Tungsten West (LSE:TUN) has secured a proposed investment of up to £71 million ($135.3 million) from the UK Government to support the restart of its historic Hemerdon tungsten and tin mine in southwest England.
Located in Devon, Hemerdon has seen periods of mining dating back to the First World War and, according to Tungsten West, hosts one of the world’s largest tungsten resources.
The project is fully permitted, but its restart has faced years of delays amid cost overruns, volatile commodity prices, and funding constraints.
Tungsten West acquired Hemerdon in December 2019 and has since redesigned the processing plant and completed a revised Feasibility Study (FS) aimed at bringing the mine back into production.
Government backing
Under the proposed investment, the UK’s National Wealth Fund (NWF) will make a £36 million equity investment in Tungsten West.
The NWF will also provide a debt financing facility of up to £25 million, alongside a non-committed £10 million accordion facility, taking the potential government backing to £71 million.
Upon completion of the equity investment, the NWF would hold approximately 7.42% of Tungsten West.
The UK Government will also receive a limited period to negotiate an offtake agreement covering up to 50% of Hemerdon’s tungsten production outlined in the project’s 2025 FS.
According to the study, Hemerdon can support 17 years of primary ore feed, based on 39.7 million tonnes of JORC-compliant resources.
“Hemerdon is a world-class, low-cost, and long-life tungsten and tin resource in the UK. It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next generation energy,” Tungsten West CEO Jeff Court says.
Restart approaching
The government funding represents a major step towards bringing Hemerdon back into commercial production.
Tungsten West produced tungsten and tin concentrates last month as part of its restart preparations and is undertaking final completion testing ahead of a targeted production start in Q3 2026.
The company is also in advanced offtake negotiations with a major downstream tungsten refiner.
Proceeds from the fundraising will primarily support the Hemerdon restart and repay a short-term loan.
Tungsten West says the NWF investment reflects the strategic importance of establishing a secure domestic source of tungsten for the UK.
“We are tapping into one of the largest deposits of tungsten in the world, right here in the UK,” Chancellor of the Exchequer John Healey says.
“This investment will supply vital minerals to British defence, energy, and aerospace businesses — and keep good, well-paid jobs in the UK.”
Write to Jackson Chen at Mining.com.au
Image: Tungsten West
