EQ Resources (EQR) has signed five long-term offtake agreements valued at an estimated US$124 million for the next 24 months. These agreements encompass production from its tungsten operations in Australia and Spain. The contracts, facilitated with marketing partner CRONIMET, are with leading international tungsten consumers, specifically top-tier producers of Ammonium Paratungstate (APT), tungsten oxide, and tungsten carbide materials. These products are subject to recent export restrictions from China. EQR will supply approximately 25% of its production into Europe, 25% into North America, and the balance to Asia.
The significance of these agreements, particularly with North American and European consumers, is amplified by China’s export halt on various tungsten products. These commitments also provide certainty regarding sales and revenue, crucial for securing capital from lenders in the critical minerals sector. Each agreement specifies a 50% WO3 concentrate, adhering to EQR’s standard product specification. Pricing is tied to the Fastmarkets APT Price.
These agreements support EQR’s production forecasts and the planned acquisition of Tungsten Metals Group in Vietnam. Each contract includes an advance payment component, expected to be finalized by the end of Q2 CY2025. CEO Kevin MacNeill noted that China’s tighter export regulations have increased interest in securing tungsten raw materials. He also added that EQR is positioned to supply major Western producers long-term, while exploring downstream processing opportunities.
The past year has seen a 13% increase in the Fastmarkets APT Mid Price, accelerated by China’s export controls in February 2025, leading to a halt in tungsten product exports. The global demand for tungsten is growing, fueled by the China export control resulting in great uncertainty for downstream customers. This in turn has led to customers looking to lock in future supply via long-term offtake arrangements.
