Key facts
- EQ Resources will take a 10% stake in a US tungsten processing joint venture.
- The venture aims to restart the Springer ammonium paratungstate (APT) plant in Nevada.
- The deal is part of US efforts to rebuild domestic supply chains for tungsten.
- China's export controls on tungsten are a key driver for the initiative.
- EQ Resources will supply 4,000 tonnes of tungsten concentrate over eight years.
- The Springer complex includes historical mines, a mill, and an APT plant.
Australian tungsten miner EQ Resources is set to become a key partner in a U.S. government-backed initiative to revive a mothballed tungsten processing plant in Nevada. The move aims to bolster domestic supply chains for the critical metal, which is essential for defense, renewable energy, and artificial intelligence sectors, and is currently facing supply constraints due to Chinese export controls.
Under a binding letter agreement, EQ Resources will acquire a 10% stake in a joint venture to restart the Springer ammonium paratungstate (APT) plant. The Elmet Group will hold a 70% stake and operate the facility, while Blue Moon Metals will own 20% and retain ownership of the Springer mine and mill. The total investment package for the Springer Tungsten Complex is estimated between $150 million and $175 million.
EQ Resources has committed to supplying 4,000 tonnes of contained tungsten trioxide (WO₃) in concentrate over eight years from the plant's commissioning. Initially, 25% of the plant's input capacity, capped at 1,000 tonnes annually, will be allocated to EQ Resources' concentrate for the first five years. This allocation will decrease to 10% thereafter. The company is also conducting preliminary ore-sorting test work at Springer.
Elmet's involvement is part of a broader initiative supported by the US Department of War, with $150 million of a $450 million government investment designated for the Springer transactions. The Springer complex, which has historical mineral resources, includes open pit and underground mines, a mill, and an APT plant designed for an annual output of up to 4,000 tonnes. Blue Moon is targeting a mine and mill restart in the December 2027 quarter, with the APT plant to follow in the second half of 2028. The transactions are subject to due diligence, definitive agreements, and regulatory approvals.