Australia's Tungsten Mining Developments Gain Momentum Amid Global Supply Concerns
Australia aims to reduce reliance on China for tungsten supply, with key projects like Tungsten Mining's Watershed targeting production by 2027. The strategic importance of tungsten in various industries heightens the urgency for capital and partnerships to develop local mines.
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Tungsten Mining (ASX:TGN) is targeting a September 2026 final investment decision for its Watershed project, with a projected $274 million development cost and an estimated pre-tax NPV of $1.3 billion. Australia's current tungsten resources account for 12% of global reserves, but only EQ Resources' Mt Carbine and Group 6 Metals' Dolphin mine are operational.
China's dominance in tungsten supply, controlling approximately 80% of production, poses risks for Western manufacturers, especially after recent export controls. Investors' interest is spurred by high tungsten prices, with Watershed being one of the few undeveloped assets nearing production.
However, financing and securing offtake agreements remain critical challenges. Other ASX companies, including Flynn Gold and Apollo Minerals, are pursuing tungsten opportunities, highlighting a potential shift in the market landscape.
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