Tungsten West (AIM:TUN) has announced a significant investment of up to $97 million (£71 million) from the UK Government to restart production at the historic Hemerdon tungsten and tin mine located in Devon. This funding, which encompasses both equity and debt, is sourced from the National Wealth Fund (NWF) and is aimed at revitalising the mine to achieve full production capacity, thereby establishing a secure domestic supply of tungsten—a critical mineral vital for high-technology supply chains, aerospace, energy, and defence sectors.
The Hemerdon mine has a storied history, having supplied essential tungsten for military and defence efforts during both World Wars. Mining activities persisted intermittently until 1944, when operations ceased. The recent government investment is seen as a strategic move to bolster the UK’s mineral supply chain, particularly in the context of national security and economic growth. Chancellor of the Exchequer, John Healey, emphasised that this initiative will not only provide crucial minerals to British industries but also safeguard well-paid jobs across the UK, aligning with the government’s commitment to stimulate growth in all regions.
In conjunction with the investment, Tungsten West and the NWF have established a shareholder relationship agreement, allowing the NWF to nominate a non-executive director to Tungsten West’s board. This partnership is expected to facilitate the resumption of full production at Hemerdon, which is projected to create approximately 350 direct jobs.
Production at the Hemerdon site is set to commence soon, with tungsten and tin concentrates already being produced in the past month as final tests are conducted. The company is also in discussions with a major downstream tungsten refiner to enhance its operational capabilities. Jeff Court, CEO of Tungsten West, remarked on the significance of the Hemerdon resource, describing it as a world-class, low-cost, and long-life tungsten and tin asset that will support the UK’s national interests in the long term.
Despite previous challenges in restarting the mine, including cost overruns and fluctuating prices, the recent investment has invigorated Tungsten West’s stock, which surged by approximately 17% to 50.25 pence per share, valuing the company at around £627 million ($855 million) as of midday trading in London. This positive market response indicates strong investor confidence in the future of the Hemerdon mine and its role in the UK’s critical minerals landscape.
