Shares in EQ Resources Ltd. experienced a dramatic rise following an agreement by mining billionaire Andrew Forrest to acquire a significant stake in the Sydney-listed tungsten producer from an existing shareholder.
The company announced that Forrest's investment vehicle, Wonongarra Pty Ltd., has agreed to purchase the entire 16.8% holding in the company from Oaktree Capital Management. This news propelled the stock to surge as much as 32%, marking its largest intraday gain since February 2025.
The transaction involves approximately 862.1 million ordinary shares and 35.6 million options. Based on Friday's closing price, the stake is valued at around $190 million (USD 133 million).
Tungsten is a critical metal for weapons manufacturing and semiconductor production. Its price has been climbing steadily since China placed the material on an export control list during last year's Sino-U.S. trade disputes. Furthermore, increased military demand stemming from the Middle East conflict has intensified supply pressures.
Australia holds the world's largest tungsten reserves. However, according to data from the Australian Department of Industry, Science and Resources, approximately 80% of global tungsten production currently originates from China.
The Queensland-based company is the largest tungsten producer in the Western world. EQ Resources noted that Oaktree Capital has been a cornerstone investor since 2023, supporting the company's acquisition of the Barruecopardo tungsten mine in Spain and ongoing efforts to expand production at the Mt Carbine project in northern Queensland.
The company added that this transaction will not impact EQ Resources' strategic direction, daily operations, management team, or workforce.
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