General News
12 September, 2024
Rosy future for mine
TUNGSTEN from a Mt Carbine mine will play an integral role in global security, with the United States moving to secure a supply of the hard metal for products critical to its defence, aerospace, medical, industrial and semiconductor sectors.
With China and Russia the dominant world suppliers of tungsten, EQ Resources’ Mt Carbine mine and its newly-acquired Spanish mine has become critical to the US, with the US Defense Production Act (Title III), now classifying the raw material coming from Australia as “US domestic sources”.
According to EQ Resources’ operations manager Ryan MacNeill, the move not only strengthens the supply chain, but grants access to substantial US funding programs aimed at bolstering “mission-critical sectors”.
At the same time, EQ Resources, which also owns Wolfram Camp mine near Dimbulah, has entered into a strategic partnership and long-term offtake agreement with Elmet Technologies, the only US-owned and operated tungsten and molybdenum manufacturer. This collaboration is set to redefine the tungsten supply chain.
“This partnership is of profound geopolitical significance, particularly given that neither the US, Canada, nor the United Kingdom currently have operating tungsten mines,” Mr MacNeill said. “This agreement fortifies the strategic supply chain between Australia and the US.”
Mr MacNeill said it ensured resilience in industries “crucial to national security, technological advancement, and sustainable energy development”.
As part of the agreement, Elmet is to purchase EQR tungsten concentrate with an estimated value of $30 million (at current market prices) over a five-year period.
Elmet chief executive officer Peter Anania said the collaboration with EQR would provide its tungsten customers in defence, aerospace, medical, and semiconductor with increased supply-chain resiliency.
“Over the past five years, Elmet and the US Department of Defense have worked together to improve tungsten industrial base resiliency through special government programs,” he said.
“This collaboration with the fastest growing Western tungsten mining group, having active mines in both Australia and Spain, will ensure our ability to support the growing demand for our materials, particularly in the US and Western countries.”
EQR chief executive officer Kevin MacNeill said raw material security had become “a top priority, geopolitically and in many board rooms around the world and investing in sustainable mining in Australia and Spain provides a unique market solution”.
The Mt Carbine operation has been producing tungsten concentrate for the past three years, with around 200 tonnes a month worth around $3.5 million being produced from its open pit.
That equates to around 2500-3500 tonnes of concentrate a year, says Ryan MacNeill, depending on where the ore is being mined from the pit.
“There is about 4-5 years left of open pit mining capability but we want to do the underground (mining development) in parallel because the scoping study showed another 10 years’ worth of tungsten,” he said.
He said the company was also seeking to develop underground operations over the next two years and would also look at how Wolfram Camp could be developed further.
The company will also have access to US grants now that the raw material was classified as “US domestic sources”.
