UK gov makes strategic £71m investment to fully fund Tungsten West’s Hemerdon mine restart
The UK government has committed up to £71-million through the National Wealth Fund to support the restart of Aim-listed Tungsten West's historic Hemerdon mine in Devon, securing access to one of the world's largest tungsten resources.
Tungsten West has already produced some quantities of tungsten and tin concentrate at Hemerdon as part of its restart plans and is undertaking final completion testing towards starting production in the third quarter.
The investment establishes the UK government as a significant long-term partner in one of the UK’s most strategically important critical mineral projects, with rights to negotiate and procure up to 50% of the 2025 feasibility study tungsten production.
The partnership will help unlock a secure domestic supply of tungsten, a mineral vital for defence, aerospace, advanced manufacturing and next-generation energy technologies – essential to Britain’s industrial and national security interests.
Through the restart of Hemerdon, Tungsten West is supporting long-term economic growth in the South West of England by creating 350 direct jobs and supporting a further 2 400 jobs across the wider supply chain.
“We are living in a more dangerous world, which is why backing British industry is more important than ever before. That is what this deal does. We are tapping into one of the largest deposits of tungsten in the world, right here in the UK.
“This investment will supply vital minerals to British defence, energy and aerospace businesses – and keep good, well-paid jobs in the UK. All part of this government’s commitment to drive growth in every postcode, back British business and keep our country safe,” comments Exchequer Chancellor John Healey.
UK Business and Trade State Secretary Jonathan Reynolds adds that the National Wealth Fund’s investment is a major vote of confidence in the UK’s critical minerals sector and another step forward in the Prime Minister’s plan to reindustrialise Britain, which will support skilled jobs across Devon and unlock a new supply chain to power UK industry.
“This is our Critical Minerals Strategy in action: doubling down on projects like Tungsten West’s which will boost our economic resilience, strengthen supply chains and drive good growth in the South West and across the UK,” he notes.
In terms of the investment agreement, the UK government will make a £36-million equity investment in Tungsten West by subscribing to 100-million new ordinary shares at a price of £0.36 apiece, resulting in the National Wealth Fund holding 7.42% of the company’s shares. The fund will then provide debt financing worth £25-million, as well as a non-committed £10-million accordion facility.
National Wealth Fund will be entitled to nominate one nonexecutive director to the Tungsten West board.
Meanwhile, Tungsten West says it is well advanced with significant offtake negotiations with a major downstream tungsten refiner.
CEO Jeff Court affirms the Hemerdon mine is a world-class, low-cost and long-life tungsten and tin resource in the UK. “It is important to us that we prioritise UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next-generation energy. Through the support of the UK government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK’s national interests for the long term.”