change on the share register. Wonongarra Pty Ltd, controlled by Andrew Forrest, has picked up a 16.8% stake in EQ Resources, acquiring the holding from Oaktree Capital Management, which had bankrolled the company across various projects since 2023.

Tungsten prices have been the other tailwind. Since the start of 2025, the metal has gained roughly 200% amid a global supply squeeze, with the APT benchmark for Europe and the US quoted between USD 1,080 and USD 1,325 per tonne, according to the Australian Financial Review. China, per industry reports, controls about 83% of mined supply worldwide and an even larger slice of processing capacity — the gap the Springer restart is meant to narrow.

EQ Resources' own numbers reflect the upcycle. July delivered record revenue of about AUD 51 million, split between roughly AUD 39 million from the Barruecopardo mine and AUD 12 million from Mt Carbine. The company continues to push ahead with expansion at Mt Carbine in Australia alongside its new US commitments.

Market Response

Investors greeted the developments warmly. The stock changed hands at AUD 0.4300, up 12% on the day, leaving it just 5.5% shy of its 52-week high. Tuesday's session had already brought a 10% advance to AUD 0.4250, against a 52-week peak of AUD 0.4400. Analysts covering the stock see it reaching AUD 0.51 on consensus.

Final execution of the cooperation still hinges on the completion of definitive contracts, which are expected to be signed in the coming months.