Mt Carbine Tungsten Mine Expansion Targets Higher Australian Supply

EQ Resources

Mt Carbine tungsten mine operator EQ Resources has approved a A$39mn expansion that will double ore crushing capacity at its Queensland operation. The investment comes as tungsten prices remain elevated following Chinese export controls and stronger global defence demand.

Mt Carbine tungsten mine crushing capacity will increase from 1mn t/yr to 2mn t/yr. EQR expects the project to come online in the January-March quarter of 2027.

Mt Carbine tungsten mine expansion will address the main processing bottleneck at the operation. Additional crushing capacity will allow EQR to process more low-grade stockpiled ore and increase tungsten recovery from material already available at the site.

The company expects the project to add 500 metric tonne units per year of tungsten trioxide output. One mtu represents 10kg of 100% tungsten trioxide content.

Crushing Expansion Unlocks Existing Tungsten Feedstock

Crushing capacity has constrained Mt Carbine’s ability to increase processing volumes. Doubling capacity gives EQR a relatively direct route to higher output without relying entirely on new mine development.

The project will particularly improve access to low-grade stockpiles. This is important because higher tungsten prices can make previously marginal material increasingly economic to process.

EQR plans to fund the expansion through existing cash reserves and expected cash flows from tungsten trioxide sales. The company therefore avoids depending entirely on new external financing for the project.

The economics have improved dramatically as tungsten prices have risen. European ammonium paratungstate prices recently reached around $3,000/mtu, up 590% from a year earlier.

Chinese export controls introduced in February 2025 have been a major driver. Tight Chinese domestic supply and rising defence demand have further strengthened the market.

Tungsten is strategically important because of its hardness, heat resistance and high density. It is used in cutting tools, aerospace components, electronics and defence applications.

Offtake Agreements Secure Routes for Additional Supply

EQR does not expect to rely on a conventional spot market for additional tungsten trioxide output. The company said incremental production will instead move through existing offtake agreements.

Traxys has an agreement covering 3,500 t/yr, while US tungsten manufacturer Elmet Technologies has secured an undisclosed quantity.

EQR has also signed agreements with five undisclosed tungsten manufacturers across Asia, North America and Europe. These contracts cover a combined 9,400t of 50% grade tungsten concentrate over two years.

This diversified offtake structure is strategically significant. Tungsten markets are relatively small and specialised, making long-term customer relationships more important than highly liquid spot trading.

The agreements also connect Australian tungsten production directly with processing and manufacturing customers across several regions. That strengthens Mt Carbine’s role as a non-China tungsten source.

With Chinese export controls increasing procurement risk, western manufacturers are placing greater value on diversified and contractually secured supply. Mt Carbine is positioned to benefit from that shift if EQR completes its expansion on schedule.

The Metalnomist Commentary

Mt Carbine shows how high tungsten prices are making existing stockpiles and brownfield expansions more valuable. EQR’s real strategic advantage is the combination of available feedstock, secured offtake and growing demand for non-China tungsten.