Masan High-Tech Materials (MHTM) has announced the signing of an MoU with EQ Resources and its existing joint venture partner, Cronimet to supply tungsten

EQ Resources (EQR) owns Australia’s only primary tungsten producer, the Mt Carbine Project located near Cairns. The project consists of the Mt Carbine tungsten mine, Mt Carbine processing plant (operated through a joint venture with Cronimet), and a stockpile at Mt Carbine Quarries. While Mt. Carbine is scheduled to start mining operations later in 2023, the Mt Carbine processing plant is operational. EQR and Cronimet are producing a tungsten concentrate from the Mt Carbine Quarries’ low-grade stockpiles. Currently, the plant has a capacity of 750tpy W concentrate, with peak production expected to be in the range of 3-6ktpy tungsten concentrate within the next 12 to 24 months.

The MOU is an expansion of an existing long-term offtake agreement between Cronimet and MHTM. The agreement will see that MHTM is supplied with ~70% of tungsten concentrate produced at Mt Carbine over the next four years. This offtake agreement will ensure that Mt Carbine is well supported for the expansion and further development of the mine. In attendance at the MoU signing was German Parliamentary State Secretary of the Federal Ministry for Economic Affairs and Climate Action, Dr Franziska Brantner, and German Ambassador to Australia, Dr Markus Ederer. Dr Brantner and Dr Ederer’s endorsement of the partnership between EQR, Cronimet, and MHTM is a significant milestone for the Mt Carbine Project. Their endorsement will strengthen the supply and investment position of the project as the West continue to procure tungsten outside of China. EQR recently received A$10M (US$6.7M) from Regal Resources Royalties Fund under the terms of royalty-based fund package for redevelopment of the project.

Project Blue expects the tungsten market to steadily grow over the next ten years with demand for cemented carbides and their applications in the automotive, machining, mining, and oil and gas industries being the main driver. Existing producers will likely be able to satisfy demand for most of the coming decade, but thereafter new sources of supply will be needed. China dominates tungsten supply with ~60% production in any given year over the last decade. Due to tungsten’s importance in so many industries and sectors, Western market participants are constantly looking for alternative tungsten supply. This MOU represents such an important conduit for a diverse supply of tungsten.