Tungsten West secures UK backing for Devon mine restart

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Tungsten West UK mine backing

Highlights

Tungsten West secured £71mn from the UK National Wealth Fund—£36mn equity for 7% and up to £35mn debt financing—with rights for the government to claim up to half the mine’s output.
Shares rose 17% after the announcement, and combined with earlier £40mn investment, funding will enable Hemerdon mine construction in 2024 and full-scale production by 2027.
Recent financing resolves 2024 liquidity concerns, positions Tungsten West to negotiate offtake deals outside China, and aligns with UK strategy to curb reliance on imported critical minerals.

Funding package supports mine reopening

According to Financial Times, Tungsten West said on Tuesday that the UK’s National Wealth Fund is investing £71mn in the project, with £36mn for a 7 per cent equity stake and up to £35mn in debt financing. Under the deal, the government also gains the right to secure up to half of the mine’s yearly production.

The funding offers a potential turnaround for the London-listed miner, which has repeatedly warned over its fragile cash position. Its shares rose 17 per cent after the announcement, and the company says the new backing, together with roughly £40mn raised earlier this year from investors including Lansdowne Partners, supports construction and reopening of the Hemerdon tungsten and tin mine this year, with full-scale production expected in 2027.

Chief executive Jeff Court told the Financial Times that the combined financing gives the project more funding than it needs to reach full production, while also providing a buffer. He added that Tungsten West is in advanced talks with a refiner outside China to buy part of the output and process it into usable industrial material.

Critical minerals strategy gains urgency

Tungsten West plans to restart the former Hemerdon mine on the outskirts of Plymouth, where production stopped in 2018 after the previous owner fell into administration. The project sits within a wider push by the UK government to reduce reliance on overseas supply chains for minerals used in aerospace, weapons and tool manufacturing.

China dominates global tungsten production, and prices have surged since 2025 after Beijing imposed export restrictions and concerns over shortages grew as governments increased defence spending. Business secretary Jonathan Reynolds says the investment shows the UK’s critical minerals strategy in action, while John Healey says support for British industry is becoming more important in a more dangerous world.

The company has had a difficult financing history. After addressing its 2023 liquidity problems, it warned at the end of 2024 that cash reserves were very limited, and in December said there was material uncertainty over its ability to continue as a going concern. Court says Tungsten West is now in a very different position, having upgraded the project and its processes, and he adds that the company is also discussing possible minimum-price arrangements with buyers while remaining able to operate even if tungsten prices fall.

In our earlier coverage of proposed changes to the UK Cyber Security and Resilience Bill, we explained how ministers want stronger powers to manage risks from high-risk suppliers in critical sectors such as energy, healthcare and telecoms. We also noted the plans would tighten incident-reporting deadlines and could raise costs for businesses that depend on dominant overseas suppliers, reflecting a broader push to shore up national resilience.

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