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| EQ Resources (EQR) |
Strengthening Global Supply Chains Amidst Geopolitical Tensions
Australian tungsten producer EQ Resources (EQR) has finalized a significant five-year offtake agreement with US-based Elmet Technologies for tungsten concentrate. The deal, valued at approximately A$30 million ($20.35 million), aims to bolster the global tungsten supply chain by integrating tungsten from Western sources. Under the agreement, Elmet will make an advance payment of A$2 million ($1.36 million) and receive 20 million options at A$0.10 each, expiring in two years.
This agreement comes ahead of the US Department of Defence's 2026 ban on tungsten imports from China, which dominates global tungsten production. EQR plans to ramp up production at its Australian and Spanish mines to address potential shortages caused by this legislation and rising geopolitical tensions. Both EQR and Elmet see this partnership as a strategic move to enhance supply-chain resilience and support the US defense industry.
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