Traxys Europe, a unit of Traxys Group, and Abenójar Tungsten have entered into an exclusive long-term offtake agreement for tungsten concentrate to be produced at the latter’s El Moto tungsten project in Ciudad Real, Spain.
The agreement grants Traxys the sole rights to purchase and distribute the concentrate for at least ten years from the start of commercial production.
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Under the terms of the contract, the company will handle marketing, logistics and global distribution of the El Moto project’s output.
The pricing of the tungsten concentrate is to be based on market conditions, referencing the internationally recognised ammonium paratungstate price index.
Traxys CEO Mark Kristoff said: “This long-term agreement with Abenójar Tungsten reinforces Traxys’ commitment to securing responsibly sourced critical raw materials for our global industrial customer base.
“By partnering with a high-quality European deposit such as El Moto, we are ensuring that our customers in critical manufacturing, energy and superalloy applications have dependable, long-term access to tungsten supply from secure, stable jurisdictions such as Spain.”
The EU and allied nations have identified tungsten as a critical and strategic raw material. It is considered essential for sectors such as aerospace, defence, energy transition and industrial tooling.
Global supply for tungsten is heavily concentrated, with China accounting for around 80% and intensifying its export controls. This has increased the focus on alternative sources outside China for Western industrial consumers.
El Moto holds the designation of a “strategic project” under the EU Critical Raw Materials Act and is said to be among the largest tungsten developments outside China.
Construction at El Moto began in 2026, with first production expected in the first quarter of 2029.
Abenójar Tungsten CEO Gonzalo García San Miguel said: “Partnering with a leading global trading house such as Traxys provides El Moto with clear commercial validation and direct access to a global network of concentrate consumers and industrial end users of tungsten products.”
According to a 2026 definitive feasibility study, the project is forecast to produce more than 4,000 tonnes per annum (tpa) of contained tungsten trioxide in concentrate once it reaches steady-state operation.
The agreement also provides flexibility for Abenójar Tungsten should it develop downstream processing capabilities in future, allowing certain production to be supplied directly to this operation.
