W Resources Restarts Tungsten Production in Spain

Aim-listed W Resources has recently restarted tungsten production at its La Parrilla mine in Spain following an extended maintenance shutdown. A number of improvements have been made during this period to streamline plant efficiency and overall recovery.

In addition, the company delayed restarting operations to evaluate options for liquefied natural gas (LNG) supplies after announcing a 425 percent increase last month.

W reports that it has received the first tranche of funding from BlackRock Financial Management, some of which has been used to secure deliveries of LNG to power the plant. In the meantime, the company continues to monitor the price of LNG and hopes to accelerate plans to bring a second power line to the mine, as well as investigate the use of solar energy, which would reduce its reliance on LNG.

"The war in Ukraine has put unprecedented pressure on energy prices and the Company is evaluating all available alternatives. Despite this challenge, demand for our tungsten and tin concentrates has remained very strong and prices have remained strong," said Chairman Michael Masterman.

W Resources is establishing a European mining company focused on providing long-term tungsten production, a key strategic metal with strong market fundamentals. W Resources' strategy is to establish a European mining company focused on delivering long term production of tungsten, a key strategic metal with strong market fundamentals.

The Company is focused on building a world-class tungsten company with its flagship project, La Parrilla in Spain, one of the largest tungsten mines in the world, starting production in November 2019.

Demand for tungsten remains high and due to tight supply, W is well-positioned to benefit from continued demand and higher prices with an offtake agreement in place for La Parrilla. Importantly, the forecasted supply shortage will lead to higher prices, with the market forecasting $445/ton to $530/ton by 2023.

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