European tungsten developer Abenójar Tungsten has confirmed the El Moto project, in Spain, as a long-life and high-margin tungsten operation with an after-tax internal rate of return of 62% at base case commodity prices.

Having started construction on the project already, the company expects production from the mine in 2029.

The company finds in preliminary results of a 2026 definitive feasibility study (DFS) for El Moto that the planned underground mining operation and ore processing facility can viably process 1.5-million tonnes a year, with ore processing planned to take place over an 18-year mine life to produce saleable tungsten concentrate and a separate gold concentrate.

At tungsten prices of $1 415/t and gold prices of $3 500/t, and after spending upfront capital expenditure of €211-million, the project can generate about €357-million of earnings every year from producing 422 656 metric ton units (mtu) of tungsten oxide at steady state.

Abenójar Tungsten CEO Gonzalo Garcia San Miguel says El Moto is a world-class tungsten project in a Tier 1 jurisdiction, boasting a high-grade close-to-surface deposit that can benefit from existing regional infrastructure. The project is also backed by a strong social licence, he confirms.

The DFS confirms the future mine as a low-cost tungsten operation at an all-in sustaining cost of €236/mtu and C1 cost of €188/mtu, with the potential to meaningfully serve growing tungsten needs and support critical mineral supply chain resilience.

The strategic importance of tungsten, as a critical component in sectors that underpin modern society, is increasingly apparent and is reflected in the current strengthening spot price.

"The economics in the DFS show a high-quality project providing strong steady state earnings for an initial 18 years of production life, which accounts for only 25% of total resource with room for significant reserve conversion and mine plan extension," the company says.

Meanwhile, the Spanish government has approved €12.6-million in regional incentives for the El Moto tungsten project. Having already been designated a European Strategic Project under the Critical Raw Materials Act, this support reinforces Abenójar Tungsten's commitment to sustainable mining, driving local growth and creating jobs in the region.