EQ Resources Secures EXIM Support for Mt Carbine Tungsten Expansion

EXIM Endorses Mt Carbine Tungsten Project as Critical Mineral Supply Tightens

EQ Resources (ASX: EQR) has received a letter of interest from the Export-Import Bank of the United States (EXIM). This letter signals possible financial support for expanding the Mt Carbine tungsten project in Queensland, Australia. EXIM is considering a 10-year, $34 million debt facility under its Supply Chain Resiliency Initiative (SCRI). The initiative aims to diversify U.S. critical mineral sources and reduce reliance on China.

The Mt Carbine mine, one of Australia’s key tungsten assets, is undergoing significant redevelopment. EQ Resources plans to double production capacity with backing from the Queensland Critical Minerals and Battery Technology Fund. The company has already received and installed key equipment for the plant expansion. The upgraded facility will process low-grade historic stockpiles with higher-grade ore from open-pit and future underground mining.

A 2022 scoping study showed that only 19% of in-situ resources are classified as ore reserves. This leaves strong potential for future conversion of resources to reserves.

Tungsten Designated Critical Mineral by U.S., EU, and Australia

Tungsten is officially listed as a critical mineral by the United States, the European Union, and Australia. The metal plays an essential role in both defense and high-performance industrial applications. The U.S. Department of Defense uses tungsten in armor-piercing projectiles and other dense military components.

In recent months, China’s export restrictions have raised global concerns. These controls have driven tungsten prices to 12-year highs and increased geopolitical risks across supply chains. EXIM’s interest in Mt Carbine supports U.S. strategy to diversify mineral sourcing away from China.

China continues to limit exports of materials like tungsten, graphite, and gallium. EQ Resources, with operations in Australia and Spain, is now positioned as a key alternative supplier. Its dual footprint offers supply chain flexibility for customers in the U.S. and Europe.

Executive chairman Oliver Kleinhempel highlighted the importance of U.S. partnerships. He said EQ Resources is “pleased to work with US EXIM and our US customer base to strengthen resilience in a critical defense- and energy-related supply chain.”

SuperMetalPrice Commentary:

EXIM’s backing marks a major endorsement of Mt Carbine’s value in the global tungsten market. With prices hitting 12-year highs, this expansion strengthens Western supply resilience. Moreover, EQ Resources is well-positioned to lead the non-China tungsten supply shift, especially amid growing geopolitical and resource pressures.