Forrest Secures Tungsten Future
Andrew Forrest acquires 16.8% stake in EQ Resources from Oaktree, signaling strategic shift
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Key Points
1
At the last traded price of A$0.22 per EQ Resources share, the 862.1 million shares are worth about A$190 million, with an additional 35.5 million options included in the package.
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The deal includes the right to appoint a director, and the board seat travels with the shares, giving Forrest a direct governance role in EQ Resources.
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Oaktree Capital Management exits as cornerstone shareholder after facilitating key acquisitions, having backed EQ Resources since 2023 and supporting the Barruecopardo acquisition and Mt Carbine expansion.
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Forrest frames the investment as backing Australian production, jobs and domestic critical mineral supply chains, noting tungsten is essential yet globally concentrated and fragile.
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The two key assets, Mt Carbine in Queensland and Barruecopardo in Spain, position EQ Resources as a leading Western tungsten producer, reinforcing its market scale.
Australian billionaire Andrew Forrest has acquired a 16.8% stake in tungsten producer EQ Resources, sending its shares surging more than 34% on the news. His investment vehicle, Wonongarra, will buy Oaktree Capital Management's entire holding of 862.1 million shares and 35.5 million options, according to Reuters.
At EQ Resources' last traded price of A$0.22 per share, the 862.1 million shares alone are worth roughly A$190 million. The deal also gives Forrest the right to appoint a director to the company's board, handing him direct governance influence over one of the Western world's largest tungsten producers.
Oaktree Exits After Years of Backing EQ Resources
Oaktree has been EQ Resources' cornerstone shareholder since 2023. The US private credit giant helped fund two major moves: the acquisition of the Barruecopardo tungsten mine in Spain and the expansion of the Mt Carbine mine in North Queensland, Australia. With those deals done, Oaktree is now stepping back.
EQ Resources' management stressed that the ownership change is at the shareholder level only. Day-to-day operations, strategy, and personnel will stay the same. Oaktree's exit removes what analysts call "overhang risk" — the worry that a large financial seller might dump shares on the market at any time.
Forrest Bets on Tungsten as Global Supply Chains Tighten
Forrest framed the investment as a strategic bet on critical minerals. He said tungsten is "essential yet globally concentrated and fragile," pointing to heavy dependence on Chinese supply. Proactive Investors reported that Forrest sees the deal as backing Australian jobs and secure domestic supply chains.
Tungsten is used in cutting tools, defence equipment, and electronics. China controls roughly 80% of global production. EQ Resources' two mines — Mt Carbine in Queensland and Barruecopardo in Spain — make it one of the few large Western producers. That scarcity gives the assets real strategic weight.
Board Seat Signals Long-Term, Not Just Financial, Interest
The right to appoint a director travels with the shares under the deal's terms. That means Forrest, through Wonongarra, will have a seat at EQ Resources' board table. Mining.com.au noted the move signals a shift from financial to strategic ownership — the kind of patient, long-horizon stake Forrest has taken before in Australian mining.
Forrest's broader portfolio already includes long-term positions in iron ore, green hydrogen, and battery metals through Fortescue. Adding tungsten fits a pattern: back critical, domestically produced materials before the rest of the market catches on. EQ Resources' management called the move "a vote of confidence" in the company's growth plans.
EQ Resources Eyes European and Australian Tungsten Expansion
EQ Resources is pushing to grow output at both mines. Mt Carbine is in an expansion phase in North Queensland. Barruecopardo, in western Spain, is one of Europe's largest tungsten operations. Together, they position EQ Resources to capture demand from Western defence and industrial buyers who want to reduce reliance on Chinese supply.
AOL reported that EQ Resources shares jumped over 34% on the day the deal was announced. That kind of market reaction shows investors see Forrest's entry as more than just a change of ownership. It is widely read as a signal that a credible, deep-pocketed backer now has skin in the game — and a seat at the table.
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