EQ Resources Shares Rally as Billionaire Forrest Invests

Australian mining billionaire Andrew Forrest's private investment vehicle has agreed to buy a 16.8 percent stake in EQ Resources (ASX:EQR) from Oaktree Capital Management for AU$189.7 million (approximately US$132.5 million).

The transaction, executed through Forrest's wholly owned company Wonongarra Pty Ltd, transfers Oaktree's entire holding of 862.1 million ordinary shares and 35.6 million options in the tungsten producer.

“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, who is also founder and chairman of Fortescue, said in a statement.

“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.”

EQ Resources operates the Mt Carbine mine in North Queensland, Australia, and the Barruecopardo mine in Salamanca Province, Spain, making it the largest Western tungsten producer. The company produced 1,189 tons of tungsten trioxide in the 2026 financial year.

China currently controls approximately 85 percent of global tungsten supply. The metal is used extensively in semiconductors, industrial machinery, energy infrastructure, and defense applications.

Oaktree had been a cornerstone investor since 2023, funding the acquisition of the Barruecopardo mine and the expansion of Mt Carbine. EQ Resources is currently deploying a US$27.33 million construction package to expand Mt Carbine, with commissioning targeted for the third quarter of the 2027 financial year.

Federico Alvarez-Demalde, speaking on behalf of Oaktree, stated: “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.”

EQ Resources confirmed the ownership change will not impact its management, strategy, or day-to-day operations.

EQ Resources shares rose as much as 42 percent following the announcement, bringing the company's market capitalization to approximately AU$1.13 billion (US$791 million). The stock has gained more than 100 percent over the past 6 months.

The private block trade removes an equity overhang on the register and makes Wonongarra the company's largest shareholder.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.