Abenojar Tungsten SA, a Spanish mining company, is considering an initial public offering (IPO) in London as part of Europe’s strategic efforts to secure a stable supply of tungsten, a critical industrial metal. The company has engaged Bank of Montreal, Deutsche Bank AG, and Peel Hunt Ltd. to assist in the IPO process, with an announcement expected in the coming weeks. This move comes at a time when London has seen IPOs raise approximately $686 million this year, indicating a potential revival in the city’s stock market activity.
Founded by the García San Miguel mining family, Abenojar Tungsten is focused on developing the El Moto tungsten and gold deposit located in Ciudad Real, central Spain. A feasibility study released in August estimated the project’s initial capital expenditure at €211 million (approximately $241 million). The El Moto mine is projected to begin production in early 2029, with an annual capacity of about 1.5 million tonnes. The European Union has designated this project as strategic, underscoring its importance in bolstering local tungsten production.
Tungsten is crucial for various applications, including renewable energy technologies, aerospace components, and defence systems. Currently, China dominates global tungsten production, prompting European policymakers to seek greater self-sufficiency in this critical raw material. The El Moto project is expected to produce around 4,227 tonnes of tungsten concentrate annually, which will significantly contribute to Europe’s demand.
The El Moto mine is designed as an underground operation to minimise environmental impact, with a focus on sustainability and local employment. Once operational, it will create approximately 400 direct jobs and additional indirect employment opportunities in the region, which has been facing rural depopulation. Abenojar Tungsten is committed to hiring locally and providing vocational training to ensure that the workforce is equipped with the necessary skills for mining operations.
The strategic significance of the El Moto project is further highlighted by its designation under the EU’s Critical Raw Materials Act, which aims to enhance the resilience of the European supply chain for essential minerals. As the company prepares for its potential IPO, it is poised to play a vital role in addressing Europe’s tungsten supply challenges and supporting the region’s economic growth.
