Forrest’s $133M tungsten bet sends EQR shares soaring

Mining billionaire Andrew Forrest has agreed to buy a 16.8% stake in EQ Resources (ASX: EQR) from Oaktree Capital Management, sending the Australian tungsten producer’s shares to their biggest gain in nearly 18 months.

EQ Resources shares closed Monday more than 34% higher at 30 Australian cents, up from 22 Australian cents on Friday’s close, marking their strongest one-day gain since February 2025. The tungsten producer’s market capitalization now stands at A$1.52 billion ($1.06 billion).

The company said Forrest’s private investment vehicle, Wonongarra Pty Ltd., will acquire Oaktree’s entire holding of about 862.1 million shares and 35.6 million options. The transaction values the stake at A$190 million ($133 million) based on Friday’s closing price and makes Forrest the company’s largest shareholder. 

Oaktree became a cornerstone investor in 2023, backing EQ Resources through a period of weak tungsten prices and helping finance its acquisition of the Barruecopardo mine in Spain and expansion of the Mt Carbine project in Queensland.

“Oaktree backed our vision at a pivotal time, and their partnership has been instrumental in establishing EQR as the leading Western tungsten producer,” managing director Craig Bradshaw said. He described Forrest’s investment as “a strong endorsement for EQ Resources.”

Strategic metal

The deal underscores growing investor interest in Western sources of tungsten as governments and manufacturers seek alternatives to China, which produces about 80% of the world’s supply. 

Prices have surged since Beijing imposed export controls on the metal, while rising defence demand and a US ban taking effect on Jan. 1, 2027, on defence contractors using tungsten sourced from China, Russia, Iran or North Korea are expected to tighten global markets further.

“The world has woken up to how fragile critical mineral supply chains have become,” Forrest said. “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. Yet global supply is remarkably concentrated.”

Australia holds the world’s second-largest tungsten reserves after China, according to the Department of Industry, Science and Resources. 

EQ Resources says it is the largest Western tungsten producer, and the company said Forrest’s investment will not affect its strategy, management team, day-to-day operations or employees.