Tungsten Mining Secures Full Permits for Watershed, Production Targeted H1 2027
Key Takeaways
- Tungsten Mining NL has secured all required approvals for the Watershed Tungsten Project, including the Environmental Authority, PRCP, and EPBC determination, making it fully permitted through to construction and operations.
- Pre-FID construction is already underway with up to 60 people on site across multiple active work fronts, with accommodation capacity scaling to 200+ personnel by end of November 2026.
- The June 2026 Preliminary Economic Evaluation delivered a pre-tax NPV8 of A$1.31 billion and a pre-tax IRR of 198% against pre-production capital of A$274 million.
- The DFS is targeted for release in October 2026, with a Final Investment Decision to follow shortly after and first production targeted for H1 2027.
- Watershed holds a Mineral Resource of 69.7Mt at 0.11% WO3, supporting a potential eight-year mining operation approximately 130km north of Cairns in Far North Queensland.
Watershed fully permitted as early construction gets underway
Tungsten Mining NL (ASX: TGN, OTCQB: TGNMF) has secured all required approvals for its Watershed Tungsten Project in Far North Queensland, clearing the path to construction and production operations.
The milestone follows the June 2026 Preliminary Economic Evaluation (PEE), which delivered a pre-tax NPV8 of A$1.31 billion and a pre-tax IRR of 198% (see ASX Announcement, 18 June 2026). With full permitting now in place, the company is targeting DFS release in October 2026, a Final Investment Decision (FID) to follow shortly after, and first production by H1 2027.
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All approvals secured — what’s now in place
The Watershed project now holds a complete suite of primary approvals, with pre-FID construction activities already commenced on site to maintain the rapid execution schedule. Up to 60 people are currently on site across multiple active work fronts.
| Approval / Stakeholder Engagement | Status |
|---|---|
| Environmental Authority (EA) | Approved |
| EPBC Act Referral | Determined: Not a Controlled Action – Particular Manner |
| Progressive Rehabilitation and Closure Plan (PRCP) | Approved |
| Environmental Rehabilitation Cost (ERC) security | Lodged; DETSI Approved — enables site works to commence |
| ILUA with Western Yalanji Aboriginal Corporation | In place |
| Cultural Heritage Management Plan (CHMP) | In place; heritage surveys ongoing |
| Local government engagement | Positive engagement in place |
| Station owner engagement | Positive engagement in place |
Gary Lyons, Chairman, Tungsten Mining NL
“With our full Environmental Authority and PRCP approved on granted Mining leases, Watershed is now fully permitted through to construction and operations. Our site works and camp construction are now well underway as we advance towards our DFS and Final Investment Decision later this year.”
What’s happening on the ground right now
Current work fronts at the Watershed site include:
- Resource drilling and exploration
- Environmental and heritage surveys
- Site establishment works
- Water-bore drilling
- Geotechnical drilling
- Main access road works
- Approved clearing activities for the process plant, accommodation areas, and early mining areas
Accommodation is currently being prepared to support up to 120 people, with capacity expanding to 100+ personnel by end of September and 200+ by end of November.
These early works are specifically designed to establish access and working areas and to reduce critical-path activities required following FID. A commitment to full project construction remains subject to FID, financing, and other project conditions.
Why tungsten matters — and why Watershed is strategically positioned
Tungsten (chemical symbol W) is a metal with a unique combination of properties that make it difficult to substitute. It holds the highest melting point of all elements except carbon, at around 3,400°C, giving it exceptional high-temperature mechanical properties. Commercially, it occurs as a constituent of two minerals: wolframite and scheelite.
Its uses span cemented carbides (used in cutting tools and industrial machinery), high-speed steels, super alloys, and a range of products across aerospace and defence, electronics, automotive, extractive, and construction sectors. These characteristics underpin its classification as a critical mineral, with supply security a priority for many industrial economies.
Watershed is one of the more significant tungsten development projects globally, underpinned by a globally significant tungsten resource inventory. The project holds a Mineral Resource of 69.7Mt at 0.11% WO3, supporting a potential eight-year mining operation, and sits approximately 130km north of Cairns in Far North Queensland.
The project’s history stretches back to a Definitive Feasibility Study completed by former owner Vital Metals Limited in 2014. Tungsten Mining acquired Watershed in August 2018 and has since materially advanced the project through updated resource estimates, a new PEE, and now full permitting.
Project economics and the path to FID
The June 2026 PEE (ASX Announcement, 18 June 2026) delivered headline economics that reflect a project of significant scale:
- Pre-tax NPV8: A$1.31 billion
- Pre-tax IRR: 198%
- Pre-production capital: A$274 million
These figures are drawn from the PEE and are subject to the material assumptions outlined in that study, including the timeframe for completion of remaining studies, securing of project financing, and receipt of applicable approvals. There is no certainty that these assumptions will be realised or that targeted dates will be met.
Watershed is not alone in producing large-scale tungsten project economics at this stage of the cycle; the Mt. Mulgine tungsten deposit recently delivered a comparable study outcome in the $1.0-1.4 billion return range, reflecting the broader re-rating of globally significant tungsten assets as supply security concerns intensify.
The upcoming milestones the company is targeting are:
- DFS release — October 2026
- Final Investment Decision — Late 2026
- First production — H1 2027
The current drilling, metallurgical, approvals, early works, engineering, and procurement activities are intended to further de-risk the project and support the pathway toward FID.
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What this milestone means for investors
Full permitting is a material de-risking event for any resources project. Regulatory uncertainty has been one of the primary risk factors for Watershed, and its removal means the project is now on the critical path toward FID with early works actively compressing the construction timeline.
The pre-FID site activities are not incidental — they are specifically designed to maintain schedule momentum and reduce the time between FID and first production. That discipline matters when a H1 2027 production target is in play.
Tungsten Mining’s dual listing on the ASX (TGN) and the US OTCQB market (TGNMF) also broadens the company’s investor base at a point when project visibility is increasing materially. The DFS release targeted for October 2026 and the subsequent FID represent the next significant catalysts for investors to watch. Forward-looking targets remain subject to completion of remaining studies, project financing, and applicable approvals.
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