Elmet Deepens Tungsten Supply Chain Bet with Larger EQ Resources Stake
Event summary
- Elmet exercised an option to buy 20 million additional shares of EQ Resources, bringing its total stake to 23.65M shares.
- The move follows a 2024 five-year tungsten concentrate offtake agreement valued at A$30M (current market prices).
- Elmet initially secured the deal with a A$2M advance payment for tungsten from EQR’s Saloro mine in Spain.
The big picture
Elmet’s increased stake in EQ Resources underscores the growing strategic importance of securing tungsten supply chains, particularly for defense applications. The move aligns with broader industry trends toward vertical integration in critical minerals as geopolitical tensions and regulatory pressures reshape global sourcing strategies.
What we're watching
- Supply Chain Resilience
- How Elmet’s deeper investment in EQR will affect its ability to secure tungsten for defense applications amid global supply chain volatility.
- Strategic Positioning
- Whether Elmet can sustain long-term competitive advantages through this partnership as demand for critical minerals grows.
- Execution Risk
- The pace at which Elmet and EQR can expand their collaboration beyond tungsten into other critical materials.
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