Tungsten Mining: Mt Mulgine PFS points to major low-cost tungsten operation

Tungsten Mining (ASX: TGN) has unveiled a strong pre-feasibility study for its 100%-owned Mt Mulgine Tungsten Project in Western Australia, outlining the potential for a long-life, low-cost tungsten operation.

The PFS has outlined a base case 8 million tonne per annum operation with 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 increases to $15.55 billion, with a pre-tax IRR of 113%.

The proposed operation would require $870 million in initial development capital and has a planned mine life of approximately 21.9 years. Mt Mulgine is expected to produce an average of approximately 5,653 tonnes of WO3 per year over the life of the mine, alongside molybdenum, copper, gold and silver.

Tungsten Mining said this positions Mt Mulgine at the low end of the global cost curve, with the study benchmarking the project against existing tungsten operations outside China.

Tungsten Mining’s market analysis, prepared by Fastmarkets, forecasts demand increasing from around 154,000 tonnes currently to 215,000 tonnes by 2035. The company said Chinese export restrictions, production quotas and increasing demand from defence and manufacturing are contributing to a structurally constrained market.

Tungsten Mining plans to progress Mt Mulgine towards a Definitive Feasibility Study, subject to board approval. The DFS is scheduled to commence in September 2026, with completion targeted for the third quarter of 2027. The company is targeting a Final Investment Decision in the first quarter of 2028 and first production in 2029.

Tungsten Mining’s Mt Mulgine PFS has therefore established a substantial development case, while ongoing drilling and the planned DFS provide the next key steps towards determining the project’s ultimate scale and economics.

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