Tungsten West (AIM:TUN) has entered into a binding eight-year supply and offtake agreement with US-based vertically integrated tungsten producer Elmet Technologies (NASDAQ:ELMT).
Under the agreement, Tungsten West will supply Elmet with 1,000 tonnes per year of contained tungsten trioxide from the Hemerdon tungsten and tin mine in Devon, UK, over the eight-year term. The agreement represents an indicative nominal value of over £1.4 billion ($2.64 billion) during its eight-year term.
Elmet will use commercially reasonable endeavours to process an additional 500 tonnes per year of contained tungsten trioxide to support UK Government strategic requirements and UK industry.
Tungsten West CEO Jeffery Court says the agreement represents a step forward in establishing Hemerdon as a “strategically important” source of tungsten for the Western world.
“More importantly, it establishes a long-term supply relationship between Hemerdon and one of America’s leading vertically integrated tungsten businesses at a time when both the US and UK are placing increasing strategic importance on securing resilient supplies of critical minerals,” Court says.
“With production now underway, the support of the UK Government through the National Wealth Fund, and this long-term commercial agreement with Elmet, we are building a mine-to-market supply chain capable of supporting the critical mineral requirements of the UK, US, and their allies.”
The agreement has been structured to preserve the ability for additional Hemerdon production to support UK strategic requirements.
In August 2026, the National Wealth Fund invested up to £71 million in Tungsten West. The investment provides the UK Government with a negotiation period for the right to procure up to 50% of the mine’s tungsten production.
The Hemerdon mine’s ore body holds 39.7 million tonnes (Mt) of contained tungsten across 327Mt of JORC-compliant ore. The primary tungsten processing life is around 17 years, covering primary ore feed and subsequent stockpile ore processing, with the total mine life extending to over 40 years.
Elmet is building a vertically integrated US and allied tungsten supply chain, supported by a US$450 million ($639.6 million) investment from the US Department of War. The company has also separately secured a contract worth up to US$2 billion with the US Defense Logistics Agency to supply tungsten materials to the US National Defense Stockpile.
Tungsten West mines, processes, and produces tungsten and tin concentrate from one of the world’s largest tungsten resources located in South Devon.
Write to Aaliyah Rogan at Mining.com.au
Main image: Tungsten West
