Tungsten offtake deal: EQ Resources and Traxys sign five-year term sheet

EQ Resources

Australia’s tungsten offtake deal between EQ Resources and Traxys sets a new sales anchor for tungsten supply. The companies agreed to sell 3,500 tonnes per year of tungsten oxide in concentrate for five years. As a result, the tungsten offtake deal strengthens long-term marketing visibility for a volatile critical mineral.

The term sheet links pricing to ammonium paratungstate indices. Therefore, the contract aligns revenue with widely watched benchmark movements. Meanwhile, the companies plan to finalise definitive documents in January–March 2026.

Benchmark-linked pricing supports bankability and refinancing

This tungsten offtake deal carries an estimated value of about A$400mn over the term. The parties will still complete due diligence and required approvals before final close. However, binding commercial frameworks often improve financing options for producers and lenders.

Traxys also agreed to open a secured three-year prepayment facility of €15mn. Therefore, EQR can target refinancing tied to its Saloro mining complex. This structure can reduce liquidity pressure while production upgrades take effect.

Saloro operations and prior offtakes show wider tungsten strategy

EQR’s Saloro mining complex reported lower output in July–September due to declining ore grades. The company invested during the quarter in processing and concentrator improvements. As a result, EQR aims to lift future production stability from the existing asset base.

EQR also built a broader customer network through earlier offtakes. In March 2025, it agreed supply commitments across Asia, North America, and Europe. It also signed a separate five-year offtake with Elmet Technologies in September 2024.

The Metalnomist Commentary

Tungsten remains a strategic material for defense and advanced manufacturing supply chains. Therefore, benchmark-linked offtakes can become a competitive advantage during price swings. However, producers still need grade control and processing reliability to fully monetize long-term contracts.