Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.

In a filing to the Australia Securities Exchange, EQ Resources said it determined the enterprise value of TMG at AUD13.5 million ($8.8 million). The move is subject to some conditions, towards completion by January 31, 2025.

EQ Resources, a leading tungsten mining company with ongoing activities in Spain and Australia, emphasized the acquisition can help its diversification and vertical integration of upstream operations.

EQ Resources highlighted TMG is the owner and operator of a tungsten factory in Vietnam's northern coastal city of Hai Phong, with a potential output of 4,000 tons per annum (tpa) of FeW.

Thanks to the facility's scale and favorable cost structure in Vietnam, especially affordable electricity prices and workforce, the factory is regarded one of the most competitive in the industry.

The facility represents over 80% of FeW capacity outside China and Russia, EQ Resources stressed. Major consumers outside China are Europe, Japan, South Korea, and the Americas, totaling 5,000 tons a year. Major sectors are aerospace, defense, and automotive.

Tungsten is a rare earth element that cannot be sourced from China after 2026, according to a bill of the United States Congress. FeW is a master-alloy formed by combining iron and tungsten, which can help improve qualities of the steel industry.