EQ Resources (EQR) has secured five long-term offtake agreements from its tungsten operations in Australia and Spain, all of which span the next two years.
The contracts were signed with leading international tungsten consumers and will see EQR supply approximately 25 per cent of its tungsten production to Europe, 25 per cent to North America, and the remaining balance will be supplied to Asia.
The total value of these agreements is estimated to be $US124 million ($194 million), representing volumes of 470 containers that hold 20 metric tonnes of 50 per cent tungsten trioxide concentrate.
Amid rising tungsten prices and the recent restriction of tungsten product exports by China, EQR’s new offtakes are set to position the company as a leading tungsten supplier.
“EQR’s global operations represent a significant part of the western supply of tungsten concentrate,” EQR chief executive officer Kevin MacNeill said.
“The recent move by China to more closely regulate the export of tungsten products has certainly triggered more interest in locking in volume supply of tungsten raw materials.
“We are pleased that we supply major western producers on a long-term basis, while at the same time exploring ways to add value to our concentrate through the integration of downstream processing capacity.”
EQR’s production forecasts are expected to cover product required to be delivered under these agreements, as well as product required to support operations it will gain under its proposed acquisition of Tungsten Metals Group (TMG), which currently owns and operates the largest ferrotungsten plant outside of China.
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