Tungsten Mining's Mt Mulgine PFS Outlines Major Low-Cost Tungsten Operation
Key Takeaways
- •The Mt Mulgine PFS base case, processing 8 Mtpa, delivers a pre-tax NPV8 of $6.82 billion and a pre-tax IRR of 55%, rising to $15.55 billion and 113% at 14 August 2026 spot prices.
- •The project requires $870 million in initial capital and supports a planned mine life of approximately 21.9 years, producing an average of about 5,653 tonnes of WO3 per year plus molybdenum, copper, gold and silver.
- •Tungsten Mining states the project sits at the low end of the global cost curve, with Fastmarkets forecasting tungsten demand rising from roughly 154,000 tonnes to 215,000 tonnes by 2035 amid Chinese export restrictions and supply concentration.
- •Tungsten is designated a critical mineral by the United States, the European Union and Australia, supporting Western interest in diversified non-Chinese supply.
- •A Definitive Feasibility Study is scheduled to start in September 2026 and complete by Q3 2027, with a Final Investment Decision targeted for Q1 2028 and first production planned for 2029.
Tungsten Mining (ASX: TGN) has released a strong pre-feasibility study (PFS) for its 100%-owned Mt Mulgine Tungsten Project in Western Australia, setting out the potential for a long-life, low-cost tungsten operation.
Tungsten is a hard, dense metal used primarily in cemented carbide cutting tools, wear-resistant components and defence applications such as armour-piercing munitions. It is designated a critical mineral by the United States, the European Union and Australia, reflecting its strategic importance and concentrated supply chain.
The study outlines a base case operation processing 8 million tonnes per annum, delivering a pre-tax NPV8 of $6.82 billion and a pre-tax IRR of 55% based on the company's forecast commodity pricing. At spot prices as of 14 August 2026, the project's pre-tax NPV8 rises to $15.55 billion, with a pre-tax IRR of 113%. As a pre-feasibility level assessment, the figures carry lower confidence than a definitive feasibility study and remain subject to further engineering, cost and market refinement.
The proposed development would require $870 million in initial capital and carries a planned mine life of approximately 21.9 years. Over that period, Mt Mulgine is expected to produce an average of roughly 5,653 tonnes of WO3 per year, along with molybdenum, copper, gold and silver.
According to Tungsten Mining, these figures position Mt Mulgine at the low end of the global cost curve. The study benchmarks the project against existing tungsten operations outside China, where the majority of global mine production is concentrated. Western nations have been pursuing diversified tungsten supply, and new non-Chinese projects have attracted interest under critical minerals policies.
A market analysis prepared for the company by Fastmarkets forecasts tungsten demand growing from around 154,000 tonnes currently to 215,000 tonnes by 2035. The company noted that Chinese export restrictions, production quotas and rising demand from the defence and manufacturing sectors are contributing to a structurally constrained market.
Looking ahead, Tungsten Mining intends to advance Mt Mulgine towards a Definitive Feasibility Study (DFS), subject to board approval. The DFS is scheduled to begin in September 2026, with completion targeted for the third quarter of 2027. The company is aiming for a Final Investment Decision in the first quarter of 2028 and first production in 2029.
The Mt Mulgine PFS establishes a substantial development case for the project, with ongoing drilling and the planned DFS representing the next key steps in determining the operation's ultimate scale and economics.
