Tungsten West (AIM:TUN) is rapidly bringing the Hemerdon Project, located in the UK, near production to address the ever-increasing supply gap for strategic tungsten concentrate.
The company is targeting the first phase of restart of fines gravity processing in Q3 2026, as cross site project works continue to accelerate towards the start of full plant commissioning from Q1 2027.
Some of the cross site project works included Tungsten West appointing the remaining major sub-contractors, starting preparatory earthworks for the mineral processing facility and the mine waste facility, as well as recruiting a COO and other key senior leadership roles.
CEO Jeff Court says the company appointed Ron Day as COO, who brings extensive international mining experience.
“In addition to this, we have also appointed a number of senior roles that brings extensive international and UK experience to the company, covering processing, mining, maintenance and ESG,” Court says.
“We also welcome the very positive progress made on our debt funding package, which is well advanced in the final due diligence stage and will integrate as planned into our project schedule.
“Additionally, the completion of the Komatsu mining equipment finance package is another important milestone.”
Tungsten West has also agreed to terminate an existing mining services contract with Hargreaves Services. The company will make payments to Hargreaves of £3 million ($5.72 million) this month, after which they will release security held over the mineral lease and a further £7 million by 15 May 2027.
As such, the company is advancing plans to self-perform mining operations with the conclusion of a binding finance agreement with Komatsu for £22.3 million of mining equipment. The first deliveries are expected this month and major mining fleet commission at site from August 2026.
In addition, a debt funding package of up to US$85 million is now being completed, with delivery of the due diligence report expected this month. A definitive document for the facility is concurrently being negotiated with the lenders.
A major existing shareholder has indicated willingness to fund the first tranche of US$25 million of the facility, should it not be concluded at this time, which is expected to be drawn prior to the end of May 2026.
As of 31 March 2026, the company had £25.5 million in unaudited cash reserves and unaudited revenue from tungsten sales of £600,000.
The Hemerdon Tungsten-Tin Mine operated in 1918 with production during both world wars. The project is located in Devon, UK.
Tungsten West is a mining developer focused on restarting the Hemerdon mine, which is considered hosting one of the largest tungsten resources globally.
According to Fastmarkets, the global tungsten market has entered 2026 in a state of ‘extreme volatility’, driven by China’s control over more than 80% of the global production.
Write to Aaliyah Rogan at Mining.com.au
Images: Tungsten West
