Australia's EQ Resources Limited takes over Tungsten Metals Group Limited

EQ Resources Ltd is a global tungsten producer with mining activities in Australia and Spain. Meanwhile, TMG Group is the owner and operator of the largest and most advanced ferrotungsten (FeW) plant outside of China, with the potential to produce 4,000 tonnes per annumof FeW. The facility is located in Haiphong, and was built in 2011.

Australia's EQ Resources Limited takes over Tungsten Metals Group Limited. Photo: TMG

The facility has mainly operated as a toll treatment facility for third-party customers, converting primary and secondary tungsten raw materials into high-quality FeW. Due to its scale and favourable cost structure in Vietnam, particularly concerning electricity usage and cost of labour, the facility is regarded as one of the most competitive in the industry.

Per the terms of the agreement, EQR has determined that the enterprise value of TMG Group is A$13.5 million ($8.8 million). The deal is subject to customary due diligence procedures and shareholder approval, and is expected to be completed in the first half of 2025.

EQR’s CEO, Kevin MacNeill, said, “EQR is pleased to announce the execution of a 100 per cent acquisition of TMG Group. This transaction aligns with EQR’s strategic initiatives to be the pre-eminent western tungsten producer. Upon completion of the transaction, EQR will have achieved a strategic diversification of products, customers and geography, and be the proud 100 per cent owner and operator of critical western tungsten operations on three continents. Additionally, EQR will have achieved vertical integration of our upstream operations, leveraging our substantial resource base and existing production output, throughout the tungsten supply chain.”

TMG’s executive chair, Tony Adcock, said, "Bringing together TMG Group’s advanced ferro tungsten plant in Vietnam with EQR’s high quality upstream operations represents a compelling investment case for all shareholders. The TMG board believes there are significant synergies that can be realised following this potential transaction, with the enlarged EQR positioned very well to benefit from the tailwinds in the tungsten and ferro tungsten markets globally.”

The facilities production capacity represents more than 80 per cent of the FeW capacity installed outside of China and Russia. The main markets for FeW outside of China are Europe, Japan, South Korea, and the Americas, with a combined annual consumption of 5,000 tonnes. FeW is primarily used as an alloying agent for specialty alloys, with the defence, aerospace, and automotive industries key end markets for the product.

Tungsten is one of the metals classified in the US Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act as a rare earth metal not able to be sourced from China for US armaments after 2026.

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