The government's National Wealth Fund is set to invest £71m in mining firm Tungsten West to support the reopening of the Hemerdon mine in Devon. The funding package includes a £36m share acquisition, giving the government a 7.4 per cent stake and a board seat, plus a £25m loan facility. The project is expected to create 350 direct jobs across the West of England.
Funding details and government stake
The investment comprises a £36m share purchase that will grant the government a 7.4 per cent ownership stake in Tungsten West and a seat on the board of directors. An additional £25m loan facility forms part of the package. Beyond the financial injection, the government will secure an option to purchase up to half of the mine's future tungsten output.
John Healey, the Chancellor, said: "This investment will supply vital minerals to British defence, energy and aerospace businesses – and keep good, well-paid jobs in the UK." The funding is designed to de-risk the project for private lenders, using public money to "crowd in" billions in additional investment from the City and international markets.
Company background and mine history
Tungsten West, headquartered in Plympton, Devon, focuses on the mining and extraction of tungsten, tin and secondary aggregates – by-products of other industrial processes. The Hemerdon Mine, formerly known as Drakelands Mine, ceased operations in October 2018 following the liquidation of its previous operator, Australian company Wolf Minerals.
Tungsten West took ownership of the site in 2019 and has since invested years completely reconfiguring the processing layout and obtaining fresh environmental permits. The new funding is intended to help the company rebuild and enhance processing equipment on-site, meet ongoing project expenses, and finance labour and operations required to achieve full metal production.
Strategic importance and future timeline
Jeff Court, chief executive of Tungsten West, said: "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." The London-listed company confirmed the UK government's shareholding would be officially listed on the stock market on 27 August, with mining activities resuming in the third quarter.
The announcement comes a month after Tungsten West said it was preparing to "ramp up" work at the site ahead of the mine's 2027 opening. It marks the latest utilisation of the National Wealth Fund to advance the government's agenda in key markets, including defence and energy.
During Rachel Reeves' tenure as Chancellor, the policy bank announced a £599m financing package for Rolls-Royce Small Modular Reactors (SMR) to accelerate delivery on its project with Great British Energy. Approximately a thousand jobs are expected to be generated at Rolls-Royce SMR, which is jointly owned by the FTSE 100 giant and Czech power company CEZ, through that funding.
