The UK government, through its National Wealth Fund, is set to invest £71m into the miner Tungsten West. This funding aims to support the reopening of the Hemerdon mine in Devon.
The investment package includes a £36m share purchase, which will grant the government a 7.4 per cent stake in Tungsten West and a position on its board of directors. Additionally, a £25m loan facility is part of the funding.
Chancellor John Healey stated that this investment is intended to supply vital minerals to British defence, energy, and aerospace businesses, while also maintaining jobs in the UK. Tungsten West, headquartered in Plympton, Devon, specialises in the mining and extraction of tungsten, tin, and secondary aggregates.
The project is anticipated to boost the local economy in the South West of England by creating 350 direct jobs. The government will also have the option to purchase up to half of the mine’s future tungsten output.
Jeff Court, chief executive of Tungsten West, emphasised the importance of prioritising UK requirements for this critical metal to support domestic demand, including strategic initiatives in defence and next-generation energy. The fresh capital is expected to assist the firm in rebuilding and upgrading processing equipment, covering project costs, and funding operations to achieve full metal production.
The Hemerdon Mine, previously known as Drakelands Mine, closed in October 2018. Tungsten West acquired the site in 2019. The London-listed firm announced that the government's shares would be formally listed on the stock market on 27 August, with mining operations restarting in the third quarter.