Australian mining billionaire Andrew Forrest has acquired a 16.8% stake in EQ Resources Ltd (ASX:EQR), backing one of the Western world’s largest tungsten producers as governments and industry seek more secure critical minerals supply chains.
Forrest’s investment vehicle Wonongarra will purchase the entire holding of US private equity firm Oaktree Capital Management, comprising around 862 million EQR shares and 35.5 million options.
The transaction will not affect EQ Resources’ day-to-day operations, management or workforce.
The purchase price has not been disclosed. Based on EQR’s last traded share price of A$0.22, the shares alone would be valued at approximately A$190 million.
Vote of confidence in Australian production
Forrest said the investment supported Australian jobs, expertise and domestic critical minerals production at a time of heightened concern over global supply security.
“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,” Forrest said.
EQ Resources managing director Craig Bradshaw described the investment as “a great vote of confidence” in the company and its growth strategy.
He welcomed the transition from a financial investor to “a stalwart of the Australian mining industry with a proven track record of developing and growing assets”.
Growing global tungsten platform
EQ Resources operates the Mt Carbine Tungsten Mine in North Queensland and the Barruecopardo Tungsten Mine in Spain, giving the company a significant position in the Western tungsten market.
Tungsten is a strategically important metal used in construction and mining equipment, semiconductors, defence applications and advanced energy systems.
The company is expanding production at Mt Carbine while strengthening its European presence through Barruecopardo.
Oaktree exits after supporting expansion
Oaktree became a cornerstone shareholder in EQ Resources in 2023 and supported the company’s acquisition of Barruecopardo and the expansion of Mt Carbine.
Its exit marks a significant change in EQ Resources’ shareholder base, with Forrest’s investment bringing additional mining-sector experience and long-term strategic backing.
EQ Resources has a market capitalisation of approximately A$1.13 billion.