EQ Resources (ASX:EQR) has received board approval to progress development plans for the $39 million Mt Carbine Expansion Project at the Mt Carbine Tungsten Mine in Far North Queensland.
The expansion plans include increasing processing capacity and infrastructure works following the delivery of long-lead items and other key equipment for the processing plant expansion.
The expansion is designed to increase the crushing capacity from around 1 million tonnes per annum to around 2 million tonnes per annum while also streamlining and automating the handling of existing materials. The crushing capacity is the current processing bottleneck for the operation.
The expansion is also expected to increase targeted production by 500 tonnes of tungsten trioxide per annum, based on the processing of the low-grade stockpile, with additional increases in production potentially coming from additional ore sources.
EQR notes that the company expects that the expanded capacity will position it to increase production in the near term and increase exposure to the current strong tungsten price environment. The company is also positioning itself as a reliable, cost-competitive, and secure supplier of tungsten for global supply chains.
Scope of the expansion project
The expansion project is estimated to cost $39 million, with key works including the installation of an upgraded crushing and screening circuit, integration of an upgraded ore sorting circuit, earthworks and civil works, structural and mechanical works, and electrical and instrumentation systems.
The expansion project will be delivered across several stages dependent on cash flows, procurement commitments, and construction readiness. Detailed engineering will continue through June 2026, with procurement and contracting through the remainder of the year.
EQR notes that project funding will comprise a combination of current cash reserves and operational cash flow.
Managing Director Craig Bradshaw says that the approval to progress the expansion project reflects the company’s focus on growing its operation at a time when tungsten is in short supply.
“At Mt Carbine, this means building the processing capacity required to support higher ore throughput, future feed flexibility, and the potential development of a regional tungsten basin around the existing operation,” Bradshaw says.
“This project is an important step in solidifying the position of Mt Carbine as a strong, resilient, and strategically important tungsten producer. It supports near-term production growth in a strong price environment, while also improving the operating platform needed to remain competitive through the cycle.
“Our focus is now on disciplined execution, safe delivery, and maintaining production momentum as we continue to build EQR’s Western tungsten platform.”
EQ Resources is a global tungsten mining company focused on sustainable mining and processing practices with assets in North Queensland, Australia, and the Salamanca Province, Spain.
Write to Amy Rotman at Mining.com.au
Images: EQ Resources
