ASX-listed EQ Resources (EQR), a tungsten producer with operations in Australia and Spain, has received a letter of interest (LoI) from the Export-Import Bank of the United States (Exim) to support the expansion of its Mt Carbine tungsten project in Queensland.

The LoI falls under Exim’s supply chain resiliency initiative and signals that the bank is able to consider a ten-year debt facility of up to $34-million to support the capital expansion and further development of the Mt Carbine operation.

The proposed expansion will double processing capacity at Mt Carbine, subject to securing funding. Long-lead items and major equipment for the planned plant expansion have already been delivered to site. The upgrade will allow for increased throughput of low-grade ore from the historical stockpile – estimated at more than 10-million tonnes – to supplement higher-grade ore mined from the openpit and potential future underground operations.

The 2022 Mt Carbine underground scoping study outlines a pathway for the longer-term development of the deposit. Currently, only 19% of the in-situ mineral resource is classified as ore reserves and is being used in the openpit mining schedule.

The SCRI, launched by Exim, aims to finance mining projects outside of China to diversify and strengthen the supply chain of critical minerals, which are increasingly vulnerable to export restrictions and geopolitical risks. Tungsten is designated as a critical mineral by the US, European Union, and Australia.

EQR executive chairperson Oliver Kleinhempel said in a statement on Friday that the support from Exim aligned with the company's role in strengthening non-China supply chains for critical materials.

"With two operating mines in Australia and Spain, EQR has positioned itself as a reliable and ambitious partner. Recent geopolitical events and aggressive trade policies have contributed to a severe shortage of supply in the tungsten market. EQ Resources is positioned well with its Mt Carbine expansion plans to meet the demand of US customers,” he stated.