EQ Resources Secures Five Year Deal with Elmet Technologies to Strengthen US Tungsten Supply
Australian-based company EQ Resources (EQR) with whom Tungsten Metals Group has entered a Heads of Agreement to be acquired by, has secured a five-year tungsten supply agreement with US-owned and fully integrated tungsten manufacturer Elmet Technologies. The agreement significant milestone in the global push for supply chain resilience in critical metals and underscores the strategic importance of securing reliable tungsten sources for Western markets.
The partnership announced in Q4 of 2024 creates an opportunity for the parties to collaborate on securing US Government funding, with the goal of strengthening the critical materials supply and advancing the downstream integration of EQR's tungsten concentrate into the US tungsten supply chain.
EQR’s Chief Executive Officer, Kevin MacNeill, highlighted the geopolitical and economic significance of this agreement, stating that partnerships like this are vital as nations prioritize the stability of critical mineral supply chains amidst shifting global dynamics.
“The outcomes of the improvement plans are a testament to the dedication of the quality team and management we have in place at the operation,” said MacNeill.
The agreement between EQR and Elmet Technologies involves a $30 million deal aimed at bolstering the US tungsten supply chain. This partnership capitalizes on tungsten sourced from EQR’s operations, including the Mt Carbine mine in New South Wales and the Barruecopardo operation in Spain. By formalizing this collaboration, EQR cements its role as a reliable producer of tungsten concentrate, addressing the global demand for critical mineral security.
1. The Role of EQR’s Mt Carbine and Barruecopardo Operations
EQR’s Mt Carbine mine in New South Wales and Barruecopardo mine in Spain have become key players in supplying high-grade tungsten concentrate. These operations demonstrate consistent production growth and technological advancements:
Mt Carbine Mine:
Located in New South Wales, this mine leverages advanced processing technologies to optimize tungsten recovery, ensuring minimal waste and maximum yield. Its strategic location within Australia positions it as a cornerstone of Western tungsten supply chains.
Barruecopardo Operation:
Situated in Spain, Barruecopardo has recently achieved record-breaking production figures due to significant improvement initiatives. The mine’s ability to meet growing demand while maintaining high efficiency reinforces EQR’s reputation for excellence. Learn more about the Barruecopardo Mining Operation.
These mines not only contribute to the global tungsten market but also strengthen the Western supply chain by reducing dependence on non-Western sources.
2. Geopolitical Implications of Tungsten Supply
The demand for tungsten is intensifying as industries and governments prioritize the procurement of critical minerals for defense, technology, and infrastructure. This agreement aligns with broader initiatives to mitigate vulnerabilities in global supply chains. Key geopolitical factors include:
Critical Mineral Security:
Tungsten is indispensable in defense manufacturing, where its unique properties enhance the performance of weapons systems and aerospace technologies.
Reducing Dependency:
Western nations aim to reduce reliance on tungsten sourced from regions with less stable supply chains. Partnerships like EQR and Elmet’s address this need by fostering reliable Western production.
3. US Government Collaboration: A Pathway to Innovation
EQR and Elmet Technologies have jointly submitted a white paper to the US Defence Industrial Base Consortium grant program, which is open to industry partners from allied nations, including Australia, Canada, and the UK. This initiative aims to secure funding for advanced research and integration projects that strengthen the tungsten supply chain. Pending approval, this program could further cement EQR’s role in delivering innovative solutions for critical mineral supply challenges.
4. Driving Sustainability and Efficiency in Tungsten Production
EQR’s commitment to innovation and sustainability is evident through its continual investments in production improvements. At the Barruecopardo operation, recent upgrades have led to record-breaking recovery rates, underscoring the mine’s efficiency. These achievements reflect EQR’s dedication to aligning with global sustainability goals while meeting market demands.
Ultimately, the partnership between EQ Resources and Elmet Technologies sets a precedent for collaborative approaches to securing critical mineral supply chains. By leveraging high-quality tungsten production at Mt Carbine and Barruecopardo, EQR positions itself as a pivotal player in addressing global tungsten demand.