Mining Research Notes (I): Tungsten

Jan. 27, 2026 On January 22, Argus assessed the latest Rotterdam price for European ferrotungsten at USD 149–151 per kilogram—a 238% year-on-year increase and a new historical high. This surge stems primarily from reduced tungsten concentrate supply, causing global tungsten mine output to tighten significantly. With no near-term relief in sight, prices are expected to remain under upward pressure for the remainder of 2026. Several internationally listed tungsten mining companies worth watching include: Almonty Industries (NASDAQ: ALM / TSX: AII) Controls the world’s largest tungsten mine outside China—the Sangdong Mine in South Korea. EQ Resources (ASX: EQR) Currently Australia’s largest tungsten producer. By early 2026, its output had already doubled—then doubled again. EQR is now striving to become one of the top three non-Chinese tungsten suppliers globally. Tungsten Mining NL (ASX: TGN)

Elmet Group Secures $450 Million Investment Commitment to Strengthen U.S. Tungsten Processing Chain

Editor’s Note On September 14, 2026, the U.S. Department of Defense announced plans to invest USD 450 million in The Elmet Group via redeemable preferred shares to expand tungsten processing and related manufacturing capabilities. Officially cited supply-chain dependencies include over one hundred defense programs—such as the F-35 fighter jet, Patriot air-defense missile system, Trident submarine-launched ballistic missiles, and nuclear-powered submarines. Funding will focus on mineral feedstock conversion, metal powder and heavy-alloy production, and long-term partnerships with mines in the United States, Australia, and Spain. Its strategic military significance lies in securing the materials-processing segment upon which numerous critical weapon systems depend. Zhibi Open-Source Intelligence has compiled and translated relevant information for readers’ reference. Prioritizing Processing Capacity Expansion The U.S. Department of Defense’s September 14 announcement incorporated this investment into its ‘Industrial Base Analysis and Sustainment’ program, jointly advanced by the Industrial Base Policy Office and the Economic Defense Unit. On the same day, Elmet Group disclosed that the transaction structure calls for an initial drawdown of USD 200 million at closing, followed by phased disbursement of the remaining funds. In return, the U.S. government will receive redeemable preferred shares, warrants exercisable for up to 19.9% of common stock post-transaction, and rights to appoint one independent director and one non-voting board observer. This equity-based instrument links government support directly to corporate capacity expansion. The warrants confer future exercise rights, while funding is disbursed in tranches per agreed terms; the announcement discloses only the investment commitment and transaction framework. 1. Three Facilities: Scaling Up Powder and Heavy-Alloy Output ● Over USD 165 million will fund capacity expansion and infrastructure upgrades at Elmet’s existing facilities in Lewiston, Maine; Coldwater, Michigan; and Elyria, Ohio. The company explicitly noted increased output of tungsten heavy alloys and tungsten powders. These plants also process molybdenum and other advanced materials, with funding covering both material and component manufacturing. 2. Nevada Project: Restoring Intermediate-Product Conversion ● Approximately USD 150 million will support Elmet’s Springer tungsten integrated project in Nevada. Elmet plans to form a majority-owned joint venture with Blue Moon Metals and Australia’s EQ Resources to restore and expand ammonium paratungstate (APT) conversion capacity. U.S. authorities designate this facility as the intended sole independent APT production site in North America. 3. Overseas Partnerships: Securing Raw Materials and Processing Sources ● Elmet also intends to secure upstream supply through investments and long-term off-take agreements linked to Carbine Hill Mine in Australia and Baruecopardo Mine in Spain. It will establish an ‘Elmet Refining & Trading’ division to centrally coordinate procurement, refining, and materials delivery. This upstream strategy spans allied nations, while domestic efforts concentrate on expanding processing and manufacturing capacity. Figure 1: Aerial view of the Springer, Nevada project site. Source: Blue Moon Metals project webpage; the project aims to restore mining operations, concentrator facilities, and APT conversion infrastructure. How Tungsten Fits Into the Weapons Supply Chain Ammonium paratungstate (APT) is a critical intermediate in tungsten refining, subsequently used to produce tungsten oxide, tungsten powder, and ultimately tungsten alloys, billets, and precision components. Mines supply raw ore; chemical conversion determines whether required intermediates can be obtained; and powder metallurgy plus precision machining determine whether materials can be shaped into components meeting exact performance specifications. This investment covers both intermediate conversion and downstream manufacturing—highlighting U.S. recognition of processing bottlenecks as a key vulnerability.

EQ Resources to Take 10% Stake in Nevada Tungsten Project JV with Elmet, Blue Moon

Sep 14, 2026

Australian miner EQ Resources joins a joint venture to restart the Springer tungsten project in Nevada with $75 million in U.S. Department of Defense funding. The agreement secures an eight-year off-take for 4,000 tonnes of tungsten concentrate annually.

reuters

2026-09-14

EQ Resources to Take 10% Stake in Nevada Tungsten Project JV with Elmet, Blue Moon

EQ Resources to Take 10% Stake in Nevada Tungsten Project JV with Elmet, Blue Moon

FAQ