Queensland govt invests $20m in EQ Resources tungsten mine
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The news: The Queensland Investment Corporation (QIC) has agreed to provide a $20 million funding facility for EQ Resources' (EQR's) Mt Carbine tungsten mine in Far North Queensland.
The numbers: The Queensland Critical Minerals and Battery Technology Fund will provide EQR's mine with up to $20 million in a three year loan facility.
The funding will consist of a $12 million tranche, which will assist in doubling processing capacity and commencing underground drill testing, and an $8 million tranche, which will support continued underground drill testing and the start of underground trial mining.
The context: EQR's CEO Kevin MacNeill said the state government's financing will support the miner's recently announced expansion program to double capacity at its Mt Carbine site.
The expansion program aims to assist securing global supply of the critical mineral tungsten ahead of forecast global shortages and as prices start to increase an estimated 10% quarter on quarter.
The state fund's primary objective is to assist miners and refiners of critical minerals and the development and manufacturing of battery technologies and advanced materials in Queensland.
What they said: Queensland's deputy premier Cameron Dick said: "Our investment through the Queensland Critical Mineral and Battery Technology Fund provides a pathway for EQ Resources to extend the existing mine by further exploring tungsten resources accessible through underground mining".
"New plant equipment, drill testing and trial mining is forecast to increase capacity and extend the mine's life by at least five years, ensuring global demand for tungsten continues to deliver local opportunities for Far North Queenslanders," he said.
The source: ASX announcement
