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Business & Finance

UK National Wealth Fund to invest £71 million to reopen Devon tungsten mine

The funding for the Hemerdon mine near Plymouth is intended to secure domestic supplies of the critical mineral.

The short version

  • The UK's National Wealth Fund is investing up to £71 million in Tungsten West to restart operations at the Hemerdon tungsten and tin mine in Devon.
  • The financing package includes a £36 million equity investment and up to £35 million in lending.
  • The deal ringfences 50% of the mine's production for domestic use in British defense, aerospace, and electronics industries.
  • Tungsten West aims to ramp up the mine to full-scale production by 2027.

Key facts

  • The Hemerdon mine near Plymouth contains one of the largest tungsten deposits in the world.[BBC News]
  • The National Wealth Fund is providing up to £71 million, comprising a £36 million equity investment and up to £35 million in lending to Tungsten West.[BBC News]
  • Chancellor John Healey announced that 50% of the mine's production will be ringfenced for use within Britain.[BBC News]
  • Tungsten is a critical mineral used in steel, electronics, aerospace, defense, and next-generation energy industries.[BBC News]

What remains uncertain

  • Whether Tungsten West will successfully meet its projected timeline to reach full-scale production by 2027.[BBC News]

Sources