Image source: EQ ResourcesConsiderable exploration potential will be unlocked at Australia’s largest tungsten mine to assist in securing supply of the critical mineral ahead of forecast global shortages.
Supported by the Queensland Critical Minerals and Battery Technology Fund (QCMBTF), underground mining operations will return to EQ Resources’ (EQR) Mt Carbine site in Far North Queensland, where a relatively unexplored tungsten deposit holds the key to new mineralisation opportunities.
The Queensland Investment Corporation (QIC) managed Fund will provide a A$20 million senior secured debt facility for new plant equipment, drill testing and trial mining to further explore tungsten resources.
Possessing the highest melting point and tensile strength of all pure metals, tungsten has a range of renewable energy applications, including solar cells, wind turbines, and battery storage.
QIC State Chief Investment Officer Allison Hill said securing additional tungsten mineralisation will strengthen Queensland’s position as a significant contributor to global critical minerals supply chains.
“There are relatively few mines globally in a position to fill anticipated supply-demand gaps for tungsten as existing outputs are challenged and demand for clean energy technologies grows,” Ms Hill said.
“Mt Carbine is one of them, where workers are on track to produce around 3,000 tonnes of tungsten concentrate every year.
“While the existing open-cut mine is forecast to reach its end of life by 2029, supply-demand deficits are expected to run well beyond into the 2030s.
“QIC’s QCMBTF investment will allow EQR to kickstart plans to reopen historic underground mining operations and explore a dormant tungsten deposit with considerable potential for additional mineralisation.”
The A$20 million debt facility provides a pathway to extend the life of Mt Carbine by up to six years and create up to 100 local jobs by accelerating EQR’s processing expansion and underground development programs.
EQR Chief Executive Officer Kevin MacNeill said the company was pleased to receive such extensive and attractive funding support.
“This financing not only supports our recently announced expansion program to double capacity at Mt Carbine, but we also consider this a strong endorsement of our corporate strategy to further establish ourselves as a leading and responsible producer of globally relevant critical minerals,” Mr MacNeill said.
“We look forward to responsibly contributing to the development of clean energy technologies alongside our offtake partners using high-quality tungsten powders in battery technologies and energy storage applications.”
The $170 million Queensland Critical Minerals and Battery Technology Fund has two investment streams:
- QIC oversees venture and growth capital investments
- Projects seeking grant assistance are referred to Queensland Treasury
The Fund’s first capital investment into Alpha HPA is already supporting the production of sapphire glass from high-purity alumina in Gladstone, capturing significant value in the advanced materials supply chain.
For more information, visit www.qic.com/qcmbtf
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QIC is a trusted investment manager and adviser providing risk adjusted returns for the clients we serve. As one of the nation’s leading institutional investment managers, we deliver alternative real asset solutions across infrastructure, real estate, private debt, private equity and natural capital, in addition to a liquid market offering, for approximately 115 Australian and global clients. We also act as the Queensland Government’s independent investment advisor, managing a fully-funded Defined Benefit scheme and the Queensland Future Fund, both of which deliver on the State’s long-term investment objectives. We have A$106bn in assets under management (as at 31 Dec 2023) and are headquartered in Brisbane, Australia, with offices in Sydney, Melbourne, New York, San Francisco, London and Singapore.