Key facts
- The UK government's National Wealth Fund is injecting £71 million into Tungsten West.
- This investment will help reopen the Hemerdon mine in Devon.
- The funding includes a £36 million share purchase, giving the government a 7.4% stake and a board seat.
- A £25 million loan facility is also part of the package.
- The government gains the option to purchase up to half of the mine's future tungsten output.
- The investment is expected to create 350 direct jobs.
The UK government, through its National Wealth Fund, is injecting £71 million into mining company Tungsten West to facilitate the reopening of the Hemerdon Mine in Devon. This significant financial package comprises a £36 million share purchase, which will establish a 7.4% government stake and secure a board seat, and a £25 million loan facility.
The investment is strategically aimed at bolstering domestic supply chains for critical minerals essential to the UK's defence, energy, and aerospace sectors. Tungsten West, specializing in tungsten, tin, and secondary aggregates, will use the capital to rebuild and upgrade processing equipment, cover operational costs, and fund labor to achieve full metal production. The Hemerdon Mine, previously known as Drakelands Mine, had been closed since October 2018.
Chancellor John Healey highlighted the importance of the investment for supplying vital minerals to British industries and maintaining domestic jobs. Tungsten West CEO Jeff Court emphasized prioritizing UK requirements for tungsten to support strategic initiatives. The government's shares are scheduled for stock market listing on August 27, with mining operations expected to resume in the third quarter.
This move represents a key utilization of the National Wealth Fund to advance government objectives in strategic markets. Previously, the fund provided a £599 million financing package for Rolls-Royce's Small Modular Reactors (SMR) project, demonstrating its role in de-risking projects for private lenders and attracting further investment.