UK National Wealth Fund invests £71m to restart Hemerdon mine

Tungsten West has secured up to £71 million from the UK government’s National Wealth Fund to restart the Hemerdon tungsten and tin mine in Devon. The investment package consists of £36 million in equity and up to £35 million in debt financing. In exchange, the state-owned fund will receive a 7.42% stake in the company and the right to nominate one non-executive director to the board.

The Hemerdon mine is considered one of the largest tungsten deposits globally. Tungsten is classified as a critical mineral due to its essential use in aerospace, defense, electronics, and advanced manufacturing. As part of the deal, the UK government has the right to negotiate and procure up to 50% of the tungsten production outlined in the project’s 2025 feasibility study to bolster domestic supply chains.

Tungsten West is currently conducting completion testing and has already produced tungsten and tin concentrates during recent trial runs. The company aims to reach full-scale production by 2026 or 2027. The restart is expected to create approximately 350 direct jobs in the South West region of England.