EQR acquisition: major milestone for western critical minerals

VIETNAM — EQ Resources (EQR) (ASX: EQR) is set to acquire the Tungsten Metals Group (TMG), including Asia Tungsten Products, giving EQR 100% ownership of the largest ferrotungsten plant outside China.

The facility is in V?nh B?o, Haiphong Province, Vietnam, and was built in 2011.

In recent years the facility has mainly operated as a toll treatment facility for third-party customers, converting primary and secondary tungsten raw materials into high-quality ferrotungsten.

The facility boasts a potential production capacity of 4,000tpa. Due to its scale and favourable cost structure, it is regarded as one of the most competitive in the industry.

Tungsten is recognised by Australia as a critical mineral and by the EU and U.S. as a critical and strategic material essential for defence, renewable energy, semiconductors and aerospace industries.

EQR’s acquisition aligns with national priorities to secure the supply of critical raw materials, reducing reliance on China, which currently dominates over 80% of global tungsten supply.

EQR chief executive Kevin MacNeill says the company is pleased to announce the execution of a Heads of Agreement for the 100% acquisition of the TMG Group.

“This transaction aligns with EQR’s strategic initiatives to be the pre-eminent western tungsten producer,” he said.

“Upon completion of the transaction, EQR will have achieved a strategic diversification of products, customers and geography, and be proud 100% 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 executive chair Tony Adcock says bringing together TMG Group’s advanced ferrotungsten 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 realized following this potential transaction, with the enlarged EQR positioned very well to benefit from the tailwinds in the tungsten and ferrotungsten markets globally,” he said.

Upon completion, EQR will have operations on three continents and further advances its footprint as a leading western producer and supplier of tungsten and tungsten related products to the relevant markets, in the form of both tungsten concentrate and ferrotungsten.