Forrest Backs Tungsten as China Grip Sparks Concern

Andrew Forrest has acquired a 16.8% stake in EQ Resources, one of the Western world's largest tungsten producers, as governments and the industry seek more secure supplies of the critical mineral. 

The Australian mining billionaire's investment vehicle, Wonongarra, is buying the entire stake from Oaktree Capital Management.

The deal covers around 862.1 million shares and 35.6 million options, and comes with the right to appoint a director to EQ Resources' board. The stake is valued at approximately A$189.7m (US$132.5m), according to the company. 

Oaktree has backed EQ Resources since 2023, supporting the company's acquisition of the Barruecopardo tungsten mine in Spain, as well as the expansion of its Mt Carbine operation in Australia. 

EQ Resources says the change in ownership will not affect its management, strategy or day-to-day operations.

Backing critical mineral security

Andrew Forrest, who is also Founder and Chairman of Fortescue, says the investment reflects growing concern over the security of critical mineral supply chains.

"This investment backs an Australian producer, Australian jobs and Australian know-how at the moment the world has woken up to how fragile critical mineral supply chains have become," he says.

"Tungsten is essential to the machines that build our homes, hospitals, cities and modern-day energy systems, as well as the semiconductors in every phone and computer."

China controls around 85% of global tungsten supply, according to EQ Resources. The metal is used across construction and mining equipment, semiconductors, defence applications and advanced energy systems.

Craig Bradshaw, Managing Director of EQ Resources, welcomed the investment. "It is a strong endorsement for EQ Resources to see the ownership baton passed from a financial investor to a stalwart of the Australian mining industry with a proven track record of developing and growing assets," he says.

EQ Resources' operations

EQ Resources operates the Barruecopardo tungsten mine in Spain and the Mt Carbine mine in North Queensland, which together make the company the largest Western tungsten producer. The company produced 1,189 tonnes of tungsten trioxide in the 2026 financial year.

EQ Resources' Mt Carbine expansion is being funded in part by an A$39m (US$27.33m) construction package, with commissioning targeted for the third quarter of the 2027 financial year.

The company's shares have risen more than 610% over the past 12 months, having jumped as much as 34% on the day the Forrest investment was announced.

EQ Resources is now valued at around A$1.13bn (US$791m), according to the company.

What comes next

The transaction takes place entirely at the shareholder level and does not require regulatory approval, according to EQ Resources. Wonongarra's right to appoint a director means the market will be watching who Forrest nominates to the board, and how closely he intends to engage with the company's strategy.

The stake replaces Oaktree as EQ Resources' largest shareholder in a single trade, removing what analysts have described as an overhang from a financial investor exiting the register.

Attention now turns to whether the Mt Carbine expansion stays on track for its third-quarter FY27 commissioning date, and whether Forrest's involvement accelerates any offtake or financing discussions.

EQ Resources' production is expected to scale further at both Barruecopardo and Mt Carbine, as demand for tungsten grows alongside wider efforts to diversify critical mineral supply chains away from China.