EQ Resources Secures Global Offtake Deals Amid Tightening Tungsten Supply

EQ Resources

Australia's Leading Tungsten Producer Signs 9,400t Supply Contracts Across Asia, North America, and Europe

EQ Resources Expands Global Tungsten Reach

Australian-listed tungsten producer EQ Resources (EQR) has signed five major offtake agreements totaling 9,400 tonnes of 50% grade tungsten concentrate over two years. These deals span key markets, with 50% of the material going to Asia, and the remaining split evenly between North America and Europe.

EQR did not name the buyers but confirmed on 19 March that they are all leading manufacturers in the tungsten industry. These strategic agreements will bolster EQR’s global footprint at a time of mounting supply chain risks.

EQR Adds Value with Ferro-Tungsten Production

This is not EQR’s first offtake success. In September 2024, the company secured a five-year supply contract with Elmet Technologies, a US-based manufacturer. Additionally, EQR acquired Tungsten Metals in November 2024, gaining control of a 4,000 t/yr ferro-tungsten facility. This vertical integration enhances EQR’s ability to deliver processed tungsten alloys directly to customers.

These moves come as China, the world’s largest tungsten supplier, introduced export restrictions in February in response to rising US tariffs. EQR’s ability to secure multi-region supply deals highlights its growing strategic importance outside China’s tungsten ecosystem.

Tungsten Offtake Deal Strengthens EQ Resources’ Role in Tight Western Supply Chains

EQ Resources

Tungsten offtake deal activity is accelerating as Western buyers seek secure supply in a market facing concentrate shortages and sharp price increases. EQ Resources binding agreement with Traxys highlights how tungsten has moved from a niche industrial metal into a strategic supply-chain concern for Europe, North America, and advanced manufacturing sectors.

The Australian producer will sell 3,500 t/yr of tungsten oxide in concentrate to Traxys for five years. Pricing will follow ammonium paratungstate indexes, giving the agreement direct exposure to a market that has rallied sharply over the past year. EQ Resources estimates the deal at A$678mn, or about $479mn.

The tungsten offtake deal also includes a €15mn prepayment that will support refinancing of EQR’s Saloro mining complex in Spain. This matters because European tungsten supply has become increasingly important as buyers face limited concentrate availability and rising concerns over Chinese export restrictions on downstream tungsten products.

Traxys Agreement Supports Saloro Financing and Market Access

The Traxys agreement gives EQ Resources a stronger commercial platform for its tungsten output. Offtake deals are especially important in tight specialty metal markets because they can support financing, improve customer visibility, and reduce marketing risk for producers.

Saloro remains a key asset in this strategy. The Spanish operation gives EQR exposure to European tungsten production at a time when the region is trying to strengthen local and allied supply chains. However, Saloro’s production fell by 13pc year on year in July-September because of declining ore grades, showing that asset optimisation remains critical.

EQR used the quarter to improve ore processing and concentrator plants at Saloro. These upgrades are important because tungsten concentrate supply is not only about mine ownership. It also depends on recovery performance, grade management, processing efficiency, and the ability to deliver consistent concentrate quality into long-term contracts.

Tungsten Price Rally Raises Strategic Value of Concentrate Supply

The tungsten offtake deal comes during an exceptional rally in ammonium paratungstate prices. Super Metal Price assessed tungsten APT at $1,700–1,900/mtu in-warehouse Rotterdam, up by about 390pc from a year earlier. That surge reflects a critical shortage of tungsten concentrates in Europe and tighter availability of downstream tungsten products.

Chinese export restrictions have added pressure to the market. Tungsten is essential for cutting tools, hard metals, defence systems, mining equipment, aerospace components, and high-temperature industrial applications. Any disruption in concentrate or intermediate product availability can quickly affect manufacturing supply chains.

EQR has already built a wider offtake base. The company previously agreed to supply tungsten concentrate to Asian, North American, and European producers, and also signed a five-year offtake deal with US producer Elmet Technologies. The Traxys agreement strengthens that pattern and reinforces EQ Resources’ position as a relevant non-Chinese tungsten supplier.

The Metalnomist Commentary

Tungsten is becoming a clear example of how specialty metals can move from overlooked inputs to strategic bottlenecks. The Traxys-EQR deal shows that secure concentrate access, financing, and processing reliability now matter as much as headline mine capacity.

Australian-EQR and US Elmet Sign Major Tungsten Offtake Agreement

EQ Resources (EQR)

Strengthening Global Supply Chains Amidst Geopolitical Tensions

Australian tungsten producer EQ Resources (EQR) has finalized a significant five-year offtake agreement with US-based Elmet Technologies for tungsten concentrate. The deal, valued at approximately A$30 million ($20.35 million), aims to bolster the global tungsten supply chain by integrating tungsten from Western sources. Under the agreement, Elmet will make an advance payment of A$2 million ($1.36 million) and receive 20 million options at A$0.10 each, expiring in two years.

This agreement comes ahead of the US Department of Defence's 2026 ban on tungsten imports from China, which dominates global tungsten production. EQR plans to ramp up production at its Australian and Spanish mines to address potential shortages caused by this legislation and rising geopolitical tensions. Both EQR and Elmet see this partnership as a strategic move to enhance supply-chain resilience and support the US defense industry.

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.

EQ Resources tungsten output falls in 2Q25 as grades drop

EQ Resources

EQ Resources tungsten output declined in the second quarter on lower feed grades. EQ Resources tungsten output from Mount Carbine fell sharply, while Saloro ran at full capacity. As a result, EQ Resources tungsten output mixed weak Australian volumes with stronger Spanish performance.

Mount Carbine grades weigh on production and throughput

EQR produced 6,983 mtu at Mount Carbine, down 61pc year over year. The mine processed 54,573t of ore, 27pc lower than last year. Feed grade averaged 0.17pc tungsten versus 0.44pc a year earlier. Management continues its expansion to access higher-grade ore bodies. However, the site will still process lower-grade ore during the build-out.

Saloro offsets declines; financing and downstream push

EQR produced 28,203 mtu at Spain’s Saloro mine, up 21pc year over year. The operation ran at nameplate after a 2024 ramp-up. Companywide output reached 35,187 mtu, down 15pc on the year. EQR secured $7.5mn royalty financing from Oaktree to extend Saloro north. The firm also pursues downstream value via Tungsten Metals Group. The planned purchase includes a 4,000 t/yr ferro-tungsten plant in Vietnam. Closing has been delayed since the November 2024 agreement.

The Metalnomist Commentary

Tungsten supply remains tight outside China, so grade recovery at Mount Carbine matters. Stable Saloro output and Oaktree funding help bridge the gap. Downstream alloy capacity, if closed, could hedge price cycles and lift realized margins.