Billionaire Andrew Forrest buys $190 million stake in miner EQ Resources from Oaktree
The mining company’s shares surged more than 23 per cent on the news.
Australian billionaire Andrew Forrest has taken a $190 million stake in Australian miner EQ Resources.
Wonongarra, an investment company owned by Mr Forrest, acquired a 16.8 per cent stake, or 862.1 million shares, in the tungsten miner from Oaktree Capital, making him the biggest shareholder in the miner.
EQ Resources managing director Craig Bradshaw welcomed Mr Forrest’s investment.
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By continuing you agree to our Terms and Privacy Policy.“It is a strong endorsement for EQ Resources to see the ownership baton passed from a financial investor to a stalwart of the Australian mining industry with a proven track record of developing and growing assets,” he said.
“This is a great vote of confidence in EQ Resources, our people, and the growth strategy we are executing across our operations in Australia and Spain.”
Oaktree, which has been a cornerstone investor in the miner since 2023, supported EQ’s acquistion of the Barruecopardo tungsten mine in Spain and the ongoing expansion of the Mt Carbine tungsten mine in North Queensland
Oaktree Capital’s Federico Alvarez-Demalde described that growth period at the time as “transformative” for the miner.
“The Company has delivered on its strategy of building a leading Western tungsten supply base, and we are proud of what has been achieved at Mt Carbine and Barruecopardo,” Mr Alvarez-Demalde said.
“We wish the Board and the EQR team every success as the Company enters its next phase under new cornerstone ownership.”
EQ Resources is a global tunsgten miner with operations in Australia and Spain.
The company said the sale of Oaktree’s stake to Mr Forrest won’t affect EQ’s day to day operations, management or staff.
EQ’s shares surged on Monday after the news, up 23.6 per cent to 27 cents after slumping to around 22 cents last Friday.
Mr Forrest, founder of one of the world’s largest producers of iron ore, highlighted that this investment supports the Australian economy.
“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,” the founder and chairman of Fortescue 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.
“We are proud to become a long-term shareholder in a company that is de-risking its operations, ramping up production and beginning to generate real cash flow. We look forward to seeing the business continue to grow.”
